Budget 2021: Important announcements for student aid

From: Employment and Social Development Canada

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The Government wants to help students pursue post-secondary education. Given the continued impact of COVID-19 on students, Budget 2021 will help with the following supports.

Suspension of interest

Until March 31, 2023, no interest is charged on Canada Student Loans and Canada Apprentice Loans. For more information, please see this year’s budget announcement.

Provincial interest rates may still apply. Contact the National Student Loan Service Centre or your province or territory to find out more.

Student grant supports

The Government has extended doubling the maximum amount of Canada student grants until the end of July 2023.

Grants are also now more accessible. Students are able to use their current year’s income, instead of the previous years, to determine their eligibility for Canada student grants.

Find out more on the Canada student grants and loans page.

Skills Boost program

The Skills Boost program has been extended until July 2023. It provides a top-up on the Canada Student Grant for Full-Time Students. This will help working adults afford the cost of returning to school full-time to upgrade their skills.

Easier access to repayment assistance

The Repayment Assistance Program will be updated to help people living alone with an income of $40,000 or less. They will not have to make payments on their student loans. Maximum payments will also be lowered from 20 percent to 10 percent of household income. The changes will take effect in the fall of 2022, if approved by the Government. For more information, please see this year’s budget announcement.

Expanding support for borrowers with disabilities

Support will be expanded to include people who have longer-term disabilities. This adds to support already in place for people with lifelong, permanent disabilities. The changes are planned for the 2022 to 2023 school year, if approved by the Government. Please see the budget announcement for more information.

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