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Consulting company says loans price province $4.5M in low-interest payments every year
Manitoba should scrap no-interest student that is provincial for post-secondary pupils, KPMG claims in its newly released report on the province’s funds.
The consulting company’s financial report, released on Tuesday, stated the possible lack of interest charged on student education loans “may discourage repayment for the loans. “
It stated the existing education loan system is “burdensome, ” and also the province should go on to a built-in system administered by the nationwide education loan Service Centre, through the government.
Unlike Canada student education loans, that are supplied through the government that is federal Manitoba student education loans are interest-free while students come in college and once they’ve finished their studies, so long as 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 capital to programs, but pointed towards the past NDP federal federal government’s choice to waive interest on student education loans as being a money-waster, predicted to price the province about $4.5 million every year.
The report said the common four-year program that is post-secondary around $17,000 as well as the typical education loan financial obligation after graduation is all about $9,300.
KPMG had been tapped in 2016 to conduct the financial review, at a price of $740,000. Continue reading “KPMG report informs Manitoba federal government to scrap interest-free figuratively speaking”