The liberal government’s new rules on student loan debt repayment kicked in on November 1. Canadian post-secondary graduates will now be exempt from repayments until they earn at least $25,000 a year.
Previous rules required graduates who identified as single to repay debt once they earned an annual income of $20,210. The new rules also alleviate some of the burden on young families of five or more people, pushing the threshold for repayment exemption to a household income of $67,825 per year.
Additionally, the government re-tooled its rules around grants that do not have to be repaid. Here’s a look at the changes:
“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.”
It’s certainly a step in the right direction to help young people transition from school to the workforce. We’d still like to see the rules adopt measure to adapt to the varied cost of living across the country.
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