Debt Reduction Grant Program
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.
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