As of today, Canadians don’t have to repay their Canada Student Loan until they’re earning at least $25,000 a year.
Under the Repayment Assistance Plan, borrowers who are having difficulty making their monthly Canada Student Loan payments can apply for help to manage their debt, according to a statement by the federal department of Employment, Workforce Development and Labour.
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.
“The future prosperity of our country depends on young Canadians getting the education and training needed to succeed in the job market,” Employment Minister MaryAnn Mihychuk said in a statement. “As a result of this new measure, students will be better positioned to transition into the workforce after graduation.”
The financial relief for student loans is in addition to a 50-per-cent increase in the Canada Student Grants program enacted on Aug. 1, the Liberal government said. The increase to the grants program will provide additional assistance of $1.53 billion over five years.
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.
From 2013 to 2014, approximately 750,000 students were repaying Canada Student Loans, of which nearly 234,000 students benefited from the Repayment Assistance Plan, according to government statistics.
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