In the recent 2022 Fall Economic Statement, the Government of Canada highlighted its plan to continue its sound stewardship of the economy and to be there for Canadians. To help families cope with increasing costs, like rising prices at the checkout counter. The government is delivering targeted support to the Canadians who need it the most, including by: doubling the GST Credit for 11 million eligible Canadians; enhancing the Canada Workers Benefit to support 4.2 million Canadians; and making federal student and apprentice loans permanently interest free for the graduates of today and tomorrow.
Today, Minister of Labour, Seamus O'Regan Jr., spoke with students and faculty at New Brunswick Community College in Saint John to highlight the government's support for students and apprentices with their plan to permanently eliminate interest on federal student loans and apprentice loans, double the Canada Student Grant, and help young people gain valuable work experience.
With life becoming more expensive for many recent graduates, the government is taking new, permanent steps to reduce the burden of student loans on young Canadians so they can invest in building their futures. The 2022 Fall Economic Statement proposes to make the federal portion of all Canada Student Loans and Canada Apprentice Loans permanently interest-free, including those currently being repaid.
Permanently Eliminating Interest on Federal Student Loans will directly benefit student and apprentice loan borrowers who have left school and are currently repaying their loans, as well as post-secondary students with federal loans who will enter repayment in the future.
To further support students, the government is also proposing doubling the Canada Student Grant to provide up to $6,000 per year until July 2023.
In addition, investments in the Youth Employment and Skills Strategy will help set up young Canadians for success in the job market after leaving school. This will create job placements, a portion of which will directly benefit First Nations youth, as well as wraparound supports for young people facing employment barriers.
The Canadian economy faces global headwinds from a position of fundamental strength: an unemployment rate near its record low-over 500,000 more Canadians are working today than before the pandemic-the strongest economic growth in the G7 this year, a triple-A credit rating, and the lowest net debt- and deficit-to-GDP ratios in the G7. Canadians should be confident that we will overcome any hurdles and prosper in the days ahead.
