The New Brunswick legislature in Fredericton. Image: Brad Perry

The Higgs government is making good on a promise it made six months ago.

As of November 1, it will eliminate interest on the provincial portion of New Brunswick student loans.

The interest accrued before this date remains payable.

“Eliminating the interest on student loans is something student representatives have asked for, and it has always been our intention to do so,” said Post-Secondary Education, Training and Labour Minister Trevor Holder. “In 2020, we began helping students by lowering the interest rate. Now I am proud to say that we are at a point where we can completely eliminate it. This will make post-secondary education more attractive by reducing the borrowing costs for students.”

The province said this initiative will benefit 65,000 existing borrowers and any future post-secondary students in the province.

A student who must repay a loan of $15,000 over 10 years will save about $4,500.

Estimates are based on the latest interest rates set by the Bank of Canada.

The government noted the many supports and services to help students with the costs of their post-secondary studies which include federal and provincial grants, bursaries, loans and the Repayment Assistance Program.

Through one application, they will be considered for all programs offered by the provincial and federal governments.

More info on financial support for students can be found online.

We're making post-secondary education more attractive and affordable by reducing the cost of borrowing for students. As of November 1, interest on the New Brunswick student loan will be eliminated! https://t.co/AXPAEbJtou pic.twitter.com/CDi8erEYs8

— Government of NB (@Gov_NB) October 31, 2022