VANCOUVER—Students were pleased to learn that the Report on the Budget 2010 Consultations published today by the Select Standing Committee on Finance and Government Services singled out the province’s high student loan interest rates as an area for further investigation.

“BC charges the highest interest rates on student loans in the country,” said Shamus Reid, Chairperson of the Canadian Federation of Students-British Columbia. “Compound interest adds thousands of dollars to a student’s loan repayment, especially for those from lower-income backgrounds who take out larger loans.”

The BC government charges the prime interest rate plus an additional 2.5%. On a $25,000 student loan repaid over the standard ten-year period, that is an additional $6,454.30, or 26% of the principle.

Although the Federation proposed eliminating the interest charged on student loans and welcomes the committee recommendation, the committee also heard from students and educators across the province about the need for urgent action to reduce student debt accumulation.

“Record high tuition fees and record student debt demands action from the government in the next budget,”said Reid.“Core funding increases, tuition fee reductions, and an up-front student grant program are critical to reducing the need to take on debt in the first place.”

The Canadian Federation of Students-British Columbia is BC’s provincial student organization, representing 150,000 university and college students at all levels of post-secondary education in BC. It is non-partisan and affiliated with Canada’s largest national student organization, the Canadian Federation of Students.

-30-