Employment and Social Development Canada announced last Sunday that, as of November 1, students will not need to begin paying their Canada Student Loan until they are making over $25,000 a year.
“We will also make our student loan system more flexible,” the Liberal government’s website reads on their post-secondary plan intentions. “We will ensure that no graduate with student loans will be required to make any repayment until they are earning an income of at least $25,000 per year.”
With the average Canadian’s student debt on the rise, this will come as a huge relief to some students. A 2015 survey determined that the typical student with undergraduate school debt owes an average of $26,819 — further noting that this affects many students’ decisions to go to grad school and also impacts the mental health conditions of graduates.
The Liberal government has placed a strong focus on the lives of students and low-income families financially, implementing several new measures. They will also be increasing the maximum Canada Student Grant for low-income students to $3,000 per year for full-time students and to $1,800 per year for part-time students.
For students who will still be struggling to pay back their student debt, the Repayment Assistance Plan provides another option for students, offering options of either having reduced mostly loan payments or not making any payments, depending on the student’s financial situation.