Government of Canada Gives interest Relief to Part-Time Students

Good news for students with a family or career, being a part-time student just got easier. The government of Canada has announced that effective January 1, 2012, new and existing loans for part-time students will be interest-free while they study.

“Economic recovery continues to be our top priority,” said the Minister of Human Resources and Skills Development, the Honourable Diane Finley. “We’re helping Canadians gain the skills and education required to participate in today’s workforce and contribute to Canada’s overall economic prosperity.”

For the rest of 2011, students see an interest rate of prime plus 2.5 per cent applied to part-time student loans. Without paying interest, students would save close to $350 per year. The new regulations mean students will only pay interest on their loan if they graduate or drop out.

“This is a good day for part-time students in Canada,” said Dr. Kellie Leitch, the Parliamentary Secretary to the Minister of Human Resources and Skills Development.

Dr. Leitch made the announcement earlier this week at The University of Toronto and added, “Our Government is reducing their financial burden so they can balance their responsibilities at work and home while studying.”