Official Guidelines Updated: March 2026
Key Facts for 2025–2026:
The PEI Debt Reduction Grant helps graduates reduce their Provincial Student Loan balance by up to $3,500 per academic year of study (for graduates after July 31, 2018). You must live in PEI for at least 6 months before applying and apply within 3 years of graduation. The grant applies to any Canadian post-secondary institution — not just Island schools.
The PEI Debt Reduction Grant is a post-graduation program that rewards Island residents who return to or remain in PEI by reducing the balance on their Prince Edward Island Student Loan. It is available to graduates of any Canadian post-secondary institution — not only UPEI or Holland College — making it a broadly accessible program that many eligible graduates are unaware of.
Eligibility Criteria
To qualify for the Debt Reduction Grant, you must:
- Have a Prince Edward Island Student Loan balance from your studies (the grant applies only to the PEI provincial loan — not to Canada Student Loans).
- Have a minimum combined (federal + provincial) student loan debt from an eligible year of more than $6,100, of which at least $100 must be a PEI Student Loan.
- Have lived in PEI for at least 6 months immediately before applying for the grant. For recent graduates, this means 6 months after your graduation date.
- Apply within 3 years of your post-secondary graduation date.
- Have graduated from the program in which you incurred the debt — only years in which you were enrolled in the program from which you graduated are eligible.
Important:
You do not need to have attended a PEI post-secondary institution to qualify. The grant applies to graduates of any Canadian post-secondary program who have a PEI Student Loan and who return to live on the Island. Many eligible graduates miss out because they are unaware of the program — check your eligibility even if you studied away from PEI.
How Much Can You Get?
| Graduation Date | Maximum Per Academic Year | Overall Maximum |
|---|---|---|
| After July 31, 2018 | Up to $3,500 | Up to ~$17,500 (based on program length + 1 year) |
| Before July 31, 2018 | Up to $2,000 | Based on same maximum funding formula |
The maximum funding is based on the minimum required length of your program plus one additional year. Only academic years with combined debt exceeding $6,100 (including at least $100 of PEI Student Loan) are included in the calculation. The grant is applied directly against your PEI Student Loan balance — it is not paid to you in cash.
How to Apply
Apply after graduation using the Debt Reduction Grant application form, available from the PEI Student Financial Services website. Your application must include verification of your PEI Student Loan balance from EDULINX-PEI (contact 1-877-560-1389 or register at pei.edulinx.ca) — this verification must show your current balance within 4 weeks of your application date. Copies of loan certificates are not accepted.
You must also provide proof of PEI residency for at least 6 months preceding your application — two forms of documentation are required. All applications must be submitted within 3 years of your graduation date.
Other Financial Aid Options
The Debt Reduction Grant complements the PEI Student Loan and can be combined with the PEI Provincial Grant and Canada Student Grants received during your studies. For information on repaying your federal Canada Student Loan, see the Canada Student Loans page.
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