Manitoba students welcome move to interest-free Canada Student Loans

A new program announced by the federal government to makefederal student loans interest-free will havea positive impact on thoseworkingto get by and pay off debt, say Manitoba students

Canada's Finance Minister and Deputy Prime Minister Chrystia Freeland tabled the fall economic statement Thursday afternoon in Ottawa, which included a program that would permanently eliminate interest on all Canada Student Loans and Canada Apprentice Loansincluding loans already being repaid.

"I think it's pretty awesome actually," said Nolan De Leon.

De Leon is studying medicine and getting his PhD at the University of Manitoba. He applied for a student loan for the first time this year.

"It's really something that I think will help the students to be a little bit more at ease and focus on their education rather than stressing about what the future holds and making sure that they have enough money to even just put food on the table," he said.

The program, which takes effect as ofApril 1, 2023, is expected to save the average student loan borrower $410 a year.

De Leon isn't the only one already seeing the benefit of the new program.

University of Winnipeg student Matthew Csuk is in his final year studying education.

"It's going to make a huge difference," said Csuk, who read about the announcement on his way to class Thursday afternoon.

"It shows that they're looking out I guess for us as ... we're entering the workforce, so it's going to make it a little easier for new graduates," he said.

Sarah Hale called Thursday's announcement "life-changing".

Hale said she's currently working multiple jobsincluding an as education assistant, barista, pet-sitterand nannyto get by while also trying to pay off thousands of dollars in student debt.

"The limited income that I have now is all going toward rent and gas and groceries and my student loan debt," said Hale. "I have to budget so much in order to have room for all of these things and to not have to, like, worry about all the interest that I'm acquiring because I'm unable to pay off right away."

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Hale graduated during the pandemic with a degree in kinesiology and said she's currently working to pay off her debt before going back to school to finish her education degree.

"If I don't have to worry about interest, I don't need to deplete all of my savings," she said.

"I wish they'd done it sooner, but I'm still super appreciative that this is happening," said Hale.

"I think this is going to be a game-changer for many other people that are in the exact same position as me."

The government said it willalso spend$802.1 million over the next three years for a "youth employment and skills strategy" that will include some 70,000 annual summer job placements.