The Government of Saskatchewan is helping address the rising cost of living for student borrowers by enhancing the Repayment Assistance Plan. On November 1, the Saskatchewan Student Aid Program and Canada Student Financial Assistance Program are introducing enhancements that will improve 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,” 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.”
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; and
- reducing the monthly student loan payment cap from 20 per cent of a borrower’s family income to 10 per cent.
Saskatchewan is one of five provinces introducing increased Repayment Assistance Plan thresholds this year.
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.