Permanent Disability Benefit

If you have a permanent disability and you are experiencing exceptional financial hardship repaying your Canada Student Loan(s) due to your disability, you may qualify for the Permanent Disability Benefit (PDB) which allows for the reduction of your loans.

Eligibility Criteria

To qualify for the PDB you must meet two specific primary eligibility criteria, as follows: 

1. You must have a permanent disability as defined in the Canada Student Financial Assistance Regulations:
   
   "A functional limitation caused by a physical or mental impairment that restricts the ability of a person to perform the daily activities necessary to participate in studies at a post-secondary school level or in the labour force and is expected to remain with the person for the person’s expected life."
   
   
2. You must be experiencing exceptional financial hardship with your repayment obligations due to your disability. The Canada Student Loans Program will assess your financial ability to repay your Canada Student Loan by taking into account your net family income which includes employment earnings, investments, financial assistance under social programs, and monetary gifts.

Type of Loan

In addition to eligibility criteria listed above, there are specific criteria you must meet depending on the type of loan you have.

For Loans negotiated before August 1^st, 1995:

• Your permanent disability may have occurred at any time (prior to, during, or following post-secondary studies).
• Your loans must be held by a financial institution and you must be up-to-date with your payments.
• The Canada Student Loans Act and Regulations do not permit forgiveness if your loans are in default status at a collection agency.

For loans negotiated between August 1^st, 1995 and July 31^st, 2000 for full-time students:

• Your permanent disability must have occurred before the first day of the seventh month from the end of your last confirmed period of study.

For loans negotiated between August 1^st, 1995 and July 31^st, 2000 for part-time students:

• Your permanent disability must have occurred before the day on which you entered into a loan agreement with your lender(s) (financial institution/service provider).

For loans negotiated on or after August 1^st, 2000:

• Your permanent disability may have occurred at any time (prior to, during, or following post-secondary studies).

If you believe you qualify to apply for the Permanent Disability Benefit, please contact the National Student Loans Service Centre (NSLSC) to request an application package. For students who have a Canada-Saskatchewan, Canada-New Brunswick, and Canada-Newfoundland and Labrador Integrated Student Loan(s), please visit CanLearn’s ‘Obtaining Repayment Assistance’ page, which is found under ‘Repay’ in the ‘Pay’ section, as the assessment for the permanent disability benefit will also apply to your integrated loans in these provinces.

Note: The above information is different for the Province of Saskatchewan.