Canada has taken significant steps to ease the financial burden of post-secondary education. In 2025, several key updates have come into effect that benefit current students, recent graduates, and even those already repaying their loans. Here’s a breakdown of the latest updates to Canada student loans and what they mean for you.
1. No More Interest on Federal Student Loans
One of the most impactful changes is the permanent elimination of interest on federal student loans. Since April 2023, all Canada Student Loans and Canada Apprentice Loans have been interest-free, not just for new loans, but also for those already in repayment. This move is going to save borrowers hundreds of dollars annually and make repaying student debt more manageable in the long run.
2. Loan Forgiveness for Healthcare Workers in Rural Areas
To address healthcare shortages in underserved areas, the Canadian government is offering generous loan forgiveness to healthcare professionals working in remote or rural communities. Eligible family doctors can receive up to $60,000 in loan forgiveness over five years, while eligible nurses can have up to $30,000 of their federal student loans forgiven. This initiative aims to support both medical professionals and the communities that need them most.
3. More Grants and Higher Loan Limits for Students
Financial support for current students has also improved. For the 2024–2025 academic year, the maximum Canada Student Grant for full-time students increased from $3,000 to $4,200 annually. Additionally, the weekly loan limit has been from $210 to $300, helping students cover rising tuition and living costs.
These changes are especially beneficial for students from low- and middle-income families, making higher education more accessible.
4. Improved Repayment Assistance
Graduates struggling to meet monthly payments will benefit from updates to the Repayment Assistance Plan (RAP). The income threshold for zero payments has been raised, allowing more low-income borrowers to qualify. Additionally, monthly repayment amounts are now capped at 10% of a borrower’s household income, down from the previous 20%. This ensures that loan repayment is better aligned with borrowers’ ability to pay.
5. New Access System for Student Loan Accounts
Starting May 25, 2025, borrowers will access their student loan information through the My Service Canada Account (MSCA), rather than the National Student Loans Service Centre (NSLSC) portal. This transition aims to streamline the process and improve account security. If you’re a borrower, it’s a good time to ensure your MSCA account is active and linked to your student loan profile.
Conclusion: Canada Student Loans Updates
These changes represent a significant improvement in how student loans are in Canada. Whether you’re still in school or already in repayment, the new policies aim to make higher education more affordable and the repayment process more forgiving.
As the cost of education continues to rise, these initiatives are a welcome relief and show that the government is listening to the concerns of students and graduates alike.
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