Expand Disability Supports for Student Aid

Summary#

A proposed change published in the Canada Gazette on December 18, 2021 would widen who can get disability supports through the Canada Student Financial Assistance Regulations and related rules. The change would let students and loan borrowers with a long-lasting but not necessarily permanent disability access the same grants, equipment funding, and repayment help now aimed at people with permanent disabilities. The regulations are proposed to come into force on August 1, 2022, and the government invited comments for 60 days after publication.

What it does#

• Adds a new definition: persistent or prolonged disability, meaning a functional limitation caused by certain impairments that has lasted, or is expected to last, at least 12 months.
• Updates the definitions of permanent disability and severe permanent disability to explicitly include functional limits from intellectual, cognitive, learning, communication, and sensory impairments.
• Changes how "full‑time" and "part‑time" study are counted:
  • Full‑time defined as 60% or more of a full course load.
  • Part‑time defined as 20% to less than 60%.
  • Students with a disability who are enrolled at 40%–60% of a full load may choose to be treated as full‑time for aid purposes.
• Extends eligibility for disability-targeted supports to people with a persistent or prolonged disability, including:
  • The grant for students with disabilities and the grant for services and equipment for students with disabilities.
  • The special repayment assistance program for borrowers with disabilities.
  • Use of the extended maximum of 520 weeks of student financial assistance (instead of the standard 340 weeks for most students).
• Applies similar definition and eligibility changes to the Canada Student Loans Regulations and the Apprentice Loans Regulations.

Who's affected#

• Primarily students and borrowers with long‑lasting disabilities that are not classified as strictly permanent today. The government estimates about 40,000 recipients on average per year would benefit.
  • About 30,000 students per year could newly qualify for the renamed grant for students with disabilities.
  • About 10,000 borrowers per year could newly qualify for the enhanced repayment assistance.
• The changes affect delivery partners, such as provincial and territorial student‑aid authorities that work with the Canada Student Financial Assistance Program to assess eligibility. Quebec, Nunavut and the Northwest Territories operate alternative arrangements and would receive alternative payments.
• The federal department leading the change is Employment and Social Development. Small businesses are not expected to be affected.

Why it matters#

• In practical terms, more students with long‑term health, learning, cognitive or sensory challenges would get non‑repayable grants, help paying for equipment and services, and stronger loan relief. That can make college and university more affordable for people who currently fall outside the "permanent disability" rules.
• The government’s cost‑benefit analysis estimates total monetized benefits of $1,058 million and costs of $822 million (present value) over 10 years, giving a net benefit of $236 million and a benefit‑to‑cost ratio of about 1.3 to 1. These are projections and depend on assumptions about take‑up and outcomes.
• Supporters say the change could reduce dropouts, raise graduation and employment rates for people with disabilities, and narrow income gaps. The proposed rules are still open for comment (the 60‑day comment window) and were slated to come into force on August 1, 2022 if adopted.