/R E P E A T -- Post-secondary students can now pursue their careers with more money in their pockets/ Français
CALGARY, Sept. 15, 2016 /CNW/ - The Government's commitment to strengthening Canada's middle class and helping those working hard to join it means making post-secondary education more affordable for students.
Today, the Honourable Kent Hehr, Minister of Veterans Affairs, Associate Minister of National Defence and Member of Parliament for Calgary Centre, on behalf of the Honourable MaryAnn Mihychuk, Minister of Employment, Workforce Development and Labour, joined students at Mount Royal University to talk about the increases to Canada Student Grants and enhancements to the Government's Repayment Assistance Plan.
Minister Hehr told Mount Royal students that as of August 1, the Government is providing more money for tuition for over 35,000 students in Alberta. Canada Student Grant amounts have been increased by 50 percent:
- from $2,000 to $3,000 per year for full-time students from low-income families;
- from $800 to $1,200 per year for full-time students from middle-income families; and
- from $1,200 to $1,800 per year for part-time students from low-income families.
More broadly, combined grants and loans of up to $18,000 will cover the cost of pursuing post-secondary education in Alberta for the average full-time undergraduate student from a low-income family.
Minister Hehr also highlighted that, beginning November 1, no single Canadian will be required to make any repayment on education loans until she or he is earning at least $25,000, thanks to the Government easing rules for Canada's Repayment Assistance Plan.
Thanks to these new measures, students are getting financial relief that will allow them greater access to post-secondary education, and the ability to start their careers not only with the skills they need, but with more money in their pockets.
Quotes
"Our government recognizes the importance of our young Canadians. They are our future and that is why we are making this important investment in student financial assistance, so that Canadian students can access and afford post-secondary education and pursue the careers they want. This is part of our government's commitment to strengthening the middle class and helping those working hard to join it."
– The Honourable Kent Hehr, Minister of Veterans Affairs and Associate Minister of National Defence, and Member of Parliament for Calgary Centre
"Education is the key to future success and prosperity. Our investments are making post-secondary education more affordable and more accessible for students. It's going to help grow the Canadian middle class and help Canadians get the skills and experience they need for good jobs."
– The Honourable MaryAnn Mihychuk, Minister of Employment, Workforce Development and Labour
"Every student, no matter their financial circumstances, deserves an opportunity to realize their dreams and embark on a successful career. I'm very pleased that Alberta's students will have an even greater level of financial assistance when combining our robust student aid program and this expanded grant and repayment package from the Federal Government."
–The HonourableMarlin Schmidt, Alberta Minister of Advanced Education
"With the cost of education, students need a whole host of supports. The Students' Association at Mount Royal University values student loans and grants, and builds programs to ensure students can access all services available to them."
– Shifrah Gadamsetti, President, Students' Association of Mount Royal University
Quick Facts
- Budget 2016 provided the first significant increase to Canada Student Grants and the Repayment Assistance Plan income thresholds since 2009.
- Increases to Canada Student Grants are expected to benefit 35,100 students from Alberta.
- Over 2,300 students at Mount Royal University received Canada Student Grants during the 2013–2014 school year.
- The increase to Canada Student Grants will provide additional assistance of $1.53 billion over five years.
- The increase to the Repayment Assistance Plan eligibility thresholds will provide additional assistance of $131.4 million over five years.
- According to Statistics Canada, over a 20-year period, students with a bachelor's degree will earn between $442,000 and $728,000 more than someone with only a high school diploma.
Associated Links
Budget 2016
Canada.ca/Student-Financial-Assistance
Student Financial Assistance Estimator
Backgrounder
BUDGET 2016 – Making Post-Secondary Education More Affordable
Enhancing Canada Student Grants
Canada Student Grants (CSGs) provide up-front, non-repayable financial assistance to low- and middle-income students and students with permanent disabilities or dependents. Eligibility is assessed at the time the student applies for student loans.
Budget 2016 proposed to increase CSG amounts by 50 percent:
- from $2,000 to $3,000 per year for full-time students from low-income families;
- from $800 to $1,200 per year for full-time students from middle-income families; and
- from $1,200 to $1,800 per year for part-time students from low-income families.
Increasing the CSGs would benefit over 350,000 students across Canada: approximately 247,000 low-income students; 100,000 middle-income students; and 16,000 part-time students per year. This measure will provide assistance of $1.53 billion over five years, starting in 2016–17.
Budget 2016 also proposed to expand eligibility for CSGs to help even more students receive non-repayable assistance through an investment of $790 million over four years. The new eligibility thresholds are expected to be in place for the 2017–18 academic year, following consultations with provinces and territories. Under the new model, the existing low- and middle-income thresholds will be replaced with a single progressive threshold under which grant amounts will gradually decline based on income and family size.
Repayment Assistance Plan
For Canada Student Loan borrowers having difficulty making their payments following their studies, the Repayment Assistance Plan (RAP) can offer help. The RAP makes it easier for borrowers to manage their student loans by paying back what they can reasonably afford, based on their family income and size. Students must apply for the RAP in order to receive this support.
Since its introduction in 2009, the Repayment Assistance Plan income thresholds, which currently begin at $20,210 (gross income), have not been adjusted and do not reflect minimum wage increases.
- In Alberta, for instance, $8.80/hour in 2009 amounted to a yearly salary of $18,304 at 40 hours/week. However, the increase to $11.20/hour by 2015, amounted to a yearly salary of $23,296, which is above the current minimum affordable payment threshold.
Budget 2016 proposed to increase the loan repayment threshold under the Canada Student Loans Program's Repayment Assistance Plan to ensure that no borrower who applies will have to repay their Canada Student Loan until they are earning at least $25,000 per year. This income threshold is for a single individual; for other family sizes, see the table below. Students earning more than this amount may also be eligible for reduced payments. Students who think they may face difficulties repaying their loans should contact the National Student Loans Service Centre to learn more. This measure will provide assistance of $131.4 million over five years, starting on November 1, 2016.
| Annual Family Gross Income Thresholds for RAP Zero Payment by Family Size |
|||
| Family Size |
Current RAP Thresholds |
RAP Thresholds as of Nov. 1 |
Percentage Change |
| 1 |
$20,210 |
$25,000 |
23.7% |
| 2 |
$31,570 |
$39,052 |
23.7% |
| 3 |
$40,790 |
$50,457 |
23.7% |
| 4 |
$48,110 |
$59,512 |
23.7% |
| 5+ |
$54,830 |
$67,825 |
23.7% |
Provincial and territorial information for Canada Student Loans and Grants
The Government of Canada works with most provincial or territorial governments to deliver federal and provincial student loans and grants.
- In Ontario, British Columbia, Saskatchewan, New Brunswick, and Newfoundland and Labrador the Government of Canada and the provincial governments work together to provide financial assistance through Integrated Student Loans and Grants.
- In Alberta, Manitoba, Nova Scotia and Prince Edward Island, Canada Student Loans and Grants are available alongside provincial or territorial student financial assistance.
- In Yukon, only Canada Student Loans and Grants and territorial grants are available only to permanent residents of the Yukon.
Non-participating jurisdictions
Quebec, Nunavut, and the Northwest Territories chose not to participate in the Canada Student Loans Program and receive an alternative payment from the Government of Canada to administer their own student financial assistance measures.
Alberta
Although the Government of Canada directly finances federal student loans, Alberta processes Canada Student Loans Program (CSLP) applications and conducts eligibility assessments for Canada Student Loans and Grants alongside provincial student loans and grants. Up to 60 percent of an Alberta student's demonstrated financial need is covered by the CSLP, with Alberta covering the remaining need through Student Aid Alberta, up to a stipulated maximum amount.
The CSLP and Alberta, alongside other provinces and territories, work closely together to improve the coordination of federal and provincial programs, to improve student financial assistance, and to respond to the needs of students.
SOURCE Employment and Social Development Canada
Contacts : Carlene Variyan, Director of Communications, Office of the Hon. MaryAnn Mihychuk, Minister of Employment, Workforce Development and Labour, [email protected], 819-654-5611; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]
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