Canadian Student Loan Changes: Interest Payments Eliminated, Grants Increased

Government Announces Relief for Borrowers

In a move that will provide significant financial relief to students, the Canadian government has eliminated interest payments on Canada Student Loans and Canada Apprentice Loans. This measure was announced in the recently released 2023 budget, which also proposes to increase Canada Student Grants by 40%.

Benefits for Students

The elimination of interest payments will save students thousands of dollars over the life of their loans. For example, a student with a $30,000 loan who graduated in 2023 would have saved over $2,000 in interest under this new policy. The increased grant funding will also provide additional support for students from low-income families.

How to Apply for Relief

If you have already paid interest on your student loan in 2023, your Tax Receipt and annual statement will be available in your online account. You do not need to apply for this relief. The elimination of interest payments will be applied automatically to your account. To apply for student loans in Canada, you must: * be a Canadian citizen or permanent resident * be enrolled in a recognized post-secondary program * demonstrate financial need You can apply for student loans through the National Student Loans Service Centre (NSLSC).