Expansion expected to attract over 900 doctors and nurses to work rural communities
The federal government is looking to expand the coverage of the Canada Student Loan forgiveness among doctors and nurses in hopes of attracting more workers to remote and rural communities.
Ottawa has proposed changes to the Canada Student Financial Assistance Regulations and Canada Student Loans Regulations to make eligible the loan forgiveness doctors and nurses working in population centres of 30,000 or fewer.
"Access to health care in rural and remote areas is essential to building strong communities. Today's changes will give doctors and nurses the support they need to provide quality care to those in our communities who need it the most, while attracting new health professionals to contribute to our growing health care network,” said Randy Boissonnault, minister of employment, workforce development and official languages. “This is ensuring Canadians across the country have access to the health care they need."
Communities with a population of over 30,000 that are currently eligible would remain eligible until the 2026 Census.
The expansion is expected to attract over 900 doctors and nurses to work in these communities.
Canada Student Loan forgiveness for family doctors, family medicine residents, nurses and nurse practitioners would only apply to the federal portion of a student loan.
In February, Ottawa increased loan forgiveness by 50% for doctors and nurses working in under-served rural and remote communities.
The increase means family physicians and family medicine residents would be eligible for up to $60,000 in loan forgiveness over five years, and a nurse or nurse practitioner would be eligible for up to $30,000 in loan forgiveness over five years.
Government seeks comments on proposed loan forgiveness changes
Ottawa has pre-published the proposed changes in the Canada Gazette, Part I. All Canadians can comment on the proposed regulations in the Canada Gazette until July 29.
Budget 2024 announced the federal government's intention to permanently expand the reach of Canada Student Loan Forgiveness Program to more health care and social services professionals working in rural and remote communities. These professions would include early childhood educators, dentists, dental hygienists, pharmacists, midwives, teachers, social workers, psychologists, personal support workers and physiotherapists.
Overall, the cost of this measure is estimated to be $301.7 million over four years, starting in 2025–26, and $100.1 million ongoing.
The expansion to the list of occupations eligible for the Canada Student Loan Forgiveness Program is expected to be implemented starting in 2025–26, subject to legislative and regulatory approvals.
The Canada Student Financial Assistance Program provides Canada Student Grants and Canada Student Loans to help students pay for their post-secondary education.
In April, Ottawa also announced it is providing $1 billion in low-cost loans and $60 million in non-repayable grants to help public and not-for-profit child care providers build new spaces and renovate their existing child care centres.
