KPMG report tells Manitoba federal government to scrap interest-free student education loans

KPMG report tells Manitoba federal government to scrap interest-free student education loans

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Consulting company says loans price province $4.5M in low-interest payments every year

Manitoba should scrap no-interest provincial student education loans for post-secondary pupils, KPMG claims with its newly released writeup on the province’s funds.

The consulting company’s financial report, released on Tuesday, stated having less interest charged on student education loans “may discourage repayment associated with the loans. http://www.speedyloan.net/title-loans-ne

It stated the present education loan system is “burdensome, ” in addition to province should proceed to an integral system administered because of the National education loan provider Centre, through the authorities.

Unlike Canada student education loans, that are supplied through the government that is federal Manitoba student education loans are interest-free while pupils come in college and when they’ve finished their studies, provided that they continue steadily to repay the loans.

The KPMG report looked over different facets of post-secondary financing, including college funds, hiking tuition and targeted financing to programs, but pointed towards the past NDP government’s choice to waive interest on figuratively speaking being a money-waster, believed to cost the province about $4.5 million each year.

The report stated the typical four-year post-secondary system expenses around $17,000 in addition to typical education loan financial obligation after graduation is all about $9,300.

KPMG ended up being tapped in 2016 to conduct the financial review, at a expense of $740,000. Read more