Budget 2019: Important Announcements for Student Aid

On November 1, 2019, the variable and fixed interest rates on Canada Student Loans and Canada Apprentice Loans were reduced. The variable rate was reduced to prime (from prime plus 2.5 percent) and the fixed rate was reduced to prime plus 2 percent (from prime plus 5 percent).
On November 1, 2019, interest no longer accrues on Canada Student Loans and on Canada Apprentice Loans during the six-month non-repayment period immediately following studies or the end of an apprenticeship.

On August 1, 2019, the maximum amount you could receive from the Canada Student Grant for Services and Equipment for Students with Permanent Disabilities (CSG-PDSE) was increased from $8,000 to $20,000 per year.
On August 1, 2019, the definition of severe permanent disability was changed to expand eligibility to those who may be able to work, but whose jobs will never be substantially gainful and/or those who may still be able to participate in post-secondary education.
On August 1, 2020, restrictions for recipients of the Repayment Assistance Plan for Borrowers with a Permanent Disability were removed so that recipients can access further federal student aid without having repaid their loans in full.

Since January 1, 2020, borrowers have a new option to rehabilitate Canada Student Loans and Canada Apprentice Loans in default. They have the option to add their interest to the principal of their loan (capitalize the interest) and make two payments to rehabilitate their loan.

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