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.)

Proof of  residency in Province

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.

All graduates must apply within the 3-year period following their graduation date.

As part of the application process, you will be required to submit the following:

  • A complete Debt Reduction Grant application;
  • A copy of your degree, diploma, or certificate; and
  • Two forms of verifications for proof of PEI residency. All verifications should be dated within the previous 6 months prior to submitting your application to the office.

Last updated: November 12, 2024