Dog wrote:They start imposing interest some 6 months after you graduate in Canada. At least the was the case when I graduated over 15 years ago. Well, the bank that loans you the money gets paid interest from day one, you just don’t see it because the government pays it. The rate is low because the government garanties the principal so credit risk is near zero for the bank. After you graduate, though, you should start getting interest charges. Again, though, because the loan is guaranteed by the government the rate is much lower than it would have been on a strictly personal loan.
Also, fun fact, even if you go bankrupt in Canada you don’t free yourself from student loans. The gov pays the bank but you stay liable to the gov.
Also, as you well know, tuition in Canada has nothing to do with tuition in the US. Our system kinda makes sense.
I’m not in favour of free tuition for all, like those silly Quebec students kept demanding. That’s actually quite a regressive right wing proposal. A scheme of means tested bursaries (non reimbursable) and loans makes much more sense.
I prefer free as education is a public good, but if we are doing loans interest free should be the thing.