The B.C. government is poised to double student loans payment and drastically raise the cap for repayment forgiveness.
Provincial government officials said student loan payments will rise from $110 to $220 per week for single students and from $140 to $280 per week for students with dependents.
On top of that, students applying for financial aid will automatically be considered for the BC Access Grant, which provides as much as $4,000 per year to low and middle-income students attending one of the province’s public post-secondary institutions.
B.C. Government officials said the student loan repayment terms are also getting some reform to align with the federal government’s Repayment Assistance Program.
This change will see the income cap for repayment forgiveness rise from $25,000 to $40,000.
The forgiveness cap will apply to new financial aid applicants as well as people who are still paying back student loans.
Additionally, the maximum monthly repayment amount will be lowered from 20 per cent to 10 per cent of household income.
The province said the changes were implemented due to rising inflation, and will come into effect in August.
“Access to finances shouldn’t be a barrier to preparing for an in-demand career in B.C. This is an immediate-term action to make education more accessible, as we continue the work on our medium-term plans to review the post-secondary funding model and expand the BC Access Grant,” said Selina Robinson, Minister of Post-Secondary Education and Future Skills.
“Making education more accessible and affordable is a major focus for our government and an important part of our Future Ready plan.”