Question Period Note: Post-Secondary Education Affordability

What is the Government of Canada doing to make post-secondary education more affordable?

• The Government is committed to ensuring that post-secondary education is affordable and student debt is manageable.
• In response to the COVID-19 pandemic, the Government acted quickly with a number of measures, including the Emergency Student Benefit, student loan repayment moratorium and doubling of Canada Student Grants. This means students are receiving supports they need during the pandemic.
• In the recent Fall Economic Statement, the Government also announced elimination of interest on Canada Student Loans for 2021-22 to ease the financial burden of student loan repayment during the economic recovery.

• As a result of investments made in recent years, in 2018-19, 478,000 students from low- and middle-income families received up to $3,000 in grants. As well, 330,000 borrowers with repayment challenges benefited from the Repayment Assistance Plan (RAP), and a majority of them were not required to make any payments at all.

• Through Budget 2019, the Government of Canada made the six-month non-repayment period interest free and lowered interest rates on Canada Student Loans (CSL) to prime, from prime plus 2.5 percent, as of November 1, 2019.

• In response to the COVID-19 crisis, the Government paused student loan repayment from March 30, 2020 to September 30, 2020 and covered interest on these loans during this time, providing relief to over 1 million CSL borrowers in repayment.

• The Government of Canada also implemented changes for the 2020-2021 school year, so students facing financial challenges due to COVID-19 can access and afford post-secondary education. These changes include doubling the Canada Student Grants up to $6,000. Approximately 765,000 returning and prospective students are expected to benefit from these measures.

• Effective October 1, 2020, the Government of Canada is introducing an interest-free and payment-free leave for CSL borrowers taking temporary leave from their studies for medical or parental reasons, including mental health leave. Borrowers who are approved under this new measure will benefit from a suspension of payments and interest on their CSLs for six months, which can be extended up to 18 months of leave.

• In the November 2020 Fall Economic Statement, the Government of Canada announced the temporary elimination of interest on CSLs and Canada Apprentice Loans (CALs). Pending parliamentary approvals and at a cost of $329.4 million, this measure will take effect on April 1, 2021, and be in place for one year, bringing much needed relief to 1.4 million Canadians who are looking for work or are otherwise in the early stages of their careers.

• Following the cessation of the CESB, the Government of Canada new income supports included enhanced Employment Insurance (EI) benefits and a suite of three recovery benefits, namely the Canada Recovery Benefit (CRB), the Canada Recovery Caregiving Benefit (CRCB) and the Canada Recovery Sickness Benefit (CRSB). Students and recently graduates may receive these benefits provided that meet the eligibility requirements.

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