Prince Edward Island

Debt Reduction Grant Program

Easy application

Tax filing not required

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.

Are there any limitations?

  • 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. On average, a degree is a 4-year program, a diploma is a 2-year program, and a certificate is a 1-year program. Debt Reduction Grants only cover a degree/diploma/certificate’s standard length of time plus 1 year.
    (For example, if it took six years to complete a four-year program, then the Debt Reduction Grant would only be considered for the first five years of the program [4 years +1 year = 5 years]. No grants would be awarded for the 6th year.)
  • The Debt Reduction Grant awarded cannot exceed the amount borrowed.
    (For example, if a student borrowed $1,500 in provincially funded student loan in 2020, then the maximum amount of debt reduction grant awarded would be $1,500, instead of $3,500.)

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:
PO Box 2000
Charlottetown, PE
C1A 7N8

Last updated: November 12, 2024