Justin Trudeau Reveals Major Plans To Help Canadian Students Save Thousands Of Dollars
Justin Trudeau's government announces reduction on student loans in Canada in Budget 2019.
The federal government unveiled the Budget 2019 today on Tuesday, March 19, and it is full of different initiatives that could improve Canadian lives. There are major plans to improve housing affordability, help young Canadians get employed, and more. Not only that, but the government is promising a major change that will greatly impact students. Justin Trudeau proposed in Budget 2019 to help Canadian students by lowering interest on loans and saving them thousands of dollars.
The 2019 federal budget will be Justin Trudeau's last budget before the upcoming election this fall. The budget proposes to help Canadians from all different backgrounds, and students will be happy to hear that they are one of the major winners of this proposal.
Budget 2019 proposes to make obtaining a university education more affordable for all students in Canada by lowering interest rates on student loans! Their new initiatives will "help more students better manage the mounting pressure of higher living costs and the changing nature of work, and specifically to help make sure that student loans are more affordable for the students who need them".
Both the floating interest rate, which is a rate that 99 percent of student loan borrowers use, and the fixed interest rate will be lowered starting in 2019-20.
Not only this, but there will also be a new interest-free grace period. "In addition, Budget 2019 proposes to amend the Canada Student Financial Assistance Act, so that student loans will not accumulate any interest during the six-month non–repayment period (the "grace period") after a student loan borrower leaves school," reads the document.
These changes will save students thousands of dollars and positively affect over one million people. "As a result of these changes the average borrower will save approximately $2,000 over the lifetime of their loan," says the budget document. "Approximately 1 million student loan borrowers currently in repayment, and 200,000 graduates who leave school each year, will benefit from these changes."
Budget 2019 includes several other proposals to seemingly help improve the lives and wellbeing of students in Canada, such as improving the accessibility of student loans, supporting graduates through research scholarships, supporting Indigenous post-secondary education, and more.
Several other initiatives proposed in the federal budget will also benefit young Canadians and millennials. For instance, there are measures proposed to make housing more affordable and easier for millennials and first-time home buyers.
#YourBudget2019 is all about you, and making investments that will help you and your family succeed – all while creating good middle class jobs and building a stronger economy. Read the full budget here: https://t.co/rPWU5xZKBK— Justin Trudeau (@JustinTrudeau) March 19, 2019