Canada Student Loan borrowers are getting additional loan repayment relief
The federal government is taking steps to prevent student loans from becoming an overwhelming burden as of November 1st, 2016.
Published Sunday, October 30, 2016 12:36PM EDT
The federal government is taking steps to prevent student loans from becoming an overwhelming burden. As of November 1, no single Canadian will have to repay their Canada Student Loan until she or he is earning at least $25,000 per year.
Borrowers who are having difficulty making their monthly Canada Student Loan payments can apply for help through the Repayment Assistance Plan. Depending on factors such as income and family size, borrowers can get approved for a reduced monthly payment on their Canada Student Loan, or be approved for no monthly payment at all.
This relief is in addition to increased supports for students through the Canada Student Grants. As of August 1, Canada Student Grant amounts have been increased by 50 percent:
• From $2,000 to $3,000 per year for full-time students from low-income families;
• From $800 to $1,200 per year for students from middle-income families; and
• From $1,200 to $1,800 per year for part-time students from low-income families.
The Minister of Employment, Workforce Development and Labour, MaryAnn Mihychuk says, "The future prosperity of our country depends on young Canadians getting the education and training needed to succeed in the job market.”
The new measures are part of the 2016 Budget, which included increases to Canada Student Grants of $1.53 billion over five years and an increase to the Repayment Assistance Plan eligibility thresholds of $131.4 million over five years.
As of the 2013-14, about 750,000 Canadians were repaying Canada Student Loans. Nearly 234,000 of them used the Repayment Assistance Plan.