Ontario graduates whose first job will be in the not-for-profit sector will be given a one-year grace period for paying back their student loans, Premier Dalton McGuinty announced Saturday.
Under the proposed plan, new graduates who work for non-profit and non-governmental organizations, such as registered charities, will not have to begin making monthly Ontario Student Assistance Plan payments for 12 months. The current interest-free period available to all OSAP recipients is six months.
"We believe it's important for young people to have an opportunity to help our broader society," McGuinty said at a weekend meeting for the youth wing of the Ontario Liberal Party in Sudbury.
"Extending the payback period for student loans makes it easier for graduates who take their first job in organizations where they can help."
Responding to the announcement, New Democratic Party candidate John Vanthof said McGuinty's promise, although it "wouldn't hurt," will not help students over the long haul.
"In the long run it's not going to help them because they're still going to have a huge debt that is going to have to be repayed," he told The Canadian Press.
Ontario voters head to the polls on Oct. 6.
With files from The Canadian Press
