The Alberta government announced it will cap domestic tuition increases at two per cent across provincial institutions in 2024-25 and for future academic years, February 16, 2023. (File Photo: University of Lethbridge)

By Sarah Jones/LethbridgeNewsNOW

Alberta to cap tuition fees and extend post-secondary loan repayment

Feb 16, 2023 | 2:02 PM

EDMONTON – The Alberta Government is promising economic relief for post-secondary students dealing with rising interest rates and an increased cost of living.

On Feb. 16, the Minister of Advanced Education Demetrios Nicolaides announced the province’s plan to improve affordability for students as part of the 2023 Budget.

The plan includes capping domestic tuition increases at two per cent across provincial institutions in 2024-25 and future academic years.

The minister indicated this will reduce the inflationary pressures felt by post-secondary students and will apply to all domestic students.

Nicolaides explained, “High inflation has made life more expensive for all Albertans, including post-secondary students. These new measures will help all students deal with higher costs during these challenging times.”

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Neighbouring provinces like British Columbia and Saskatchewan have already implemented a flat two per cent cap on post-secondary tuition.

The Government of Alberta will also be reducing interest rates on student loans, which means approximately 164,000 Alberta student loan borrowers and future borrowers will benefit from the changes to the prime rate.

In addition, Alberta will be doubling the student loan interest-free grace period from six months to 12 months starting July 1, 2023, and it will apply to students who completed their education in December 2022.

That means approximately 57,000 post-secondary students who graduate in the province every year will have an additional six months to pay back their loans.

The only other province in Canada that has a 12-month grace period is Prince Edward Island.

Alberta will also increase the threshold for the repayment assistance plan, and will provide additional funding to increase the Alberta Student Grant by $225 per month for each eligible student during the 2022-23 loan year.

Minister of Affordability and Utilities Matt Jones said, “These new affordability measures for students are an important addition to our Affordability Action Plan, and underscore our commitment to students and to keeping Alberta affordable.”

The province hopes that these measures will ease the impact of inflation so post-secondary students can focus on their education and worry less about expenses.