UPEI Student Union calls for new moratorium on loan payments
Brian Higgins | CBC News | Posted: February 4, 2021 11:00 AM | Last Updated: February 4, 2021
Pause on payments would benefit Island economy, says student union
The student union at UPEI is calling on the province to bring back its moratorium on student loan payments.
The union wants the new moratorium on payments to run from April through September.
"We're not even done with the pandemic or the economic implications of it," said Malak Nassar, the union's vice-president academic and external.
"So we're asking for another round of this moratorium provincially."
The student union, which represent 4,800 full-time students at UPEI, has launched a letter-writing campaign and online petition aimed at MLAs and cabinet ministers. About 260 students and alumni have sent letters, according to Nassar.
As the province prepares a budget while simultaneously fighting the pandemic's health and economic fallout, the student union argues a new moratorium could put money where it's needed.
"Having six months' worth of not having to pay student loans means that recent graduates and young professionals have disposable income that will hopefully pump more money into the economy," said Nassar.
"It's good for the people who are working and paying their loans but also good for the general economy."
A previous moratorium, on provincial as well as federal student loan payments, expired Sept. 30 last year.
A spokesperson for the Department of Finance said the province cannot speak about what may or may not be in the budget prior to its release. Provincial student loans in P.E.I. continue to be interest free, and payments do not begin until one year after the student leaves school.
"Government continues to work with our post-secondary sector to ensure that students continue to be supported through their studies now and in the future," according to a written statement from the department.
The student union presented its proposal during online pre-budget consultations with the province last month. Online events reached more than 11,000 Islanders, according to the province and 120 written submissions have been received.
Many students and alumni wrote letters to multiple MLAs. The student union intends to hand-deliver about 1,200 letters to MLAs and cabinet ministers at legislative offices in Charlottetown in the coming days, according to Nassar.