By Martin Allen [1]
BELLEVILLE – Good news for people with student debt.
As of November 1, Canadian students don’t have to start paying back their student loans until they’re earning at least $25,000 a year.
“The future prosperity of our country depends on young Canadians getting the education they need to succeed in the job market,” said federal Minister of Employment Mary Ann Mihychuk in a news release.
“As a result of this new measure, students will be better positioned to transition into the workforce after graduation.”
In 2013, over 700,000 people in Canada had student debt according to the government of Canada.
Nik Ignatov, a second-year radio student at Loyalist College, says he hopes this will provide some much needed relief.
“College is expensive enough as it is,” he says. “I’m on two student lines of credit and OSAP. By the time I’m finished post-secondary education I’ll be looking at north of $40,000 in student debt.”
Ignatov hadn’t heard the news yet, but was ecstatic when he found out he’d have some breathing room after college to pay off his debt.
“It’s good, absolutely,” he laughed. “That’s incredible, because student loans are such a ball and chain as it is.”
The new measure is part of the government’s 2016 budget.