CHARMAINE KERRIDGE
BIZ/TECH REPORTER

With the new Ontario Student Assistance Program repayment assistance plan announced by the Ministry of Training, College and Universities on March 29, student loan repayment will become more affordable for cash-strapped Humber grads.
The Ontario government aims to reduce monthly repayments to levels grads can “reasonably afford.”
“This new change has to do with the repayment of loans,” said Patrick O’Gorman, spokesperson for the ministry. “So whatever your debt is, you would not be paying more than 20 per cent of your family’s income.”
The plan comes into effect in May and replaces the interest relief program, which forgave interest accrued on loans.
However, students and grads will face larger debt as the McGuinty government also raised the cap on the maximum amount of debt students can accumulate for a two-term academic year by $300.
“Before, you would only accrue $7,000 per year in debt,” said O’Gorman. “Anything you received after the $7,000 would be converted to grants. That has now risen to $7,300.”
It is the first increase on the cap in 12 years, he said. Despite repayment assistance, loan repayment can still seem overwhelming.
“OSAP is a burden,” said Chantal Byfield, 21, who is graduating from justice studies at Guelph-Humber. “They should make education more affordable and not about debt. Even if you get a good job, OSAP’s holding you back.”
Working with the Students Loans Centre, grads can find an affordable repayment amount, said Nicole Hammond Bonich, the regional representative for the National Student Loans Centre.
If loan repayment assistance is not pursued, then regular loan charges will become due six months after graduation and interest will start to accrue on the balance owing, said Bonich.
She advises students to register for the repayment assistance plan.
“Every six months you have to have an income audit done,” said Bonich. “As long as you have that loan, you can keep reapplying every six months for the Repayment Assistance program.”