It can seem like a never-ending struggle to make ends meet. Financial milestones – from buying a home to sending your child to college – can feel like insurmountable obstacles.
Fortunately, the federal government’s student loan forgiveness has taken notice of the cost of living and ease of access to education that comes with living in the United States. In an effort to ease burdens on taxpayers and potential debtors, the Government of Canada is offering free tuition for Canadian students who pursue studies at a two-year or four-year college or university in the United States. The Master Promissory Note Program offers up to $167,000 in loans per individual, depending on annual earnings and family size.
For those who qualify, it’s possible to have your student loan forgiven after working in certain government jobs for up to 10 years. If you’re thinking about moving abroad for work but are worried about leaving your loans behind, read on for more information about how this forgiveness program works and tips on how to take advantage of it sooner rather than later.
What Is Student Loan Forgiveness?
Forgiveness is an act of cancelling or releasing somebody from a debt. It’s the act of saying, “I don’t want to be responsible for this debt anymore.” Student loan forgiveness allows those who qualify to have their loans cancelled after 10 years of government service, or less if they work for certain types of organizations like public servants, emergency medical technicians and more.
The Master Promissory Note Program offers up to $167,000 in loans per individual, depending on annual earnings and family size. For those who qualify, it’s possible to have your student loan forgiven after working in certain government jobs for up to 10 years. Not only are you saving yourself the trouble of paying off your loans but also avoiding interest payments that can add up over time.
Government of Canada Master Promissory Note Program
The Master Promissory Note Program offers forgiveness on student loans in a way that is specific to those who live outside of Canada. It is possible for those who have taken out government loans to have their loan forgiven after up to 10 years of working in certain federal government jobs.
There are two types of forgiveness programs offered by the Government of Canada:
- The Canadian Government Student Loan Forgiveness program will forgive a portion of your student loan debt after five years if you work for the federal government or an organization it funds.
- The National Defence Student Loan Forgiveness program will forgive up to $50,000 in student loans after 10 years if you work for the Department of National Defence or one of its agencies and agree that your employment is “in direct support” of national defence.
With either type, there are eligibility requirements, such as having no outstanding balance and not having taken advantage of any other federal loan forgiveness programs offered by the Canadian Government (or any other country).
How to Apply for Canadian Master Promissory Note Forgiveness
Apply for the student loan forgiveness program at the Canadian Embassy or Consulate in the United States and provide proof of your enrollment in college. For example, if you have a four-year degree from an accredited U.S. institution, bring your transcripts with you to apply for forgiveness.
If you are already working on a Master Promissory Note and want to see if it qualifies for Canadian student loan forgiveness, call the Department of Foreign Affairs and Trade Canada Student Aid Office at 1-800-529-9881.
How Does the Program Work?
Individuals who qualify for the Canadian Education Promissory Note Program can borrow up to $167,000 for up to 10 years, depending on annual income and family size. There are a handful of eligible jobs that allow for student loan forgiveness after working in them for the required amount of time.
If you’re interested in qualifying for forgiveness, here are a few key details about the program:
- You must be employed full-time by the government of Canada or its affiliated agencies with an annual salary of at least CAD$120,000.
- You must make satisfactory progress toward fulfilling your obligations under your employer’s pension plan.
- You must have worked as a permanent employee before becoming a member of the Canadian Armed Forces.
- You must not have any loans from other sources that do not belong to you
Can a Federal Job Grant Forgiveness?
The Master Promissory Note Program offers Canadian citizens who are looking to pursue an education in the US up to $167,000 in loans. This loan can be used for anything from tuition, textbooks, and living expenses to travel and car repairs. To qualify for student loan forgiveness after 10 years of federal service, you must work in a field related to the government’s human resource or public service needs.
Tips on How to Earn More Forgivable Time in Canada
The Master Promissory Note Program is a ten-year program that offers up to $167,000 in loans per individual. It requires some heavy qualifications and time commitments, including being employed by the federal government for at least ten years or working in certain government jobs for at least five years.
If you’re interested in earning more time for your Canadian student loan forgiveness, there are a few things you should keep in mind:
- Consider taking on a long-term contract with the federal government if you don’t want to be tied down to an employer. This can make it easier to qualify for relief sooner rather than later.
- Consider higher education: Those who earn a degree are more likely to be eligible for forgiveness than those who do not.
- If you’re planning on moving abroad, it might be worth considering how your work will affect your eligibility for the Master Promissory Note Program. For example, if you plan on staying abroad permanently and working as an engineer or geologist with the Canadian government overseas, it may be best to start out with short-term contracts and stay within Canada before applying across borders.
Final Words: Is It Worth Moving Overseas for Student Debt Relief?
It can be difficult to decide whether or not it’s worth moving abroad for work and student loan relief. That being said, the program offers students a chance at debt forgiveness after 10 years of government service in regions such as Canada, France, Mexico, Australia, New Zealand and more.
However, some student loan forgiveness programs will only cover up to 20 percent of your loans – that means you have to put in the effort. If you’re considering joining the Foreign Service or working overseas for a company like IBM or Microsoft – two companies which typically offer tuition reimbursement – this forgiveness program could help relieve your burden and allow you to focus on other aspects of your life.