students who have taken out a Canada Student Loan will not have to repay their debt until he or she is earning at least $25,000 per year, Does it help you?

[kurtzfan]

The federal government has announced new measures to help recent post-secondary graduates manage their student debt. In a press release published Sunday, Employment and Social Development Canada revealed that, as of Nov. 1, Canadians wouldn’t have to repay their Canada Student Loan until they’re earning at least $25,000 a year.

Under the Repayment Assistance Plan, students can request help to manage their debt. Depending on their income level and the size of their family, borrowers can apply for reduced monthly payments or no monthly payments at all.

According to the 2016 Budget, the increased eligibility for the Repayment Assistance Plan will provide an additional $131.4 billion in student assistance over five years.

 

 

 

In the release, Employment Minister MaryAnn Mihychuk stated that the country’s future prosperity depended on young Canadians receiving good education and training for the job market.

“As a result of this new measure, students will be better positioned to transition into the workforce after graduation,” Mihychuk said.

The government said this financial relief is in addition to the changes to the Canada Student Grants program enacted on Aug. 1. 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. The Canada Student Grant amounts have been increased by 50 per cent according to the release.

From 2013 to 2014, approximately 750,000 students were repaying Canada Student Loans according to the government. Of those 750,000 borrowers, roughly 234,000 of them benefited from the Repayment Assistance Plan.

Students struggling with the burden of debt are encouraged to contact the National Student Loans Service Centre to learn more about what financial assistance options are available to them.

 

Based on the individual’s financial situation, a borrower can apply for a reduced Canada Student Loan monthly payment, or for no payment at all, the government said in the statement.

[Drive-By Body Pierce]

It did for my first couple of years of out Uni, when looking for a job that was "the right fit".

 

Caveat: It looked boring after the title, so my answer is based on that alone.

[luckylager]

Total BS.

 

The government needs to own up to its duty to educate its citizens and in turn build a stronger country. No student should have to pay back any of their loan until they're actually employed in the field they were educated in.

 

By doing this the government would force themselves to communicate with industry and not grant loans to students who seek education in fields where they have almost no chance of gainful employment. A risk-reward exercise.

 

Maybe then they'd start to realize that they need to nationalize education and stop allowing uni's to put butts in seats instead of actually giving people useful degrees.

 

But that's just me. A crazy leftist

[The Weasel]

Does this apply to people that have already applied for loans or for people taking out new loans?

[Apple Juice]

If you worked full time at a fast food restaurant making just above minimum wage ($11.50 for example) with 75 hours on your paycheck, that's already more than $25,000

[Jaku]

No it does not, I make slightly more than 25,000 dollars a year and I still struggle to pay my payment, plus providing everything my family needs to survive. 

[Ghostsof1915]

How about something radical. Like business putting money where it's mouth is. You sign a eight year deal. The government pays room and board. Business kick in a $30000 wage and both split tuition and supplies. When you graduate you are flagged as a student and can't apply for citizenship elsewhere. You stay at "entry level" contract for the eight years. At the end no loans. Tons of work experience and a degree. Win for everyone.

[khay]

25,000? Lol. 

 

Most new grads when they are not able to find a job in your field of study, they basically find a temp job of some sort in order to make ends meet.

 

Realistically, in Vancouver or most other major cities, $25,000 is like the minimum you need to earn to afford a decent living. A 1 bedroom apartment goes for at least $1100 in Vancouver, food is about $500, transit is about $150, internet and phone bills are about $150. So that's already $1900*12=$22,800. And this does not count for the deductions or other spendings (for example, entertainment). 

 

So to benefit from this, you either work just enough so that you make slightly under 25,000 but have very little to spend or you just go ahead and make over $25,000 but pay the student loan. 

 

If this value is set higher, say $35,000, then I think it could definitely benefit students IMHO.

 

[cripplereh]

I think students need to think of this and like said get a job and go take classes and make due so easy to pay back what you owe after like most people do

[Type R]

25000 a year?  Thats still poverty line folks.. That is 2083/mo, which after tax is around $1500/mo.  Take off rent of about 750 for a one bedroom, transportation (200 on the cheap) food (350 on the cheap) that doesn't leave a hell of a lot for anything else.  We are talking a full time job paying just over $13/hr, I sure hope that isn't the going rate for staff with post secondary education..

[-AJ-]

If I'm still being charged interest, it makes no difference to me.

[RRypien37]

54 minutes ago, ajhockey said:

If I'm still being charged interest, it makes no difference to me.

 

This. 

 

Doesn't seem like the article mentioned anything about the continuation of the vig. 

 

Who cares if you don't have to make payments when the total amount you have to pay is increasing every non payment. 

 

Going in circles. 

[SaintPatrick33]

25,000????? 

 

hahahahahahhahahahaha. 

 

[falcon45ca]

5 hours ago, luckylager said:

Total BS.

 

The government needs to own up to its duty to educate its citizens and in turn build a stronger country. No student should have to pay back any of their loan until they're actually employed in the field they were educated in.

 

By doing this the government would force themselves to communicate with industry and not grant loans to students who seek education in fields where they have almost no chance of gainful employment. A risk-reward exercise.

 

Maybe then they'd start to realize that they need to nationalize education and stop allowing uni's to put butts in seats instead of actually giving people useful degrees.

 

But that's just me. A crazy leftist

You're assuming that because a person has a degree/diploma, there is a market for their education.

 

Tell me, what is the job that a BA in History is trained for? Philosophy? Art? Music? What if 10, 000 students select fields that only have 5,000 jobs?

 

Ohhhhhh, so the government should be able to dictate what a student chooses to study? Hmmm, interesting. What else should the government be able to force us to do?

 

I agree with nationalized education, but those aren't good points to support that idea.

[Bissurnette]

It certainly helps a lot more than the process the previous government had in place. That said, I did get a letter in the mail a couple of weeks ago saying that I have to start repaying my loans at the end of this month and I won't be making 25,000 in 2016. I graduated last May. So I'm not sure if this is actually in effect.

[samurai]

I never paid mine back

[thejazz97]

It doesn't really do anything for me as I don't have any student debt...

[Stelar]

What's the point in going to post secondary education if you can't make over $25,000 per year when you get out....

[Tortorella's Rant]

When you have no debt because Mommy paid for everything. 

[Realtor Rod]

9 hours ago, luckylager said:

Total BS.

 

The government needs to own up to its duty to educate its citizens and in turn build a stronger country. No student should have to pay back any of their loan until they're actually employed in the field they were educated in.

 

By doing this the government would force themselves to communicate with industry and not grant loans to students who seek education in fields where they have almost no chance of gainful employment. A risk-reward exercise.

 

Maybe then they'd start to realize that they need to nationalize education and stop allowing uni's to put butts in seats instead of actually giving people useful degrees.

 

But that's just me. A crazy leftist

Disagree, by a lot. What they should do is graduate the scale of repayment based off your tax returns. The more you earn,  the more you return.