The Government of Prince Edward Island will forgive the student loans of borrowers who develop a severe disability after borrowing, under measures adopted by the provincial Student Financial Assistance program.
Effective immediately, Student Financial Services will forgive the provincial student loans of individuals who have qualified for the Severe Permanent Disability Benefit under the Canada Student Loan Program. This program applies to persons who develop a permanent disability that prevents them from earning an income.
“We hope this policy will relieve some of the financial stress on students and former students at a difficult time in their lives,” said Minister of Workforce and Advanced Learning Richard Brown. “This new policy will lift the debt load from people whose disabilities prevent them from earning an income, and allow them to focus their energies elsewhere.”
To qualify, the borrower will be asked to fill out an application and to provide proof of the federal ruling. Prior to this decision, the provincial student loans of persons with severe permanent disabilities were eligible for forgiveness but required a ministerial order.
“The Government of Prince Edward Island wants to encourage all Islanders to pursue education and learning. These measures will keep student borrowing from being a burden on clients who have suffered an illness or injury that prevents them from being able to make payments,” said the minister.
“We are pleased that the Department of Workplace and Advanced Learning is streamlining this process. It is important that they recognize that the onset of a disability or the escalation of a disability is a life altering event,” said Marcia Carroll, Executive Director, PEI Council of People with Disabilities. “This new process shows compassion for the borrowers and will encourage Islanders living with disabilities to pursue learning opportunities that will allow them to have meaningful labour market engagement.”
Under the Canada Student Loan Program’s Canada Student Financial Assistance Regulations, a “severe permanent disability” means a functional limitation caused by a physical or mental impairment that: prevents a borrower from performing the daily activities necessary to participate in studies at a post-secondary school level and in the labour force; and is expected to remain with the person for their expected life. Students who apply for, and meet this status under the federal system, will be considered eligible for Severe Permanent Disability Benefits from Prince Edward Island’s Student Financial Services office.
Details on the federal Severe Permanent Disability Benefit are available at www.canlearn.ca/eng/loans_grants/repayment/help/severe_disability.shtml
Prince Edward Island’s Student Financial Services provided students with over $32 million in combined federal and provincial programs in 2014–15 through a combination of over 9,600 loans, grants, and bursaries to Island students.
For more information, please contact Student Financial Services at (902) 368-4640.