Question Period Note: Budget 2025 Announcement on Canada Student Grant for Full-Time Students Eligibility

About

Reference number:
EF_048_20260105
Date received:
Nov 28, 2025
Organization:
Employment and Social Development Canada
Name of Minister:
Hajdu, Patty (Hon.)
Title of Minister:
Minister of Jobs and Families

Issue/Question:

Budget 2025 announced that within Canada, the Government will generally limit access to the Canada Student Grant for Full-time Students to students attending public educational institutions and not-for-profit private institutions, starting in 2026-2027. Pending regulatory approval, this measure would be implemented on August 1, 2026.

Suggested Response:

The measure proposed in the Budget does not impact funding to students attending career colleges as long as the program length is less than two years.

Recent rapid growth in longer duration programs at private career colleges has resulted in large increase in disbursements of the Canada Student Grant for Full-time Students; this, combined with poorer employment outcomes and loan repayment rates, is leading to increased cost and financial risks to the Government and to students.

For longer programs, the measure would ensure that public funds support education and training at public institutions with demonstrated better labour market outcomes.

IF PRESSED (Rapid growth in disbursements)

Most Private Career Colleges (PCCs) have traditionally offered mostly shorter duration programs (up to one year in duration); however, the number of PCC students pursuing two-year programs has almost tripled since 2019.

Canada Student Grant for Full-time Students disbursed to students at private educational institutions increased 320% over five years (from $68.7 million in 2019-2020 to $288.5 million in 2023-24). In comparison, over the same period, disbursements to students at public colleges and universities increased by only 37%.

Background:

The Canada Student Financial Assistance (CSFA) Program provides need-based grants and interest-free loans to help students access post-secondary education and offers the Repayment Assistance Plan to borrowers with financial difficulty. 

In response to the COVID-19 pandemic, Canada Student Grants (CSGs) were temporarily doubled over pre-pandemic amounts from the 2020-21 through 2022-23 school years. To address ongoing affordability challenges, CSGs were subsequently increased by 40% over their pre-pandemic amounts for the 2023-2025 school years, with a recent extension for 2025-26. Post-secondary students can benefit from the following grants: 

Canada Student Grant for Full-Time Students (CSG-FT): up to $4,200 for a typical academic year (versus up to $3,000 in 2019-2020); 

Canada Student Grant for Part-Time Students: up to $2,520 annually (versus up to $1,800 in 2019-2020); 

Canada Student Grant for Students with Disabilities: $2,800 annually (versus $2,000 in 2019-2020); 

Canada Student Grant for Full-Time Students with Dependants: up to $2,240 per dependant per typical academic year (versus $1,600 in 2019-2020); and 

Canada Student Grant for Part-Time Students with Dependants (CSGPTDEP): maximum of $2,688 annually (versus $1,920 in 2019-2020). 

Students with disabilities can also receive the Canada Student Grant for Services and Equipment for Students with Disabilities, which reimburses expenditures up to $20,000 per academic year.

Canada Student Loans (CSLs) were also increased from $210 per week to $300 for two years (2023-25), and then again for 2025-26. This means full-time students can receive a maximum of $10,200 in interest-free loans for a typical 34-week academic year (previously $7,140). Prior to 2023-24, the weekly loan limit had remained at the same level ($210) since 2005-06, except when it was temporarily increased to $350 for 2020-21 as part of COVID-19 relief measures.  

Additional Information:

The Government of Canada provides Canada Student Grants and Loans to support access to post-secondary education.

To be eligible for the Canada Student Grant for Full-time Students, a student must be enrolled in a program of study that is at least two years (60 weeks) in duration. Students enrolled in shorter programs have never been eligible for the Canada Student Grant for Full-time Students and are therefore not affected by this measure.

Students attending private for-profit institutions will still have access to other grants and loans, including interest-free Canada Student Loans as well as Canada Student Grants for Students with Dependants, Students with Disabilities, Part-Time Studies, and the Grant for Services and Equipment for Students with Disabilities. “We want to ensure that public money goes to public institutions for one and [secondly] so that we can reduce the practice by some career colleges of extending programs."

"We are ensuring that students who need financial support continue to [receive it], we are making sure Canada Student Grants are available to students who need them."

  • Hon. Patty Hajdu, Minister of Jobs and Families, Standing Committee on Human Resources, Skills and Social Development and the Status of Persons with Disabilities (HUMA), 25 November 2025

“The Liberal Budget Discriminates Against Students at Career Colleges, and in key programs preparing youth for good jobs. Aspiring Chiropractors, Acupuncturists, and many other students are about to be cut off because the Liberal government does not respect the work they do.”

  • Garnett Genuis, MP (Sherwood Park – Fort Saskatchewan), HUMA, 25 November 2025

“NACC and our members are calling on the Federal Government to work together with our sector to consider this decision as they develop the legislative changes and regulatory processes to ensure that learners retain their right to choose their educational pathways,”

  • Michael Sangster, CEO, National Association of Career Colleges, Response to the Budget, 6 November 2025