Alberta's Budget Cuts Will Raise Your Tuition And The Interest On Your Student Loans
Tuition could go up by 21% over the next three years.
The Government of Alberta has officially announced its new budget. The plan aims to pull Alberta out of debt and balance the province’s budget in four years, by 2023. In order to reduce government spending, there have been several significant budget cuts. The update will bring changes in many areas including corporate taxes, healthcare, and education. In regards to the impact on education, cuts are being made across the board, from kindergarten to post-secondary. Alberta post-secondary budget cuts will impact both students and graduates of Alberta colleges and universities. More specifically, it will impact their bank accounts.
It's certainly no secret that students are notoriously broke. From tuition costs and textbooks to rent and, you know, beer, there's a lot of expenses young academics need to take care of. If you're a post-secondary student, a graduate, or someone who's planning on pursuing further education in the future, you should be aware of how Alberta's new budget may affect you.
According to the Complete Financial Plan on the Government of Alberta’s website, post-secondary tuition will be subject to up to a seven percent increase each year over the course of the next three years. Within the next three years, tuition costs can increase by up to 21%.
If you've ever been a student trying to make ends meet or a student who takes out loans, you know that a 21% increase is significant. Speaking of student loans, According to CBC News, anyone who has received student loans from the province of Alberta can say goodbye to the tuition tax credit.
Therefore, you won’t be receiving any return for paying student loans in Alberta. There will also no longer be an education tax credit. On top of that, student loan interest rates will be going up from “prime plus one percent.”
According to the Government of Alberta’s website, “Budget 2019 reflects a commitment to responsible fiscal management and a promise to balance the budget in 4 years.” Jason Kenney’s UCP government intends to balance the budget through these adjustments in order to receive Alberta’s current debt of $62.7. It continues to say that the Albertan Government "spent almost $2 billion on interest (debt servicing) last year."
The plan places focus on creating jobs for Albertans and “delivering public services and infrastructure to support private sector investment and vibrant society.”
If you're a broke student in Alberta, you may want to take a long, hard look at your personal budget and account for these changes.