Question Period Note: PUBLIC ACCOUNTS OF CANADA 2025 FOR EMPLOYMENT AND SOCIAL DEVELOPMENT CANADA

Pouvez-vous expliquer l’augmentation de 2,5 milliards de dollars dans le portefeuille canadien de prêts aux étudiants ?

 The increase of $2.5 billion results from the issuance of $5.5 billion in
Canada Student Loans net of $2.4 billion in reimbursements received
from borrowers in repayment, $244.0M in write-offs and loan
forgiveness, and an adjustment to the unamortized loan discount of
$302.2 million.
 Excluding the unamortized loan discount, the portfolio increased from
$26.1 billion in 2023-2024 to $28.9 billion in 2024-2025; mainly due to the
temporary increase to the weekly student loan limit, from $210 to $300.

Since August 2000, the Canada Student Financial Assistance (CSFA) Program has been directly
delivered and financed by the Government. Since this date, the loans are disbursed to students,
through direct loans. Therefore, the students are indebted to the Government of Canada and, as
a result, the Government bears all risks for the entire duration of the loans.
The overall increase in direct loans is mainly explained by the amount of loans disbursed to
students and reimbursements received from borrowers, as illustrated in the following table:
Activity for 2024-2025 (in millions of dollars)
New loans 5,458.4
Reimbursements
Write-offs and forgiveness
Unamortized loan discount
(2,394.7)
(244.0)
(302.2)
Total variance 2,517.5
Other factors include write-offs on defaulted loans for which all reasonable collection efforts have
been exhausted; and loans paid down under the repayment assistance plan (RAP). Also, loans
can be forgiven in the event of a borrower’s death or a permanent disability causing undue
hardship and for eligible family doctors, nurses and family medicine residents practicing in a rural
and remote community. The unamortized loan discount represents the difference between the
concessionary grant expense for loans issued in 2024-2025 and all concessionary terms
amortizations recognized in 2024-25.
Due to the prorogation of Parliament, approval for write-offs for 2024-2025 was not obtained and
will be reflected in next year’s public accounts. The write-off amount is estimated at $197.2 million.

In Volume I of the Public Accounts of Canada 2025, the Department reports
a total amount of loans outstanding of $28.9 billion ($26.1 billion in 2023-
2024).
 However, loans outstanding are reduced by an unamortized loan discount
of $3.9 billion ($3.6 billion in 2023-2024) to account for the permanent
elimination of interest on loans, for a carrying value of $25.1 billion ($22.6
billion in 2023-2024).