The Government of Saskatchewan is looking to help address the rising cost of living for student borrowers by enhancing their Repayment Assistance Plan.
On November 1, the Saskatchewan Student Aid Program and Canada Student Financial Assistance Program are introducing enhancements that will improve the affordability of student loan repayment and streamline repayment processes.
"This needs-based program will continue to support many Saskatchewan students as they transition to their professional lives," said Advanced Education Minister Gordon Wyant, "These changes will make student loan repayment more affordable and help improve the quality of life for many of our Saskatchewan student borrowers."
Enhancements to the Repayment Assistance Plan will make repayment more affordable for approximately 4,000 Saskatchewan student borrowers annually by:
- Increasing the zero-payment threshold for single borrowers from $25,000 to $40,000.
- Aligning repayment income thresholds for larger households with the Canada Student Grant income thresholds.
- Adjusting repayment income thresholds annually to account for inflation.
- Reducing the monthly student loan payment cap from 20 per cent of a borrower's family income to 10 per cent.
Introduced in 2009, the Repayment Assistance Plan is targeted at low-income borrowers in Saskatchewan. Eligible applicants may qualify for reduced payments or no payments at all. Through this program, the province mitigates student loan defaults and provides financial assistance to the student borrowers who need it the most.
This year, the Government of Saskatchewan will provide over $102.6 million in financial assistance to more than 20,000 students.