Increase Student Loan Forgiveness for Health Workers

Summary#

This is a proposed change to the Canada Student Loans Regulations and the Canada Student Financial Assistance Regulations that would raise loan forgiveness for health workers in under-served rural and remote communities. Family physicians could get up to $60,000 forgiven over five years, and nurses and nurse practitioners up to $30,000; the amount forgiven would grow each year a person stays working in an eligible community.

What it does#

• Raises the total amount of federal Canada student loan forgiveness for eligible workers over a five‑year period:
  • Family physicians: up to $60,000 total (annual schedule: $8,000, $10,000, $12,000, $14,000, $16,000).
  • Nurses and nurse practitioners: up to $30,000 total (annual schedule: $4,000, $5,000, $6,000, $7,000, $8,000).
• The annual forgiveness is applied to reduce the borrower’s outstanding Canada Student Loan balance at the end of each qualifying year.
• Eligibility rules mostly stay the same:
  • Must work as a family physician, nurse, or nurse practitioner in an “under‑served rural or remote community.”
  • Must work at least 400 hours in the year to qualify.
  • Must apply for forgiveness within 90 days after the end of that year.
• The amendments were proposed for the academic year 2023–24 and the government intended the changes to be in place in fall 2023.

Who's affected#

• Canada Student Loan (CSL) borrowers who are or will be:
  • Family physicians.
  • Nurses.
  • Nurse practitioners.
• People living in under‑served rural and remote communities (those with a core population under 50,000 and outside provincial capitals) may see more health workers available.
• The federal government is estimated to pay $22.6 million (present value) over 10 years to cover the larger forgiveness.
• The proposal estimates about 3,000 beneficiaries in the first year (2023–24) and up to 8,000 per year by 2032–33. It also projects attracting about 1,196 doctors and 4,001 nurses over 10 years.
• Note: provinces and territories run student aid programs slightly differently. Quebec, Nunavut and the Northwest Territories administer alternate programs, though some providers there could still be affected depending on where their federal loan was issued.

Why it matters#

• Reduces debt for early‑career doctors and nurses who choose to work in small, under‑served communities. That can make those jobs financially easier and more attractive.
• By offering bigger, escalating annual forgiveness, the change aims to encourage clinicians to stay longer in the same community rather than move away after a short stint.
• The government says the measure should help increase the number of primary care providers in rural and remote areas and improve access to local care — which can affect travel time for patients, wait lists, and continuity of care.
• Stakeholders raised issues during consultations: concerns about keeping health workers in communities after the five‑year forgiveness period, the risk of short‑term “swapping” of providers (including in Indigenous communities), and low awareness or a complex application process. These concerns were acknowledged but not changed in the proposal.