New rules for government student loans kick in today

New student loan repayment rules announced during Ottawa's spring federal budget kick in today, meaning graduates don't have to start repayments until they earn at least $25,000 a year.

Under the old rules, single peoplehad to start paying back Canada Student Loans once they earned$20,210 a year.

For families of five or more people, the cut-off isnow $67,825.

Official figures show three-quarters of a million Canadians hadstudent loans from the federal government during the 2013-2014 school year.

As well, "borrowers who are having difficulty making their monthly Canada Student Loan payments can apply for help through the Repayment Assistance Plan," Employment and Social Development Canada said Monday.

"Depending on their financial situation such as their income and family size borrowers can get approved for a reduced monthly payment on their Canada Student Loan, or for no monthly payment at all."

Ottawa also beefed up the amount it has available for student grants that don't have to be repaid,by more than $1.5 billion over the next five years. In practice, that means an increase of as much as 50 per cent for certain grants:

• From $2,000 to $3,000 per year for full-time students from low-income families.
• From $800 to $1,200 per year for students from middle-income families.
• From $1,200 to $1,800 per year for part-time students from low-income families.