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January 29, 2022

Will Canada mimic U.S. government's student loan forgiveness program?

Recent graduates trapped under a mountain of student loan debt and worrying about interest rates rising in the future may wish they lived across the border.

Under certain circumstances, the U.S. government will forgive the remainder of your federal student loan debt if you work in the public sector or for a registered nonprofit for 10 years and make your payments on time.

The Public Service Loan Forgiveness program is open to indebted students who become police officers, firefighters, emergency medical technicians or public school teachers, for instance.

And they're still not satisfied. Those who haven’t paid off their student loans overwhelmingly want those loans forgiven by their lenders, according to a recent survey released by online research firm, Instant.ly.

In this country, however, you're expected to pay it all back -- unless you're in the medical profession, that is.

Starting April 1, some doctors and nurses will be eligible to apply for partial student loan forgiveness, providing they're willing to relocate to smaller communities with a population of 50,000 or less, including those that provide health services to First Nations, Inuit and Métis populations.

Family doctors and residents in family medicine will be eligible to receive up to $8,000 per year in Canada Student Loan forgiveness to a maximum of $40,000 over five years; nurses and nurse practitioners will be eligible to receive up to $4,000 per year to a maximum of $20,000 over five years.

Click here for more details.

Would you like to see a similar program here in Canada? Or at least one that moves beyond the medical profession?

By Gordon Powers, MSN Money




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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...