Student Loan Forgiveness in Canada: A Comprehensive Guide
Eligibility Conditions for CSL Forgiveness
The eligibility criteria for the Canada Student Loan (CSL) forgiveness benefit are outlined in section 29 of the Canada Student Financial Assistance Act (CSFAA).
Zero-Payment Income Threshold
As of November 1, 2022, the zero-payment income threshold for CSL and Canada Apprentice Loans (CAL) is as follows:
- For single borrowers: $44,000 per year
- For borrowers with a spouse or common-law partner: $53,000 per year
Persistent or Prolonged Disability
Borrowers who have a permanent or long-term disability may qualify for CSL forgiveness through the Persistent or Prolonged Disability (PPD) program.
BC Loan Forgiveness Program
British Columbia offers a loan forgiveness program for eligible residents. The program covers up to $7,500 of federal and provincial student loans for those who work in designated high-needs fields.
Elimination of Loan Interest
In April 2022, the Canadian government eliminated interest on CSL and CAL for new and existing borrowers.
Other Forgiveness Options
Apart from the programs mentioned above, there are other ways that student loans can be forgiven in Canada, including:
- National Student Loans Service Centre (NSLSC) Repayment Assistance Plan (RAP)
- Provincial student loan forgiveness programs
- Private student loan forgiveness options
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