Grant Name: Debt Reduction Grant Program
Status:
Currently accepting applications
Deadline:
N/A
Description
Students graduating from a post-secondary program with more than $6000 in federal and provincial student loans borrowed per year may be eligible for a debt reduction grant to help reduce their provincial student loan balance.
Eligibility
You may be eligible for the debt reduction grant if you meet the following criteria:
| Debt Reduction Grant Eligibility | ||
| Criteria | Academic years prior to August 1, 2018 |
Academic years after July 31, 2018 |
| You have graduated from your program, earning either a degree, diploma, or certificate. | yes | yes |
| Your yearly debt must be more than $6,000 in combined federal and provincial student loans, with at least $100 in provincial student loan. | yes | yes |
| Only provincial student loans for the years you were enrolled in a program from which you graduated are eligible for debt reduction assistance. | yes | yes |
| Year of study is based on the minimum required length of the program, plus one year. For example, if you require six years to complete a four-year program, you are eligible for a debt reduction grant for only five years of study (4+1=5). | yes | yes |
| The amount of debt reduction grant cannot exceed the amount of provincial student loan for that year. For example, if you borrowed $1,500 in provincial student loan during one year, the maximum amount of debt reduction grant offered would equal $1,500. | yes | yes |
| Proof of residency: You must provide proof that you have lived in PEI for at least six months immediately preceding your application for this grant. | no | yes
New: see note below |
Note: Academic year refers to a program of study that starts between August 1 and July 31 of the following calendar year, i.e. every August 1st a new academic year begins
How to Apply?
For academic years prior to August 1, 2018
If you graduated in an academic year that began prior to August 1, 2018, the application deadline is within one year after your date of graduation from your program of study. As part of the application process, you will be required to submit the following:
- A complete Debt Reduction Grant application (see link below);
- A copy of your degree, diploma, or certificate; and
- Loan statement balances (dated within the last four weeks) from both the National Student Loan Service Centre and Edulinx-PEI. Contact information for both lenders is provided in the application form.
For academic years after July 31, 2018
If you graduated in an academic year that began after July 31, 2018, the application deadline is three years after your date of graduation from your program of study. In addition to the above-noted requirements, you must also prove that you were a PEI resident for a minimum of six months immediately preceding your application. Examples of acceptable proof of residency are listed above.
Applications submitted after the respective deadlines noted above or incomplete applications cannot be processed.
Funding Amount
For academic years that commenced prior to August 1, 2018, a grant of up to a maximum of $2000 per year of study may be applied directly to your provincial student loan balance. To be eligible, the applicant must have graduated from a program of study within one year immediately preceding the application.
Effective March 31,2019, for academic years that commenced after July 31, 2018, a grant of up to a maximum of $3,500 per year of study may be applied directly to your provincial student loan balance. To be eligible, the applicant must have graduated from a program of study within three years immediately preceding the application and be a resident of PEI (as set out above).
Debt reduction grants will only be issued for provincial student loan amounts greater than $100 per academic year.
Scenario A
Student began a four-year program in 2015/16 and met all the requirements at the time of application:
| How much money may be available? Scenario A | ||||
| Academic Year | Calculated Need | Distribution CSL | Distribution PEISL | PEI Debt Reduction |
| 2015/16 | $7,140 | $7,140 | 0 | 0 |
| 2016/17 | $8,530 | $7,140 | $1,390 | $1,390 |
| 2017/18 | $10,530 | $7,140 | $3,390 | $2,000 |
| 2018/19* | $12,750 | $7,140 | $5,610 | $3,500* |
| $6,890 total | ||||
| CSL= Canada Student Loan; PEISL= PEI Student Loan; * met residency criteria |
Scenario B
Student began a four year program in 2018/19 and met the above requirements at the time of application:
| How much money may be available? Scenario B | ||||
| Academic Year | Calculated Need | Distribution CSL | Distribution PEISL | PEI Debt Reduction |
| 2018/19 | $7,140 | $7,140 | 0 | 0 |
| 2019/20 | $8,530 | $7,140 | $1,390 | $1,390 |
| 2020/21 | $10,530 | $7,140 | $3,390 | $3,390 |
| 2021/22 | $12,750 | $7,140 | $5,610 | $3,500 |
| $8,280 total |
Contact Information
NA
Processing Fee
N/A
Location/Classification
Prince Edward Island
Students