KPMG report informs Manitoba federal government to scrap interest-free student education loans
Consulting company says loans cost province $4.5M in low-interest payments every year
Manitoba should scrap no-interest provincial student education loans for post-secondary pupils, KPMG claims in its newly released breakdown of the province’s funds.
The consulting company’s financial report, released on Tuesday, stated having less interest charged on student education loans « may discourage repayment associated with the loans. «
It stated the existing education loan system is « burdensome, » in addition to province should proceed to an integral system administered by the nationwide education loan provider Centre, through the government.
Unlike Canada figuratively speaking, that are provided through the federal government, Manitoba student education loans are interest-free while pupils have been in college and when they’ve finished their studies, provided that they continue steadily to repay the loans.
The KPMG report viewed different factors of post-secondary capital, including college funds, hiking tuition and targeted financing to programs, but pointed towards the past NDP federal government’s choice to waive interest on student education loans as being a money-waster, approximated to price the province about $4.5 million every year. […]