Prince Edward Island is making changes to its student loan program that will see an increase to the maximum amount of money available and the grace period students have before they must repay their loans.
For the 2016-2017 academic year, the weekly maximum student loan available will be increased to $175 from $165 per week. From 2017-2018 onward, the maximum weekly loan will increase according to inflation and will be indexed to the consumer price index.
The grace period before students are required to begin repaying their student loans will also be extended from six months to one year.
A P.E.I. Student Loan Rehabilitation Program was also introduced that provides a way for those who have defaulted on their student loan payments to bring their defaulted loans back into good standing.
These changes are designed to provide benefits to students such as: interest-free status, de-registration from the Canada Revenue Agency’s Refund Set-Off Program; a potential credit rating improvement; and eligibility to apply for further PEI student financial assistance.
Workforce and Advanced Learning Minister Richard Brown says “we are aware that student debt is a significant issue for many students who are concerned about repayment options and flexibility regarding their student loans. These changes will help ease the burden on students and offer greater flexibility to ensure students are focusing their attention on their studies.”
For more information, contact Student Financial Services at (902) 368-4640 or visit www.studentloan.pe.ca