If You Need Help Repaying

B.C. loan reduction program

The B.C. loan reduction program helps students who must borrow most of the money they need to pursue their post-secondary education.

Full-time students who successfully complete each year of their studies may have their B.C. student loan debt reduced by the provincial government.

Your B.C. student loans must be higher than the limit set each year to get loan reduction.

There is no need to apply. You will automatically be considered for loan reduction each year through information from your StudentAid BC loan application.

StudentAid BC sets the yearly loan reduction limit for all B.C. post-secondary students based on the number who are eligible and the budget for that program year. Your loan will be reduced by the yearly limit based on your assessed need and the amount of your B.C. student loan.

Graduate students, students in professional programs (law, medicine or dentistry), and students in programs of less than two years are not eligible for the B.C. loan reduction program.

How the program works

Loan reductions are usually applied to your StudentAid BC loan account early in the fall after each study period you successfully complete.

The amount of loan you can have reduced is set by the yearly limit using the total budget for the program and the number of eligible students. The portion of your B.C. student loan that is higher than the yearly limit will be reduced when you successfully complete your studies. The higher your B.C. student loan amount, the more loan reduction will be paid.

The program is available to students with no dependants in their first four academic years of borrowing, and to students with dependants in their first five academic years of borrowing. An academic year is 34 weeks.

Students with dependent children in their fifth year of borrowing from StudentAid BC will have their entire B.C. student loan debt reduced.

Eligibility

To qualify for the B.C. loan reduction program, you must meet all the following conditions:

  • Your student loans must be in good standing or not in default.
  • You must be enrolled in a full-time study program of at least two academic years at a designated Canadian institution.
  • You must have successfully completed at least 30 weeks of study and at least 60 per cent of a full course load during the program year.
  • You must be in your first, second, third or fourth year of borrowing from StudentAid BC (and fifth year for students with dependants).
  • You must have B.C. student loans over the loan reduction limit established each year.
If your StudentAid BC file is under audit or restricted for other reasons, you will not be considered for B.C. loan reduction until the audit is complete or the restriction is removed.