Pacific Leaders B.C. Loan Forgiveness
If you are a regular full- or part-time employee of the BC Public Service, have completed your probation and have B.C. student loans in good standing, you may apply for this program.
If you plan on applying for the Pacific Leaders Loan Forgiveness program, any payments you make prior to your approval will not be used in the calculation for eligibility. In other words, you will not be eligible for Pacific Leaders Loan Forgiveness on payments made prior to your loan forgiveness application being reviewed and approved.
If you direct a payment towards your Integrated student loan, the amount is applied against the federal and British Columbia portions.
This program is available to BC Public Service employees. You are eligible to apply if
- You have Canada-B.C. integrated student loan in good standing and in repayment
- You have passed your six-month initial probationary period and are a regular full- or part-time employee of a BC Public Service employer. This includes all ministries and any organization that is enabled under the Public Service Act
You are not eligible to apply if you are an auxiliary or casual employee. If you are unsure of your employment status, please contact AskMyHR. You are also ineligible if you are an employee of the broader public sector, including
- Health authorities (such as VIHA)
- School districts and universities
- Crown corporations (for example, Community Living BC, BC Hydro)
- Other municipal or federal governments (for example, police)
These organizations have their own terms and conditions of employment. If you are not sure if an organization is an eligible employer, please check before you apply or consider changing jobs to a different organization. Taking a position at an ineligible organization will mean you are no longer eligible. If you have any questions, email StudentAid BC.
How It Works
- Apply for the program and continue to make payments on your Canada-B.C. integrated student loans until you are accepted and notified in writing. Only the B.C. portion of the Canada-B.C. integrated student loan is eligible for Pacific Leaders Loan Forgiveness
- If accepted into the program, the B.C. portion of your Canada-B.C. integrated student loan is put on "interest-free" status for one year and you make no further payments on that portion of your loan. At the end of that year, one third of your total B.C. student loan debt is forgiven
- As long as you continue to meet program eligibility criteria and your employment status does not change, you will remain on the program and in "interest-free status." After three years, your entire B.C. student loan will be forgiven
- During the time you are enrolled in the Pacific Leaders Loan Forgiveness program, the National Student Loan Service Centre will communicate to you what you owe on your Canada and B.C. loans
- You must complete the 12 months of employment as a regular employee to receive any loan forgiveness as well as the "interest-free" subsidy
Loan forgiveness is not a taxable benefit.
The Pacific Leaders Loan Forgiveness program is a different program than federal or provincial programs offering loan forgiveness to doctors and nurses who practise in remote and rural areas of the province.
If your B.C. portion is not up to date, you will need to bring your loan into good standing and provide StudentAid BC via email with a clearance letter from the federal government case management unit of the National Student Loans Service Centre proving you are no longer in default to be eligible for Pacific Leaders Loan Forgiveness.
Leaves and change in employment
Loan forgiveness is not pro-rated. If you leave government in the middle of the year, you are not eligible for the "interest-free" status and the interest paid on your behalf will be added to the outstanding loan principal.
You must start making payments on the B.C. portion of your Canada-B.C. integrated student loan and are not entitled to any portion of the loan forgiveness.
If you are in part-time studies, your repayment status means you are eligible for the BC Loan Forgiveness program. If you return to full-time studies then you are not eligible. If you return to full-time studies then you are not eligible because you will be in “interest-free”, non-payment status during that time. Re-apply when you return to work.
- For less than three months during the 12 month “service” period being reviewed, you are eligible for loan forgiveness
- For three months or more during the 12 month “service” period being reviewed, you are ineligible to receive loan forgiveness and will be removed from the program
Employees on general leave cannot apply while on leave but are invited to apply/re-apply to the program once they return to work.