Employment and Social Development Canada announced updates to help students repay their loans
On Nov. 1, Carla Qualtrough, Minister of Employment, Workforce Development and Disability Inclusion announced changes to the Canada Student Financial Assistance (CSFA) Program’s Repayment Assistance Plan to support young Canadians in better starting their careers. The changes are as follows:
The zero-payment income threshold for Canada Student Loans and Canada Apprentice Loans will increase from $25,000 to $40,000.
Payment is not expected until borrowers are earning an annual income of at least $40,000.
The threshold will vary based on household size.
The cap on monthly affordable payments will be lowered from 20 per cent to 10 per cent of a borrower’s household income.
Monthly affordable payments will be reduced to ensure that nobody “has to pay more than they can reasonably afford.”
These changes are expected to affect approximately 180,000 students each year. However, these updates will not be implemented in Quebec, the Northwest Territories, and Nunavut since they do not participate in the CSFA Program. However, Manitoba, Newfoundland and Labrador, Saskatchewan, New Brunswick, and Nova Scotia will also introduce the same changes to their Repayment Assistance Plans.
Photo by Lily Cowper