British Columbia’s Students Support Recommendation to Create Grants

A new report that recommends more grants for British Columbia’s college and university students has the backing of the Canadian Federation of students.

The Select Standing Committee on Finance and Government Services recently recommended more up-front, needs-based student grants to reduce the province’s student debt.

“Restoring a grants program should be the top priority for student assistance in BC,” said Zach Crispin, Chairperson of the Canadian Federation of Students-British Columbia (CFS-BC).

“Student debt is at an all time high and this program would be positive for students, their families, and the BC economy.”

The CFS-BC says that the average student in BC currently faces a student debt of $26,738, a number that has climbed higher and higher since the government did away with needs-based student grants in 2005.

“BC charges the highest interest rates on student loans in the country,” said Crispin.

They also added that the average student loan can accrue an additional $8,083 of interest payments, or 30.2% of the principle, over a 10 year pay-back period.

“Compound interest adds over $8,000 to the average student’s loan repayment, effectively penalizing students from low-income backgrounds who are forced to take out larger loans.”