The Government of Canada Helps Open Doors to Higher Education

Market Wire, August, 2008

It's getting easier to keep learning! Canadians interested in pursuing post-secondary education will now have access to more opportunities then ever, as details of the recent changes to student financial assistance were unveiled.

The Honourable Monte Solberg, Minister of Human Resources and Social Development announced the changes at Kitchener's Pathways to Education Program.

"Because of the changes our Government has introduced, the dream of a post secondary education will be open to every Canadian regardless of their level of income," said Minister Solberg. "What a tremendous opportunity for students and for their potential, and what a powerful advantage for Canada."

The changes in student financial assistance programs include a new up-front Canada Student Grant of $250 per month for students from low-income families and $100 per month from students from middle-income families; a new repayment plan to help students who are having difficulty paying back their student loans, as well as improved services for students to simplify the whole loan process; and greater support for students with permanent disabilities.

"We congratulate the Government of Canada for its wonderful new initiatives related to student financial assistance," said Pathways representative Ms. Cathy Brothers. "These initiatives will truly make a difference in the lives of our young people who are pursuing post-secondary education."

As part of the event, Pathways graduate Mr. Mohammed Shafique spoke about how these changes will help those in pursuit of post-secondary education. "The most daunting challenge we face is related to finances," said Mr. Shafique. "That is why programs that provide financial assistance for low-income students are so important. It opens up doors of opportunity that are otherwise closed to us."

These programs will be implemented for the 2009-2010 school year.

For more information on planning and saving for post-secondary education, including material on Budget 2008 initiatives, please visit Canlearn.ca/more.

This news release is available in alternative formats upon request.

BACKGROUNDER

Government of Canada Helps Open Doors to Higher Education

On August 25, 2008, the Honourable Monte Solberg, Minister of Human Resources and Social Development, announced changes to student financial assistance that will be in place for the 2009-2010 school year. The measures announced will make post-secondary education more affordable and accessible for Canadians. Key initiatives include the following:

- Canada Student Grant Program

Available to students in fall 2009, the Canada Student Grant program will provide $250 each month in grants to students from low-income families and $100 a month to students from middle-income families. The new grant will be paid throughout all of the years of a university undergraduate, college or trade school program. Students from low- and middle-income families will qualify based on clearly defined income levels. The low- and middle-income thresholds will be adjusted to reflect the cost of living in each province and territory for different family sizes.

Complementary grants will be available for students with permanent disabilities and students with dependants. Students with a permanent disability will continue to receive grant assistance similar to what is available through the Canada Access Grants for Students with Permanent Disabilities and the Canada Study Grants for the Accommodation of Students with Permanent Disabilities. Low-income students with dependants will receive an improved grant that will provide more money up front ($200 per month for each dependant under 12 years of age).

To be eligible for a Canada Student Grant, the student must qualify for a Canada Student Loan. A single application for both loan and grant will automatically determine the student's eligibility level for the Canada Student Grant. In addition, students may be eligible to receive more than one grant simultaneously.

- Repayment Assistance Plan

In the 2009-2010 academic year, a new student loan Repayment Assistance Plan will be in place to make it easier for student loan borrowers to manage their debt by ensuring that they can afford their loan payments.

The Repayment Assistance Plan is an optional program for students facing difficulty in meeting their student loan payments including those with permanent disabilities. This new Plan will ensure that student loan payments will be affordable, that individuals with very low incomes will not be required to make payments and that the eligibility criteria will be easier to understand in order to obtain the support they need.

Loan payments will be based on the borrower's income and debt levels. No more than 20 per cent of a borrower's income would go towards the payment of the loan. Furthermore, no borrower will have a repayment period of more than 15 years.

The Repayment Assistance Plan replaces the Interest Relief and Debt Reduction in Repayment programs. Current Interest Relief and Debt Reduction recipients will transition into the new Repayment Assistance Plan.