6 Things Students In Canada Should Know About For 2023 Including Loan Repayments & Tax Credits
Post-secondary students at Canadian universities and colleges can take advantage of so many benefits from the government of Canada right now.
Since there have been a lot of changes to student aid in Canada recently because of the federal government's 2022 Budget and 2022 Fall Economic Statement, students might not be aware of all the help they can get.
So, here's what current students — and even recent graduates — in Canada should know about loan forgiveness, repayments, tax credits and more for 2023.
Loan forgiveness for family doctors and nurses
The federal government is increasing loan forgiveness for doctors and nurses working in rural communities starting in 2023.
Nurses could qualify for up to $30,000 in loan forgiveness while doctors could get up to $60,000.
Also, the federal government will be expanding the list of eligible professionals for this loan forgiveness program and reviewing how "rural communities" is defined so the program doesn't leave out those in need.
Suspension of interest
If you have Canada Student Loans or Canada Apprentice Loans, there will continue to be no interest charged on your loan until March 31, 2023.
Doubling of student grants
The federal government has extended the doubling of student grants until the end of July 2023 which means full-time students can get up to $6,000 in non-repayable aid.
Also, students are able to use their current year's income instead of the previous year's income to determine their eligibility for grants.
Lowering of loan repayment threshold
Changes to the Repayment Assistance Plan came into effect on November 1, 2022.
So, now, a person living alone doesn't have to make repayments on their student loans until they're earning $40,000 a year.
Maximum payments have been lowered from 20% to 10% of household income as well.
Tax credits for student loans
You get a 15% tax credit on the interest you pay on your student loans each year and it applies to interest payments on both federal and provincial or territorial student loans.
You can get your T4A documents and statements for your taxes in your National Student Loans Service Centre account at the start of every calendar year.
Scrapping federal student loan interest
The government is planning to scrap interest on all new federal student loans and apprentice loans, as well as existing loans that are currently being repaid.
If given Royal Assent, it would come into effect on April 1, 2023, the day after the freeze on student loan interest ends.
Student loan interest forgiveness would save $410 per year for the average student borrower in 2023.
This article's cover image was used for illustrative purposes only.
