Debt Reduction Grant Program

If you graduated from a post-secondary program with more than $6,000 in student loan borrowed per year, you may be eligible for a debt reduction grant of up to $2,000 per year of study to help reduce your provincial student loan balance.

Am I eligible for a debt reduction grant?

You may be eligible for the debt reduction grant if you meet the following criteria:

  • Your yearly debt must be more than $6,000 in combined federal and provincial student loans, with at least $100 in provincial student loan.
  • Only student loans for the years you were enrolled in a program from which you graduated are eligible for debt reduction assistance.
  • 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 debt reduction for five years of study only (4+1=5).
  • The amount of debt reduction 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 offered would equal $1,500.

How much money is available?

Up to $2,000 per year of study will be applied directly to you provincial student loan balance. Grants will only be issued for amounts that are greater than $100.

How do I apply for the debt reduction grant?

Within one year after your date of graduation from your program of study, submit the following:

  • A completed Debt Reduction Grant Application;
  • A copy of your degree, diploma, or certificate; and
  • Loan statement balances (dated within the last four weeks) from both National Student Loan Service Centre and Edulinx-PEI.  (Contact information for both lenders is provided on the application form.)

Applications submitted after one year or incomplete applications cannot be processed.

Related forms

PEI Debt Reduction Grant Application

Who can I contact about a debt reduction grant?

Student Financial Services

Department of Workforce and Advanced Learning

176 Great George St., P.O. Box 2000

Charlottetown, PE

C1A 7N8

Telephone: (902) 368-4640

Fax: (902) 368-6144

Email: studentloan@gov.pe.ca

Published date: 
May 20, 2016
Workforce and Advanced Learning

General Inquiries

Student Financial Services
176 Great George Street
2nd Floor, Atlantic Technology Centre
PO Box 2000
Charlottetown, PE   C1A 7N8

Phone: (902) 368-4640

studentloan@gov.pe.ca

The 2017-2018 student loan application is now available.