Prince Edward Island

Debt Reduction Grant Program

Easy application

Tax filing not required

This benefit may lead to others

If you qualify for this benefit you may be able to get other related benefits, including:

    You may be able to get a Debt Reduction Grant if you are a student graduating from a post-secondary program with more than $6,000 in federal and provincial student loans borrowed per year. The grant will help reduce your provincial student loan balance.

    • a grant of up to a maximum of $3,500 per year of study may be applied directly to your provincial student loan balance.

    Debt reduction grants will only be issued for provincial student loan amounts greater than $100 per academic year.

    You may be able to get a debt reduction grant if you meet the following criteria:

    • The total amount of PSL must be more than $100.
    • Applicants cannot be attending post-secondary (for another degree, diploma, or certificate) at the time of application.
    • Post-Secondary graduates who have borrowed from the PEI Student Loan Program; and
    • Post-Secondary graduates who have earned a degree, a diploma, or a certificate within the last 3 years; and
    • Post-Secondary graduates who are a PEI resident* and are one of the following:
    • Beginning on their most recent post-secondary graduation date, graduates who have been living on PEI for a minimum of 6 months after their graduation date. For example, if a student graduates on May 7, 2023, then the earliest they can apply for a grant is November 8, 2023. (Please note, applications received within 6 months of graduation will be returned to the applicant.) or
    • Post-secondary graduates who have moved back to PEI and have been living on PEI for a minimum of 6 months prior to their application date. For example, if a student graduated on May 9, 2021, moved out-of-province for a year, but moved back to PEI on July 10, 2023, then the earliest they can apply for a grant is January 11, 2024.

    Please note there is a cap on the number of years to be considered for a Debt Reduction Grant. All post-secondary education programs have a standard length of time for completion. Debt Reduction Grants only cover a degree/diploma/certificate’s standard length of time plus 1 year.

    The Debt Reduction Grant awarded cannot exceed the amount borrowed.

    Documents listed in this section are examples of what can be included with your application. Please review the application instructions (How to Apply tab) to confirm the supplemental and required documents for this benefit.

    Proof of  residency in Province/ Territory

    For example:

    • lease agreement
    • rent receipt
    • household bill
      • gas
      • electricity
      • cable television
      • telephone
    • driver's license
    • vehicle registration or car insurance
    • membership in social or professional organization
    • Other:
      • bank information
      • employment information

    Proof of Post-secondary degree

    For example:

    Degree/transcripts.

    • Verification of Canada Student Loan
    • Verification of Provincial Student Loan

    Step 1

    Complete the application form - Debt Reduction Grant Application Form

    Step 2

    Obtain a copy of your degree, diploma, certificate, or unofficial transcript.

    Step 3

    Obtain a print-out of your provincially-funded student loan balance from Edulinx. Here is the Edulinx student sign-in web page: https://pei.edulinx.ca/Eng/ContactUs.aspx

    Step 4

    Submit all forms and documents to our office (see contact information below). Please note, if you mailed original documents, they will not be returned.

    Student Financial Services

    Mailing Address:

    Student Financial Services

    Atlantic Technology Centre

    176 Great George St, Suite 212

    Charlottetown, PE,

    C1A 4K9

    Last reviewed: September 25, 2026