New interest relief measure to provide much needed assistance to Canada student loan borrowers on sick leave or parental leave
More than 7,000 borrowers per year to benefit
GATINEAU, QC, October 7, 2020 / CNW Telbec / – Supporting students and young Canadians is one of the most important investments a government can make to ensure a stronger economy and a better future. It has never been more important than today, at a time when from Canada young people have been hit hard by the COVID-19 pandemic, with summer jobs and internships canceled or changed, and uncertainty around their studies.
Today, the Minister of Employment, Workforce Development and Inclusion of People with Disabilities, Carla Qualtrough, highlighted a new measure to help student borrowers manage the financial burden they may face when taking temporary medical or parental leave from their studies, including for mental health reasons. This measure, announced as part of the 2019 budget, comes into force on October 1, 2020. Borrowers approved under this new measure will benefit from a suspension of payments and interest on their Canada Student Loans for six months, which can be extended up to a total of 18 months of leave.
To be entitled to medical or parental leave, borrowers must:
- at the time of their application, be in full-time or part-time studies, or within the six-month non-repayment period;
- submit a request for medical or parental leave within six months of the end of their last study period, and no later than 12 months after the medical or parental event;
- have taken study leave for medical or parental reasons on or after October 1, 2020; and
- be at least 30 calendar days in a new study period confirmed after any previous medical or parental leave.
This will provide much needed and timely support to students who may be struggling with illnesses, including mental health issues, which significantly affect their ability to continue their education. In addition, students who have recently become parents or guardians of a child may need extended parental leave due to uncertainties about the availability of child care services or concerns about the risk of infection in children. child care providers.
Students deserve to complete their education and build a prosperous future, and this measure ensures that they continue to have access to the tools and opportunities they need to do so.
“Students deserve a fair and equal chance to succeed in their studies, regardless of their family or health situation. With this move, we hope to give them peace of mind knowing that they have the support they need to focus on important life events rather than worrying about their debt. We know that continuing to invest in our students and youth today is vital to our future and to rebuilding a stronger economy.
– Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough
- When a part-time student with both part-time and full-time Canada Student Loans is approved for medical or parental leave, only their part-time loans will be suspended. Payments and interest will continue on the student’s full-time loans.
- The government has increased grants and loans for the 2020-2021 school year, so that students facing financial difficulties can access and afford post-secondary education this school year. These changes include:
- double Canadian scholarships up to $ 6,000 for full-time students and up to $ 3,600 for part-time students and the doubling of the Canada Study Grants for students with permanent disabilities and students with dependents;
- expand eligibility for student financial assistance by eliminating the contributions provided for the student and his or her spouse for the 2020-2021 school year; and
- increase the weekly maximum limit for the Canada Student Loan by 210 $ To $ 350.
- Other government of Canada Supports to help young Canadians and students affected by the COVID-19 pandemic include:
- increased funding of up to $ 187.7 million WHEREAS the Youth Employment and Skills Strategy creates 9,500 additional job opportunities for young Canadians, especially those who face barriers to employment;
- additional funding of $ 61.7 million for the Canada Summer Jobs program to help increase the current placement target from 70,000 to over 80,000 placements for youth aged 15 to 30. To date, over 84,500 jobs have been approved, with thousands of opportunities currently available at www.jobbank.ca;
- increased funding of $ 266.1 million for the Student Work Placement Program to support up to 40,000 internships for post-secondary students in vital sectors such as healthcare; and
- a six-month interest-free moratorium on the repayment of Canada student loans that has relieved more than a million borrowers in repayment.
SOURCE Employment and Social Development Canada
For further information: For media inquiries, please contact: Marielle Hossack, Press Secretary, Office of the Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough, 819- 654-5552, [email protected]; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]