The NDP on Saturday said it will push the Liberal government to cancel up to $20,000 in federal student loan debt per Canadian, as part of its plan to help young people struggling financially amid the COVID-19 pandemic.
Instead of getting a six-month grace period following graduation, under the NDP plan, graduating students would be given five years to start making payments.
After the five-year head start period, graduates with an annual household income of $60,000 or less would be eligible for a $20,000 debt reduction. The reduction amount would be less for households earning between $60,000 and $100,000, based on a linear scale, before phasing out for household incomes above $100,000.
The NDP estimates the proposed program would help over 300,000 Canadians in its first year, and more than 100,000 Canadians every year after.