The Saskatchewan Student Aid Program and Canada Student Financial Assistance Program are making changes that will improve the affordability of student loan repayment and streamline repayment processes.
The Government of Saskatchewan is implementing the measures on Nov. 1, in an attempt to address the rising cost of living for student borrowers.
Enhancing the Repayment Assistance Plan will make loan repayment more affordable for approximately 4,000 Saskatchewan student loan recipients annually.
“This needs-based program will continue to support many Saskatchewan students as they transition to their professional lives,” Advanced Education Minister Gordon Wyant said. “These changes will make student loan repayment more affordable and help improve the quality of life for many of our Saskatchewan student borrowers.”
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Enhancements to the program will include increasing the zero-payment threshold for single borrowers to $40,000 from $25,000.
Repayment income thresholds for larger households will be aligned with the Canada Student Grant income thresholds.
Monthly student loan payment caps will be reduced to 10 per cent of a borrower’s family income from 20 per cent previously.
Repayment income thresholds will be adjusted annually to account for inflation.
Saskatchewan is one of five provinces introducing increased Repayment Assistance Plan thresholds this year.