The Canadian government said it remains committed to abolishing interest charges on Canada Student Loans despite raising them, according to Blacklock’s Reporter..“We remain committed to permanently eliminating the federal interest on Canada Student Loans,” Liberal MP Irek Kusmierczyk told the House of Commons. .“We will help young Canadians.” .The remarks followed questioning by independent MP Kevin Vuong, who noted the Liberals promised to end interest charges on student loans. .Kusmierczyk said the Canadian government “had students’ backs every step of the way.” He did not refer to current interest charges. .The Canadian government gave notice on September 17 it would raise the interest rate for student loans. .READ MORE: Liberals get ready to raise rates on student interest loans.The Department of Employment said in a legal notice from Canada Student Loans Regulations interest charges retroactive to August would be increased from 2.1% to 3.1%. A current moratorium on interest payments expires on March 31. .The Liberals said in their 2021 campaign platform they would abolish interest charges under the Canada Student Loan program. The cost was $538 million a year..Vuong questioned cabinet’s “failure to honor its promises to Canadians” on student loan charges. He said the failure resembles its inability to combat rampant inflation, high interest rates, and hefty food costs. .An official estimate of total costs for the Canada Student Financial Assistance Program for post-secondary students puts it at $4.7 billion this year. Auditors at the Department of Employment said loan default rates have gone from 28% to 9% since 2004 due to larger grants and wavering payments for delinquent borrowers.
