Canada Student Loan borrowers get additional loan repayment relief

0
323

labour-minister-maryann-mihychukOttawa: Strengthening Canada’s middle class and helping those working hard to join it means supporting students as they transition to jobs.

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 their financial situation—such as their income and family size—borrowers can get approved for a reduced monthly payment on their Canada Student Loan, or for no monthly payment at all.

With these enhancements, borrowers in need will be getting more financial relief so they can focus on finding the right job to start a career, without the management of loans becoming an overwhelming burden.

This relief is in addition to increased supports for students through the Canada Student Grants. As of August 1, the Government is providing more money. 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 future prosperity of our country depends on young Canadians getting the education and training needed to succeed in the job market. As a result of this new measure, students will be better positioned to transition into the workforce after graduation,” said The Honourable MaryAnn Mihychuk, Minister of Employment, Workforce Development and Labour

Quick Facts

Budget 2016 provided the first significant increase to Canada Student Grants and the Repayment Assistance Plan income thresholds since 2009.

The increase to Canada Student Grants will provide additional assistance of $1.53 billion over five years.

The increase to the Repayment Assistance Plan eligibility thresholds will provide additional assistance of $131.4 million over five years.

In 2013–14, approximately 750,000 Canadians were repaying Canada Student Loans, of which nearly 234,000 benefited from the Repayment Assistance Plan.