WEB Canada Student Loans Persistent or Prolonged Disability
Increased Maximum Amount Forgivable
Effective November 2023, the Government of Canada has increased the maximum amount forgivable by 50%. This means that students who have been approved for disability forgiveness will now be eligible to have up to $40,000 of their student loans forgiven. This is a significant increase from the previous maximum of $26,500.
Eligibility for Forgiveness
To be eligible for disability forgiveness, students must meet the following criteria:
- Be a Canadian citizen or permanent resident.
- Have a severe and prolonged disability that prevents them from working.
- Have received Canada Student Loans for at least 12 months.
Students who meet these criteria can apply for disability forgiveness through the National Student Loans Service Centre (NSLSC).
Expansion of Forgiveness Program
In addition to increasing the maximum amount forgivable, the government has also expanded the forgiveness program to include family doctors and nurses. This means that students who are enrolled in a family medicine or nursing program can now apply for disability forgiveness even if they have not yet graduated.
Zero-Payment Income Threshold
As of November 1, 2022, the zero-payment income threshold for Canada Student Loans and Canada Apprentice Loans has increased to $50,000. This means that borrowers who earn less than $50,000 per year will not have to make any payments on their student loans.
These changes to the Canada Student Loans program are designed to make it easier for students to repay their loans and to pursue their education. If you are a student who is struggling to repay your student loans, you should contact the NSLSC to learn more about your options.
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