Question Period Note: POST-SECONDARY EDUCATION AFFORDABILITY

A News Release was released on September 3, 2024, outlining improvements to the affordability of post-secondary education for Canadian students.

• Canadians are facing increasing affordability pressures. Post-secondary education is a key driver of inclusive economic growth, and the Government is committed to ensuring that it remains accessible and affordable for all Canadians.

• To help students afford post-secondary education, the Government has increased non-repayable Canada Student Grants by 40 percent over pre-pandemic amounts for the current school year. Canada Student Loan debt has remained stable for over a decade due to significant increases in grants.

• The Government has also made Canada Student Loans permanently interest-free and has increased the weekly loan limit from $210 to $300 for this year.

• The Government of Canada has also permanently eliminated the credit screening requirement for students aged 22 and older who are applying for student financial assistance for the first time.

• In addition, to recognize the affordability pressures facing students, the Government has modernized the shelter allowances used by the Canada Student Financial Assistance Program to assess students’ financial needs. As of August 1, approximately $154.6 million over five years in additional student financial aid will go to students to help with their housing costs.

The Canada Student Financial Assistance 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 are increased by 40% over their pre-pandemic amounts for 2024-25. Post-secondary students can benefit from the following grants:
• Canada Student Grant for Full-Time Students: 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 (CSG PTDEP): maximum of $2,688 annually (versus $1,920 in 2019-2020).
Canada Student Loans (CSLs) were also increased from $210 per week to $300 for 2023-24, and then again for 2024-25. This means full-time students can receive a maximum of $10,200 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.
On April 1, 2023, the Government of Canada permanently eliminated interest accrual on CSLs and Canada Apprentice Loans. This built on temporary waivers on interest during the COVID-19 pandemic.
On November 1, 2022, the Government increased the zero-payment income threshold for the Repayment Assistance Plan so that single borrowers are not required to begin repaying their CSLs until they are earning at least $40,000 per year. This amount is adjusted upward based on family size. To ensure this support keeps pace with the cost of living, the zero-payment income threshold is indexed to inflation. As of August 1, 2024, the zero-payment income threshold for a single borrower is now $44,388 per year.
For 2023-24, the Government has also waived the requirement for mature students 22 years or older to undergo credit screening to obtain grants and loans. This will help up to 1,000 prospective students in accessing funding for post-secondary education.
In 2023, the Government consulted with students on a long-term approach to student financial assistance. Students emphasized affordability considerations and advocated for consistent and stable funding for student financial assistance during that consultation.

If Pressed

• Grants are non-repayable, so they provide students with additional funding to attend school without increasing debt.

• Loans are a cost-effective way of providing students with more up-front support to pay for things like tuition and housing while in school.

• Permanently eliminating interest accrual on loans means that the cost of repaying a student loan is lower, and not subject to changes in interest rates.

• Furthermore, under the Repayment Assistance Plan no one has to start repaying their student loan until they are earning $44, 388 this threshold is updated annually for inflation.

“The Canadian Alliance of Student Associations is hopeful that the 2025 federal budget will reflect the needs that students across the country have identified as important and meaningful for the future of post secondary education in Canada."

• Canadian Alliance of Student Associations (CASA), News release August 7, 2024

"Many students are renters and are struggling to afford non-precarious living situations, especially international students, but the announced funding for student housing was absolutely necessary to provide relief to both domestic and international students. Although the funding announced for student housing and other key areas for students does not go as far as the Federation would hope, it is a good start to addressing the national housing crisis and we look forward to continuing to work with all levels of government to aid in delivering more funding and support for students."

• Canadian Federation of Students (CFS), reaction to Budget 2024, April 2024

“As a means-tested program that provides a return-on-investment of $3.50 for every dollar invested, the federal government has consistently been able to effectively remove financial barriers and ensure equal opportunities for marginalized students through Canada Student Grants.”
- Canadian Alliance of Student Associations, Pre-Budget 2025 submission, August 2024