KITCHENER, ONTARIO, August 25, 2008 - It's getting easier to keep learning! Canadians interested in pursuing post-secondary education will now have access to more opportunities then ever, as details of the recent changes to stude ent financial assistance were unveiled.
The Honourable Monte Solberg, Minister of Human Resources and Social Development announced the changes at Kitchener's Pathways to Education Program.
"Because of the changes our Government has intro duced, the dream of a post secondary education will be open to every Canadian regardless of their level of income," said Minister Solberg. "What a tremendous opportunity for students and for their potential, and what a powerful advantage for Canada."
The changes in student financial assistance programs include a new up-front Canada Student Grant of $250 per month for students from low-income families and $100 per month from students from middle-income families; a new repayment plan to help student s who are having difficulty paying back their student loans, as well as improved services for students to simplify the whole loan process; and greater support for students with permanent disabilities.
"We congratulate the Government of Canada for its wonderful new initiatives related to student financial assistance," said Pathways representative Ms. Cathy Brothers. "These initiatives will truly make a difference in the lives of our young people who are pursuing post-secondary education."
As part of the event, Pathways graduate Mr. Mohammed Shafique spoke about how these changes will help those in pursuit of post-secondary education. "The most daunting challenge we face is related to finances," said Mr. Shafique. "That is why programs th at provide financial assistance for low-income students are so important. It opens up doors of opportunity that are otherwise closed to us."
These programs will be implemented for the 2009-2010 school year.
For more information on plannin g and saving for post-secondary education, including material on Budget 2008 initiatives, please visit Canlearn.ca/more.
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Government of Canada Helps Open Doors to Higher Education
On August 25, 2008, the Honourable Monte Solberg, Minister of Human Resources and Social Development, announced changes to student financial assistance that will be in place for the 2009-2010 school year. The measures announced will make post secondary education more affordable and accessible for Canadians. Key initiatives include the following:
Ca nada Student Grant Program
Available to students in fall 2009, the Canada Student Grant program will provide $250 each month in grants to students from low-income families and $100 a month to students from middle-income families. The new gra nt will be paid throughout all of the years of a university undergraduate, college or trade school program. Students from low- and middle-income families will qualify based on clearly defined income levels. The low- and middle-income thresholds will be ad justed to reflect the cost of living in each province and territory for different family sizes.
Complementary grants will be available for students with permanent disabilities and students with dependants. Students with a permanent disability will continue to receive grant assistance similar to what is available through the Canada Access Grants for Students with Permanent Disabilities and the Canada Study Grants for the Accommodation of Students with Permanent Disabilities. Low-income students wit h dependants will receive an improved grant that will provide more money up front ($200 per month for each dependant under 12 years of age).
To be eligible for a Canada Student Grant, the student must qualify for a Canada Student Loan. A single a pplication for both loan and grant will automatically determine the student's eligibility level for the Canada Student Grant. In addition, students may be eligible to receive more than one grant simultaneously.
Repayment Assistance Plan
In the 2009-2010 academic year, a new student loan Repayment Assistance Plan will be in place to make it easier for student loan borrowers to manage their debt by ensuring that they can afford their loan payments.
The Repayment Assista nce Plan is an optional program for students facing difficulty in meeting their student loan payments including those with permanent disabilities. This new Plan will ensure that student loan payments will be affordable, that individuals with very low inco mes will not be required to make payments and that the eligibility criteria will be easier to understand in order to obtain the support they need.
Loan payments will be based on the borrower's income and debt levels. No more than 20 per cent of a borrower's income would go towards the payment of the loan. Furthermore, no borrower will have a repayment period of more than 15 years.
The Repayment Assistance Plan replaces the Interest Relief and Debt Reduction in Repayment programs. Current In terest Relief and Debt Reduction recipients will transition into the new Repayment Assistance Plan.
More effective support for students with permanent disabilities
The Government of Canada is taking action to ensure predictabl e, fair and compassionate support for students with permanent disabilities by making an investment of $20.4 million dollars over the next four years to help these students.
Under these new measures, previous assessments of permanent disability wil l be recognized in determining eligibility for specific debt-management measures so that students do not have to send documentation in repeatedly.
All qualifying student loan borrowers will have access to compassionate loan forgiveness due to perma nent disability during repayment, no matter when their loans were received, and no matter when the disability occurred.
In addition to the new grant assistance for people with permanent disabilities, in the 2009-2010 academic year, an Accelerate d Repayment Assistance Plan will be available to borrowers with a permanent disability. The Canada Student Loans Program will offer repayment assistance designed specifically to meet the unique needs of borrowers with a permanent disability who are experi encing financial difficulty repaying their loans. Due to this assistance, disabled borrowers with low incomes will not be required to make loan payments, and will see their debt gradually written off over a 10 year period. The calculation of their afforda ble payment will include the extra costs that disabled borrowers face, thereby reducing the amount when compared with that of other borrowers.
Improved services to students
Simplifying the delivery of financial assistance will help students get information on their loans and grants, manage their loans, apply for repayment assistance measures and repay their loans.
The Government of Canada, in collaboration with the provinces and territories, plans to begin implementing the following new measures in the 2009-2010 school year:
- Improved on-line services. Students will benefit from new on-line services including viewing up-to-date information on their federal and/or provincial/territorial loans all in one place. There will be a single point of access to important information such as loan status and balance.
- Simplified and streamlined processes. Students will experience a reduction in duplication as more process es are streamlined. Ultimately, students will have one loan agreement, called a Master Loan Agreement, covering all the years in the study period rather than needing to get a new agreement every year. This new Master Loan Agreement will automatically conf irm that students are enrolled in school for future years of study. Students will no longer have to fill out forms every year just to confirm that they are still in school. Students will be able to make a single payment for all federal and/or provincial/t erritorial loans. If they need to, borrowers will also be able to apply for repayment assistance on-line.
- Better coordinated communications. Communications with students will be harmonized to eliminate repetitive and dupl icate correspondence. Clearer communications will help ensure that students:
- will get their loans when they need them; and
- will not jeopardize their credit ratings when the time comes to pay their loans back.
Budget 2008
In Budget 2008, the Government of Canada announced a series of changes to its student financial assistance programs such as the Canada Student Loans Program and Canada Student Grants to improve access to university, colle ge and trade school, and to help students and families manage the cost of post-secondary education. Over the next four years, the Government of Canada will invest $1.7 billion in student financial assistance measures of which $1.6 billion will be invested in new Canada Student Grants, $123 million will be used to streamline and modernize the Canada Student Loans Program, $31 million will be invested in a new service delivery vision including expanded on-line services to enable on-line loan management for students from the time that they submit an application up to the end of their repayment period, and $78 million will be directed to the Repayment Assistance Plan that will base loan payments on a borrower's income and student debt.
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