Eliminating Interest on Federal Student Loans Could Cost More Than Initial $2.7 Billion Price Tag: Report

Eliminating Interest on Federal Student Loans Could Cost More Than Initial $2.7 Billion Price Tag: Report
Students walk on campus at the University of Alberta in Edmonton, in a file photo. Omid Ghoreishi/The Epoch Times
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A recent measure eliminating the interest on federal student and apprentice loans could cost more than the $2.7 billion price tag over the next five years that the Employment Department initially gave to a parliamentary committee, new figures show.

The department wrote in an Inquiry of Ministry recently tabled in the House of Commons that the government charged nearly $750 million in total federal student loan interest in 2019—the year before the pandemic hit—and collected about $415 million, according to Blacklock’s Reporter.