Government of Canada increases loan forgiveness for doctors and nurses working in under-served rural and remote communities

OTTAWA, ON, Feb. 13, 2024 /CNW/ - From downtown Toronto, Vancouver and Montréal to Canmore, Alberta, and Truro, Nova Scotia, Canadians deserve access to timely, high-quality health care—where and when they need it.

The cost of education and training for nurses and doctors is high and can discourage many talented Canadians from pursuing their career of choice. The Government of Canada is taking the next steps to strengthen the Canadian workforce and reduce costs and expenses for health care workers.

Today, the Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages, announced that the policy to increase loan forgiveness by 50% is now in effect for doctors and nurses working in under-served rural and remote communities.

With these changes, up to $60,000 will be forgiven for a family physician or family medicine resident, and up to $30,000 for a nurse or nurse practitioner.

This is a 50% increase to the maximum amount of forgivable Canada Student Loans for eligible family physicians, family medicine residents, nurses and nurse practitioners working in under-served rural and remote communities. Approximately 3,000 doctors and nurses will benefit in the first year of implementation, reaching up to 8,000 per year by 2032–2033.

This 50% increase in Canada Student Loan forgiveness is expected to attract nearly 1,200 new doctors and 4,000 new nurses to under-served rural and remote communities across the country over a 10‑year period.

These changes strengthen the health workforce in rural and remote communities by helping to attract and retain health workers. They also contribute to making debt loads more manageable for the family physicians, family medicine residents, nurses and nurse practitioners who work in these under-served areas.

These changes are in addition to the Government of Canada's historic investment of over $200 billion over 10 years to improve health care for Canadians.

Quotes

"During the pandemic, we saw first-hand how important our health workforce is, especially in rural and remote communities. With these regulatory changes, we are improving our support for health workers as well as offering needed quality health care to people living in Canada's under-served rural and remote communities."
– the Honourable Randy Boissonnault, Minister of Employment, Workforce Development and Official Languages 

"Health workers are the backbone of Canada's health care system. Without a sustained and efficient workforce, Canadians cannot access the care they need, when they need it. These regulatory changes will support the recruitment and retention of health workers in rural and remote communities, where there are significant needs right now."
– the Honourable Mark Holland, Minister of Health

Quick Facts

• Budget 2022 committed $26.2 million over four years, starting in 2023–2024, and $7 million per year ongoing for these changes. In addition, through Budget 2023, the Government of Canada announced plans to expand the definition of rural communities to include all communities with populations of up to 30,000, starting in 2024–2025.
• The Canada Student Financial Assistance Program provides Canada Student Grants and Canada Student Loans to help students pay for their post-secondary education.
• The Program works in partnership with provinces and territories to deliver student financial assistance. Quebec, the Northwest Territories and Nunavut receive alternative payments from the Government of Canada to administer their own student financial assistance measures.
• Canada Student Loan forgiveness for family doctors, family medicine residents, nurses and nurse practitioners only applies to the federal portion of a student loan.
• The Government of Canada is investing more than $200 billion over 10 years to improve health care for Canadians, which includes a focus on efforts to support the health workforce. That investment includes $25 billion through tailored bilateral agreements with provinces and territories to advance shared health priorities, one of which is supporting Canada's health workers.

Associated Links

Canada Student Loan forgiveness for family doctors and nurses
Canada Student Financial Assistance Regulations
Canada Student Loans Regulations
Canada Student Financial Assistance Program
Government of Canada is addressing current and emerging labour demands in health care

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SOURCE Employment and Social Development Canada

For media enquiries, please contact: Mathis Denis, Press Secretary, Office of the Minister of Employment, Workforce Development and Official Languages, 343-573-1846, [email protected]; Media Relations Office, Employment and Social Development Canada, 819-994-5559, [email protected]