Starting life after graduation is no easy task.
Staying financially afloat in Canada’s major cities is near-impossible – just look at the minimum amount of money required to live reasonably in Toronto, Montreal, or Vancouver. Rent is astronomical, but owning your own place is out of reach for all but the richest young professionals.
And that’s on top of the $25,000 the average graduate owes for the privilege of a post-secondary education.
Well, good news, because the Canadian government just made it much easier for students to repay their loans.
As of yesterday, students will be required to start repaying their student debt only when they begin earning over $25,000 a year.
The change will affect around 750,000 Canadian students with debt.
For families of five or more people, the threshold is $67,825.
“As a result of this new measure, students will be better positioned to transition into the workforce after graduation,” said MaryAnn Mihychuk, the minister of employment, workforce development and labor, in a statement.
The government has also lessened the burden of student debt for those struggling to make payments.
Employment and Social Development Canada said that “borrowers who are having difficulty making their monthly Canada Student Loan payments can apply for help through the Repayment Assistance Plan.”
Depending on their financial situation — such as their income and family size — borrowers can get approved for a reduced monthly payment on their Canada Student Loan, or for no monthly payment at all.