As part of an effort to take the financial load off of graduates, the Canadian government has made changes to student loan repayments and it looks like you can hold off on your repayments for a little while longer.
In a release issued Tuesday, Employment and Social Development Canada announced it will increase the income threshold on the Canada Student Financial Assistance Program’s Repayment Assistance Plan, as of November 1, 2022.
Qualifying for the Repayment Assistance Plan (RAP) just got easier!
The governments of Canada, Manitoba, Newfoundland and Labrador, Saskatchewan, New Brunswick, and Nova Scotia have increased the zero payment income thresholds and lowered the maximum payments from… (1/2) pic.twitter.com/dVJAUKXSgv
— National Student Loans Service Centre (@nslsc) October 31, 2022
The income threshold which is currently at $25,000 will increase to $40,000 for a single-person family. That means student loan repayments won’t be required until borrowers are earning at least $40,000 a year. And it will be adjusted based on family size.
For those making just above $40,000 annually, don’t worry, you’ll still get a bit of relief. Monthly affordable payments will be lowered from 20% to 10% of your household income, which according to the Canadian government, means “no borrower has to pay more than they can reasonably afford.
The new changes made to the Repayment Assistance Plan are believed to help about 180,000 borrowers every year.