Graduates don’t have to repay loans until they earn $25,000
Administrator | Oct 31, 2016 | Comments 2
Under new measures, students will not have to repay Canada Student Loans until they are earning at least $25,000.
The federal government has announced new support to help recent post-secondary graduates manage their student debt.
In a press release Sunday, Employment and Social Development Canada revealed that under the Repayment Assistance Plan, students can request help to manage their debt.
Depending on their income level and the size of their family, borrowers can apply for reduced monthly payments or no monthly payments at all.
In the release, Employment Minister MaryAnn Mihychuk stated the country’s future prosperity depended on young Canadians receiving good education and training for the job market.
“As a result of this new measure, students will be better positioned to transition into the workforce after graduation,” Mihychuk said.
It is expected the increase to the Repayment Assistance Plan eligibility thresholds will provide additional assistance of $1.31.4 million over five years. In 2013-14, approximately 750,000 Canadians were repaying Canada Student Loans, of which nearly 234,000 benefitted from the Repayment Assistance Plan. Of those, 87 per cent did not have to make any payments at all. The threshold for assistance has increased 23.7 per cent.
The financial relief is in addition to increases to the Canada Student Grants program announced in August.
Under those measures, full-time students from low-income families can receive $2,000 to $3,000 a year in support. Canadians from middle-income families are eligible to receive $800 to $1,200 a year and part-time student from low-income families can receive $1,200 to $1,800 in financial aid. The Canada Student Grant amounts have been increased by 50 per cent according to the release.
Students struggling with the burden of debt are encouraged to contact the National Student Loans Service Centre to learn more about what financial assistance options are available to them. http://www.esdc.gc.ca/en/student_loans/repayment_assistance_plan.page Enrolment is not automatic and you must re-apply for this plan every six months.
Filed Under: Local News
Good start but foresee administrative nightmare since every 6 months. (It’s our family experience that processing applications based on family income take almosr 3 months). Why not forgive $5000 a year, say instead? Students wouldn’t accumulate so much interest debt. And, extra incentive to continue.
This is a wonderful step forward by our government. Too many members of my generation do not pursue higher education because they cannot afford to go, and fear that the debt they incur with student loans will follow them for the rest of their lives. I am glad to see that Canada is making an investment in future generations.