Debt Reduction Grant Program

With the recently announced increases in the debt reduction program, students are eligible for up to $3500 per year of study in debt reduction, starting in the 2018-2019 academic year. To qualify for the increased debt reduction, apply for debt reduction using the form below within three years of graduation.

Students who graduated from a post-secondary program prior to the 2018-2019 academic year, with more than $6,000 in student loan borrowed per year, may be eligible for a debt reduction grant 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. Starting in the academic year 2018-2019, the maximum grant will increase to up to $3500 per year of study.

How do I apply for the debt reduction grant?

Within one year after your date of graduation from your program of study (or three years if you graduate in 2018-2019), 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
Charlottetown, PE C1A 7N8
Telephone: (902) 368-4640
Fax: (902) 368-6144


Published date: 
April 16, 2018
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

The 2017-2018 student loan application is now available.