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Debt Reduction

Prince Edward Island Debt Reduction Grant Program

Type of assistance:  Provincially funded non-repayable grant.

Maximum assistance:  Up to $2,000 per year of study, with the maximum funding based on the required length of the program plus 1 year. The grant will be paid following a student's year of graduation, and is applied against the Prince Edward Island Student Loan balance. You must apply for this grant within 1 year from your graduation date. The PEI Debt Reduction Grant Application form is available online. For further information contact Student Financial Services.

Students are eligible for debt reduction if:
  • Your combined Canada and Prince Edward Island Student Loan exceeds the minimum annual debt level of $6,000. Only those years with debt higher than $6,000 with at least $100 of provincial funding will be included. The student loan year for debt reduction coincides with the Prince Edward Island Student Loan year of May 1 to April 30.
  • Eligible years for debt reduction are only those in which you were enrolled in the program from which you graduated.

    1. The maximum debt reduction grant is $2,000 per year, based on the minimum required length of a program plus one year.
    2. Overawards calculated during your year(s) of study will be deducted and will reduce or eliminate your debt reduction grant.
    3. Grants will only be issued for amounts that are greater than $100.

Students must apply for this grant. Completed applications should be submitted no later than sixty days after the completion of a student's program (i.e. the month during which a student has ceased to be in full-time studies). This will ensure that processing and payments can be forwarded to the lender prior to loan consolidation/repayment. The deadline for applying for debt reduction is one year after the completion of a student’s program. This deadline is strictly enforced.

Debt Reduction Grants will be calculated as follows:


The maximum Debt Reduction Grant per year is $2,000. The grant application will be processed after your final year of study and will consider all eligible years, in which net loan exceeds $6,000 per year.

Example (assuming graduation from a 4 year program)
Year
Calculated Need
Distribution
Prince Edward Island Debt Reduction
CSL
PEISL
 
1
$7,140
$7,140
$0
$0
2
$8,530
$7,140
$1,390
$1,390
3
$10,530
$7,140
$3,390
$2,000
4
$12,750
$7,140
$5,610
$2,000
 
 
 
Total
$5,390

  • CSL = Canada Student Loans
  • PEISL = P.E.I. Student Loans 
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