Laura McKinnon, president of the Students' Association of Olds College, says there are some good things in the federal budget for post-secondary students.
The budget was introduced Tuesday, March 19.
"I would say there are some positive aspects towards accessibility and affordability for post-secondary students," McKinnon said during an interview with the Albertan.
For example, McKinnon likes provisions to cut interest rates, provide an interest-free grace period as well as a plan to make Canada student loans more accessible.
According to budget documents, students with a floating interest rate loan will now only have to pay the prime rate for that loan. Previously, they were charged 2.5 percentage points, above that rate.
Also, the fixed interest rate has been lowered to prime plus two percentage points, down from the previous prime plus five.
Both of these changes will take effect in the 2019-20 academic year.
Also, students who have federally-administered student loans will continue to have a six-month grace period after leaving school to obtain a job before they have to begin repaying their loans. The federal government plans to make that grace period interest-free.
Another change would mean that students would not accumulate any interest on their loans during that grace period. It's expected that could save them about $2,000 during the lifetime of their loan.
"I think that they will have easier access to gaining those student loans as well as being able to pay them back quicker, " McKinnon said.
In addition, the federal government plans to provide $15 million over five years to help students with disabilities and students in “vulnerable” life situations.
For example, the cap on the Canada Student Grant for Services and Equipment for Students with Permanent Disabilities which provides funding to students with disabilities to help them obtain the equipment and services they need will rise to $20,000 a year from the current $8,000 a year.
Also, until now, students with disabilities who have been out of post-secondary education for more than five years were unable to get more loans and grants until their loans were paid off.
The 2019 federal budget proposes to remove that provision so students with a disability can go back to school after a long time without having to repay thousands of dollars.
"I believe that this will support affordability and accessibility for our students. And then it also really positively contributes to removing some of those barriers for student borrowers in vulnerable financial or life situations," McKinnon said.
For example, the federal government also aims to create 84,000 new student work placements across Canada by 2023-24.
McKinnon likes that provision.
"The budget proposed to expand the student work placement program in all disciplines, which will really positively impact some of our animal science students, our horticulture students, turfgrass students, hospitality and tourism students," she said.
"We were pleased to see that all these disciplines will be added or included, because it will be a better fit for Olds College," she added.
McKinnon is in her second and final year of the land and water resources program at Olds College.
"I'm graduating this April," she said.
