April 7, 2020
Student Loan Repayments Suspended to Lessen Cost Burden during Pandemic
– – –Post-Secondary Students Need Financial Break Amid Economic Difficulties Created by COVID-19: Eichler
The province is suspending repayment of Manitoba Student Aid loans for six months to reduce the financial burden on post-secondary students during the COVID-19 pandemic, Premier Brian Pallister and Economic Development and Training Minister Ralph Eichler announced today.
“During these uncertain times, Manitobans need to pull together to help each other,” said Pallister. “While people, businesses and organizations across our province co-operate to try to flatten the curve on COVID-19 and reduce its spread, it’s important that our government also do its part to assist those carrying a heavier financial burden during this public health emergency. With this suspension of loan repayments, we are giving a helping hand to Manitobans who have invested in post-secondary education.”
Effective April 1, the Department of Economic Development and Training has suspended all repayments of loans under the Manitoba Student Aid Program through Sept. 30. The temporary stoppage of repayments parallels a similar suspension put in place by the federal government under the Canada Student Loan Program, also through Sept. 30.
Manitoba Economic Development and Training had been scheduled to receive a total of about $1 million in repayments on April 1 from Manitoba Student Aid borrowers. The suspension of repayments from April 1 through Sept. 30 will defer the collection of up to $7 million for 2020-21.
“Manitobans carrying student loan debt have become vulnerable to programming and labour market changes resulting from COVID-19,” said Eichler. “This deferral of loan repayments is going to significantly lessen the hardship for them, at a time when they really need it.”
Manitoba Student Aid loan disbursements, including tuition and grant payments, will continue to be made to students as scheduled while repayments are suspended. During the deferral period, the program will accept payments from borrowers who choose to repay loans through cheque or electronic fund transfers.
The overall impact of COVID-19 on Manitoba Student Aid will be assessed as the situation evolves.
Meanwhile, the province continues to rely on the recommendations of the chief provincial public health officer during the pandemic, and encourages all Manitobans to engage in social distancing protocols and the three Ps – protect yourself, protect your loved ones and protect your community. For more information visit www.manitoba.ca/covid19.
A comprehensive list of Manitoba government COVID-19 measures can be found at: https://manitoba.ca/bg/2020/04/covid19.html.
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