Photo Credit: budget.gc.ca

Minister Hutchings Highlights Federal Government's Plan To Eliminate Interest On Student And Apprentice Loans And Enhance The Canada Workers Benefit

Thursday, 10 November 2022 02:22.PM

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 goods and services tax (GST) credit for 11 million eligible Canadians, enhancing the Canada Workers Benefit (CWB) to support 4.2 million Canadians, and making federal student and apprentice loans permanently interest-free for the graduates of today and tomorrow.

Today, the Honourable Gudie Hutchings, Minister of Rural Economic Development, participated in an event at the New Brunswick Community College to highlight the Government of Canada's plan to make the federal portion of all Canada Student Loans and Canada Apprentice Loans, including those currently being repaid, permanently interest-free.

The Government of Canada is also providing advance payments of the CWB to put more money, sooner, into the pockets of our lowest-paid—and often most essential—workers. The CWB is a refundable tax credit to help individuals and families who are working and earning a low income. This measure would provide a total of up to $714 for single workers and $1,231 for a family to help cope with the rising cost of living. The amount will be split between three advance payments.

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.

"The Fall Economic Statement is a fiscally responsible plan to make life more affordable and grow the economy. Our government is proposing new permanent steps to reduce the burden of student and apprentice loans on young Canadians by permanently eliminating interest on federal student and apprentice loans. This will make it easier for them to invest in building their futures. We are also enhancing the quarterly Canada Workers Benefit and providing automatic advance payments to put more money back in the pockets of our lowest-paid—and often most essential—workers."
­– The Honourable Gudie Hutchings, Minister of Rural Economic Development

Quick facts

• The federal government's fiscal anchor—the unwinding of COVID-19-related deficits and reduction of the federal debt-to-GDP ratio over the medium term—remains unchanged. The federal debt-to-GDP ratio is projected to continuously decline and is on a steeper downward track than projected in Budget 2022.
• New measures proposed in the 2022 Fall Economic Statement include:

1. Making life more affordable:

• Permanently eliminating interest on federal student and apprentice loans
• Creating a new quarterly Canada Workers Benefit with automatic advance payments to put more money back in the pockets of our lowest-paid workers, sooner
• Delivering on key pillars of the government's plan to make housing more affordable, including creating a new Tax-Free First Home Savings Account, doubling the First-Time Home Buyers' Tax Credit and ensuring that property flippers pay their fair share
• Lowering credit card transaction fees for small business

2. Investing in jobs, growth and an economy that works for everyone:

• Launching the new Canada Growth Fund, which will help bring to Canada the billions of dollars in new private investment required to reduce our emissions, grow our economy and create good jobs
• Introducing major investment tax credits for clean technologies and clean hydrogen that will help create good jobs and make Canada a leader in the net-zero transition, and incentivizing higher wages for workers by increasing the level of the credit when certain labour protections are met
• Implementing a new tax on share buybacks by public corporations in Canada
• Creating the Sustainable Jobs Training Centre and investing in a new sustainable jobs stream of the Union Training and Innovation Program to equip workers with the skills required for the good jobs of today and tomorrow.

SOURCE: Innovation, Science and Economic Development Canada

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