Young professionals willing to relocate to rural and remote areas of Canada will qualify for thousands in student loan forgiveness under proposed regulations set to take effect November 1, according to the Department of Employment.
Blacklock's Reporter says the initiative aims to address shortages in essential services, including health care and education.
“Rural and remote areas face historical barriers to health care and social services,” the department stated in a legal notice. The new amendments under the Canada Student Loans Act are expected to improve access to these critical services by offering financial incentives to professionals willing to move to under-served regions.
Under the program, dentists, pharmacists, and psychologists could receive up to $60,000 in loan forgiveness over five years. Midwives, physiotherapists, teachers, and social workers would qualify for up to $30,000, while dental hygienists, early childhood educators, and personal support workers could see up to $15,000 in relief.
These amounts reflect the typical student debt burden associated with each profession.
Officials predict the initiative will attract 2,800 young professionals annually to rural areas, with the cost of loan forgiveness averaging $65.4 million per year.
“Canada is facing a longstanding and persistent crisis related to shortages of essential workers,” the department said.
The proposal mirrors a 2012 program that offers up to $60,000 in loan forgiveness for doctors and $30,000 for registered nurses who work in rural areas.
That program has helped recruit 17,921 doctors and nurses, according to a 2023 evaluation. To date, $172.2 million in loan payments have been waived.
Government researchers found that 21% of participating doctors and nurses considered the loan forgiveness program a significant factor in their decision to work in rural communities, with nurses more frequently citing its impact.
The proposed expansion did not specify which provinces or territories are expected to benefit the most.