You will have a six-month grace period when you graduate, after which you must repay the loan amount plus interest charges to the government.ĬSGP provides students with the federal financial support they don't have to pay back. The applicant should meet the requirements for financial need, and then they could be eligible to get up to 60% of the cost of the tuition in federal loans.Ī government loan has a fixed or variable interest rate. Canada Student Loans Program (CSLP) and Canada Student Grants Program (CSGP) are federal programs from the Canadian government that aim to help you fund your education.ĬSLP is designed for full and part-time students.The governmental programs could be federal and provincial, or territorial. There are two main types of education financial aid in Canada: governmental grants or loans and private student loans or lines of credit. The major differences are the rates, the term, and the presence or absence of the six-month grace period. In Canada, a student loan can be extended by the federal government, a provincial authority, or a private financial institution. Loan balances used for this calculation will be the originally disbursed principal amounts.A student loan refers to the funds you borrow to assist you throughout your college course with education expenses such as books, tuition, living expenses, etc. The % of Discretionary Income will be 5% if you have all undergraduate school loans, 10% if you have all graduate school loans or a weighted average if you have both. SAVE (Starting July 1, 2024): Payments are calculated at between 5% and 10% of Discretionary Income, where Discretionary Income = AGI minus 225% of FPL. SAVE (From October 1, 2023-June 30, 2024): Payments are calculated at 10% of Discretionary Income, where Discretionary Income = AGI minus 225% of FPL. REPAYE/PAYE and IBR for New Borrowers (First loan disbursed on or after July 1, 2014): Payments are calculated at 10% of Discretionary Income, where Discretionary Income = AGI minus 150% of FPL. IBR (Any loans disbursed before July 1, 2024): Payments are calculated at 15% of Discretionary Income, where Discretionary Income = AGI minus 150% of FPL. The percentage of FPL is the amount of income that is protected from any payment. Numbers are adjusted annually for inflation.ĭiscretionary Income = AGI minus a percentage of the Federal Poverty Level (FPL) for a family of your size. Married borrowers: include your spouse if you file your taxes jointly do not include your spouse if you file your taxes separately.įederal Poverty Level (FPL) – An income level used by the federal government to determine certain benefits depending on your family size. Definitions:Īdjusted Gross Income (AGI) – Can be found on line 11 of the IRS 1040 form on tax returns filed in 2021 or 2022.įamily Size – Includes dependent children (including unborn children) and adults who live with you (other than your spouse) for whom you provide more than half support. Please note that numbers above are estimates only. Estimates will be different if you live in Alaska or Hawaii. Starting July 1, 2024, the SAVE plan is sensitive to the split between undergraduate and graduate school loans and are based on the original principal balances. IDR plan calculations are based on the accuracy of the inputs.
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