As part of Canada’s COVID-19 Economic Response Plan, changes were made to provide support to students and other individuals; the suspension of loan repayments and interest on students loans is one of those measures.
What does the student loan moratorium mean?
For students that have borrowed money for school as a part of Canada Student Loans or Canada Apprentice Loans, normally there are repayment plans and interest payments.
With this new measure, the loan repayments and interest are automatically suspended until September 30, 2020.
What qualifies for the moratorium?
- Federal portion of the student loan, unless issued by NL, NB, ON, SK or BC, then it applies to both federal and provincial portion of the loan
- Interest will not be charged from March 30 to September 30, 2020
- If in the “non-repayment” period, federal loans are already interest-free; provincial loans that normally are not, for ON, NB, and SK, will be interest-free for March 30 to September 30, 2020
For more details on income support and other benefits as part of the Federal Government’s Economic Response Plan for COVID-19, click here.
See also our COVID-19: Tax Info Centre, from our TurboTax Support team, answering many FAQs on this topic and more.
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Susan has been an accounting professional for over 20 years, and has been working with businesses and individuals and their taxes for the past 12. Education is a passion for Susan, and when not writing or talking about tax for TurboTax Canada, she can be found speaking at events, teaching at Mohawk College, and working with many businesses and entrepreneurs through her own accounting advisory practice. Susan is known to be approachable but pulls no punches when it comes to the reality of business finance and taxes.