COVID-19, CRA & Revenu Québec, Tax News

Student Loan Moratorium

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.