The Government of Canada Helps Open Doors to Higher Education

Market Wire, August, 2008

- More effective support for students with permanent disabilities

The Government of Canada is taking action to ensure predictable, fair and compassionate support for students with permanent disabilities by making an investment of $20.4 million dollars over the next four years to help these students.

Under these new measures, previous assessments of permanent disability will be recognized in determining eligibility for specific debt-management measures so that students do not have to send documentation in repeatedly.

All qualifying student loan borrowers will have access to compassionate loan forgiveness due to permanent disability during repayment, no matter when their loans were received, and no matter when the disability occurred.

In addition to the new grant assistance for people with permanent disabilities, in the 2009-2010 academic year, an Accelerated Repayment Assistance Plan will be available to borrowers with a permanent disability. The Canada Student Loans Program will offer repayment assistance designed specifically to meet the unique needs of borrowers with a permanent disability who are experiencing financial difficulty repaying their loans. Due to this assistance, disabled borrowers with low incomes will not be required to make loan payments, and will see their debt gradually written off over a 10-year period. The calculation of their affordable payment will include the extra costs that disabled borrowers face, thereby reducing the amount when compared with that of other borrowers.

- Improved services to students

Simplifying the delivery of financial assistance will help students get information on their loans and grants, manage their loans, apply for repayment assistance measures and repay their loans.

The Government of Canada, in collaboration with the provinces and territories, plans to begin implementing the following new measures in the 2009-2010 school year:

  - Improved on-line services. Students will benefit from new on-line
    services including viewing up-to-date information on their federal
    and/or provincial/territorial loans all in one place. There will be a
    single point of access to important information such as loan status and
    balance.

  - Simplified and streamlined processes. Students will experience a
    reduction in duplication as more processes are streamlined. Ultimately,
    students will have one loan agreement, called a Master Loan Agreement,
    covering all the years in the study period rather than needing to get a
    new agreement every year. This new Master Loan Agreement will
    automatically confirm that students are enrolled in school for future
    years of study. Students will no longer have to fill out forms every
    year just to confirm that they are still in school. Students will be
    able to make a single payment for all federal and/or
    provincial/territorial loans. If they need to, borrowers will also be
    able to apply for repayment assistance on-line.

  - Better coordinated communications. Communications with students will be
    harmonized to eliminate repetitive and duplicate correspondence.
    Clearer communications will help ensure that students:

     - will get their loans when they need them; and

     - will not jeopardize their credit ratings when the time comes to pay
       their loans back.