Student Loan Rules Change for Canadians
As of today, students with outstanding loans taken out to help fund their educational growth are subject to a new set of rules and regulations aimed at making student loan payments easier and reducing the impact of debt on personal financial health.
Under the old rules, single people had to start paying back Canada Student Loans once they earned $20,210 a year. The cut-off point is now $25,000 for individuals, and roughly $67,000 for families of five people or more.
Student borrowers who are having difficulty making their monthly Canada Student Loan payments can apply for help through the Repayment Assistance Plan, as well. From 2013 to 2014, approximately 750,000 students were repaying Canada Student Loans according to the government. The value of these loans exceeded $2.5 billion over that same year. Fluctuations in the job market for recent graduates, combined with the steadily increasing amount of loans disbursed to students, have resulted in a grim outlook for many students seeking to make long term plans for life outside of school, including plans for home ownership, travel, or family development.
The combined effect of increased student debt feeds back negatively on the job market itself, as fewer students are positioned to make the leap to gainful employment and financial independence after their degrees. With these changes – and hopefully further ones to come from the Federal government – a generation of promising professionals are being given avenues that will help to keep them from being submerged by long-term debt for years to come.