The newly harmonized federal-provincial student-loan program will give financially strapped students more time to repay their debts.
Under guidelines announced yesterday by Colleges and Universities Minister Dianne Cunningham, any student-loan recipient who is unemployed or considered low-income will be eligible for up to 54 months without interest or payments. The previous limit was 30 months. After the 54 months expire, a student who still cannot repay the loan can apply to have the debt reduced by up to $10,000.
"We believe that students should contribute a reasonable portion of the cost of their postsecondary education, but we recognize that some will need additional assistance as they begin to build their careers," Ms. Cunningham said.
The new rules are a direct result of a deal reached this summer to integrate the Ontario and federal student-loan programs.
Erin McCloskey, a University of Western Ontario student and president of the Ontario Undergraduate Student Alliance, said the extension is a positive step.
But she said it does not address the larger issues of soaring tuitions and rising student debt.
"There's an overall rise in debt load but still the same amount of money available from the provincial government, if not less."