Canada Makes It Easier to Repay Student Loans

Students won't have to repay debt until they reach a minimum income level
By Daniel Kay,  Newser Staff
Posted Oct 31, 2016 9:39 PM CDT
Canada Makes It Easier to Repay Student Loans
Students embrace as they prepare for a college graduation ceremony.   (AP Photo/Mel Evans)

Canada's about to make it a lot easier for low-earning graduates to repay their college debt, Global News reports. A new plan allows those earning less than CAD $25,000 (USD $18,650) per year to defer payment on government loans until they secure a higher-paying job. Almost 750,000 young Canadians have some sort of student debt to deal with, Quartz reports. The new program will only apply to government-issued Canada Student Loans.

The average Canadian student graduating college with student debt owes CAD $26,819 (approximately $20,000 in US dollars), according to the International Business Times. That's not bad compared to US students, who are graduating with an average debt of $35,000 these days. Canadians also pay about half as much in tuition costs as Americans do, on average. But that doesn't mean student debt isn't a burden to young Canadians—the National Post reports that universities are increasing mental-health services on campus, as the stress can silently eat away at some students. (More money stories.)

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