Canada Allocates $7.3 Billion in Grants and Loans to Support Post-Secondary Students

Image Credit, Jan Vašek

The Government of Canada has announced $7.3 billion in grants and interest-free loans to support students returning to school this academic year. The funding, part of measures outlined in Budget 2024, was revealed by Finance Minister Chrystia Freeland in Nanaimo, British Columbia.

The increased support includes an extension of the rise in Canada Student Grants, with full-time students eligible for up to $4,200 per year, up from $3,000. Part-time students, students with disabilities, and those with dependents will also see increases. Interest-free loans are being raised from $210 to $300 per week. This move is aimed at boosting access to education, particularly for Millennials and Gen Z, regardless of their financial background.

The government has also modernized the housing cost calculation used to determine financial need for students, which had not been updated since 1998. This change is expected to provide additional financial aid to about 79,000 students. Another adjustment is the removal of credit screening for students over 22, which will make it easier for older students with low credit scores to access student loans. This is expected to help around 1,000 more Canadians return to school this year.

With these changes, 587,000 students will benefit from $2.4 billion in grants, and 652,000 students will receive $4.9 billion in interest-free loans. In addition, the federal government is investing $2.6 billion in research and training, including increased funding for graduate scholarships and fellowships.

The government also expanded loan forgiveness for graduates working in rural and remote communities, adding professions such as dentists, social workers, and teachers to those already eligible, like doctors and nurses.

The federal government is urging provinces that still charge interest on student loans to follow the example set by the federal program, which eliminated them in 2023. Provinces such as Quebec and the Northwest Territories, which do not participate in the federal loan program, can access funding to provide comparable support to their students.