Break for B.C. students on loan repayments 0
B.C. Premier Christy Clark announced Monday a two-phase plan to make it easier for low-income students to repay student loans.
"It is sometimes really difficult to try and repay your student loans if you are a new graduate and just entering the work force at starting pay," said Clark at Richmond's South Arm Community Centre. "For the first time, rather than having hard arbitrary cutoffs, it takes into account your family circumstances."
A household with two parents and two children making $50,000 annually can get monthly student loan payments down to as low as $87. In the current system, the same family would be required to pay around $400 a month on outstanding student loans.
The program is two-fold, first allowing for paying back the loan's interest, and the second stage dealing with the principle.
"Being able to have a repayment program that is income based isn't only a fair system, but a much-needed one in B.C.," said Kwantlen University student and mother of one Arzo Ansary. "Not having to worry about being broke, because I chose higher education, provides me with a very good sense of security."
The announcement is the final part of the Families First Agenda, which also introduced Family Day and increasing the B.C. minimum wage.
Victoria estimates the new assisted repayment plan will help up to 20,000 students annually.
Starting July 1, the amount of relief for a debt holder will be based on family size, income and debt load.