As part of the 2022-23 budget estimates, the Department of Post-Secondary Education, Training and Labour announced that it will be eliminating interest on provincial student loans.
“Our government recognizes the importance of making post-secondary education more affordable,” said Post-Secondary Education, Training and Labour Minister Trevor Holder. ‟Eliminating student loan interest is something student representatives have asked for, and it has always been our intention to do so. In 2020 we lowered the interest rate, and I am proud we are now at a point where we can eliminate it.”
The initiative will cost the provincial government about $5.5 million per year and benefit 65,000 existing borrowers, as well as future New Brunswick post-secondary students. A borrower repaying a loan of $15,000 over 10 years will save about $2,100. These estimates are based on the latest interest rates set by the Bank of Canada.
This relief will only apply to loans issued by the provincial government. The relief is not retroactive and will only apply to loan balances as of the implementation date, which is expected to be sometime this fall.