Budget 2021 measures under new Canada Student Financial Assistance program begin August 1st

SURREY, BC, July 30, 2021 /CNW/ - Young people have been among the hardest hit throughout the pandemic – experiencing more job losses than any other age demographic. Since the beginning of the pandemic, the Government has moved swiftly to implement a number of measures to ensure students and recent grads have access to the financial assistance they need to help support their post-secondary education. These measures included the historic Canada Emergency Student Benefit, which provided income support to over 700,000 students last summer and the creation of over 300,000 youth and student employment opportunities since the start of the pandemic.

As Canada's economy recovers, the Government is continuing to make historic investments to ensure that students continue to have the supports and opportunities they need to build a better future for themselves. Today, the Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough visited Kwantlen Polytechnic University in Surrey, British Columbia to speak with students about the $4.5 billion of funding from Budget 2021 that will support greater access to post-secondary education. Under the new Canada Student Financial Assistance Program (CSFA Program), students will have access to direct financial support through the form of Canada Student Grants (CSG), Canada Student Loans and Canada Apprentice Loans, making it easier for them – as well as recent graduates – to pay off their student debt.

More than 580,000 students each year rely on federal grants and loans to help them cover the cost of their tuition, school supplies, and living expenses. In 2020, the Government doubled Canada Student Grants (CSG) for one year, this investment helped cover approximately 90 per cent of the average undergraduate tuition in Canada for students who needed it the most.

As of August 1, 2021, the Government is extending the doubling of CSG for an additional two years. This means that the maximum amount available for the CSG will be up to $6,000 for full-time students and $10,000 for students with disabilties until July 31, 2023. The Government is also making permanent the flexibility for students to use their  current year's income when applying for the CSG, so those in financial need will not have their previous workforce participation count against them.

The Government recognizes that many graduates are struggling to begin their careers in a challenging labour market. That is why the waiver of interest accrual on student and apprentice loans has been extended to March 31, 2023. This will mean savings for approximately 1.5 million Canadians repaying student and apprentice loans, the majority of whom are women.

Looking to the future, Budget 2021 will make post-secondary financial supports more accessible over the long term. The Government will extend disability supports under the CSFA Program beyond recipients with life-long disabilities to recipients whose disabilities are persistent and prolonged. This change will benefit an estimated 40,000 recipients with non-permanent disabilities each year allowing access to up to $22,000 in grants, in-study supports, and specialized repayment assistance on their loans.

The Government also intends to enhance the Repayment Assistance Plan so that no one with an income of $40,000 or less will have to make payments on their student loans. This enhancement would support an estimated 120,000 additional Canadians with student and apprentice loan debt each year.

Taken together, the Government of Canada's response to the current crisis represents the largest ever investment in young Canadians and one of the largest youth support packages around the world. By investing in our young people today, we are securing Canada's growth and economic prosperity for future generations.

Quotes

"Young Canadians must be at the center of Canada's recovery not only to help them rebound today, but to invest in their future success and the long term prosperity of our country. Post-secondary education is an incredible opportunity that all Canadians deserve the chance to pursue. That is why it is so important that we reduce the barriers for young Canadians with disabilities as they make that transition. Investing in higher education is how we can level the playing field and ensure every Canadian has a real and fair chance at success."
– The Minister of Employment, Workforce Development and Disability Inclusion, Carla Qualtrough

"For many students at Kwantlen Polytechnic University and across Canada, financial support is a key factor in their ability to study and to succeed. KPU is where thought meets action so it is appropriate that Minister Qualtrough is here to not just to discuss, but also to deliver more financial assistance for students. It is wonderful to hear that this support extends to individuals facing persistent and prolonged disabilities, recent graduates struggling in the current labour market and Canadians affected by the pandemic who want to enhance their skills." – Dr. Alan Davis, President and Vice Chancellor, Kwantlen Polytechnic University

Quick Facts

• Budget 2021 invested $5.7 billion over the next five years to help young Canadians pursue and complete their education, acquire new skills and access more work opportunities. This is on top of the $7.4 billion already invested in young Canadians during the pandemic.
• Every year, the Government of Canada provides repayment assistance to approximately 350,000 borrowers. Currently, borrowers on RAP do not have to make payments unless they are earning at least $25,000 per year.
• Provinces and territories that do not currently participate in the CFSA program will continue to receive equivalent compensation from the Government of Canada for their own student financial assistance programs that offer comparable benefits to the CFSA program.
• Also coming into effect on August 1, 2021, the Government is extending the Skills Boost top-up for two years to support Canadians wanting to return to school who have been out of high school for ten years or more

Associated Links

Budget 2021

Student Financial Assistance

Canada Student Loans - Overview

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SOURCE Employment and Social Development Canada