In a move that mirrors the proposal in Oregon we talked about a few months back, Canadian province Nova Scotia has voted to eliminate interest on college student loans. The legislation is a deliberate and explicit move to remove the crippling financial burden of debt from new students as they start their careers.
Other provinces (and states) should take note. This is a no-brainer. Investing in your college graduates is how you build toward a prosperous future. In an era where the rapidly rising cost of a college education makes more and more people question if the degree is worth the investment, it is in the government’s best interest to reassure people about the value of higher education.
The only lesson to take away from the huge recession a few years back is that searching for short-term gains at the expense of long-term growth is never worth the cost. Let’s be more cautious about who we give loans to and more forgiving about paying them back. The purpose of a loan is an investment in a person or an idea, not a bait and switch to rake in interest and penalties. It’s true with houses, and it’s just as true with students’ futures.