Student Grants and Loan Limit Extended

Summary#

These final regulations update the Canada Student Financial Assistance Regulations to continue the temporary increases in student grants and the weekly loan limit for the 2025–2026 loan year. The changes take effect on August 1, 2025 and are intended to give more up-front help to students for that academic year.

What it does#

• Extends the temporary increase to Canada Student Grants for the 2025–2026 academic year. Key new maximums include:

  • Full-time students: $525 per month.
  • Part-time students: $2,520 per academic year.
  • Students with disabilities: $2,800 per academic year.
  • Full-time students with dependants: $280 per dependant per month.
  • Part-time students with dependants: $2,688 per academic year.

• Keeps the weekly loan limit for full-time students at $300 for the 2025–2026 academic year.

• Updates the income thresholds used to decide grant eligibility for the 2025–2026 loan year (selected family-size thresholds shown):

  • 1 person: $37,701
  • 2 people: $53,318
  • 3 people: $65,302
  • 4 people: $75,405
  • 5 people: $84,304
  • 6 people: $92,351
  • 7 or more: $99,751 (Tables 7–11 in Schedule 4 are replaced to reflect these and related numbers.)

• Minor technical updates changing references from "2024" to "2025" in several regulatory provisions.

• Comes into force on August 1, 2025 (or on the day of registration if registered after that date).

Who's affected#

• Students who get federal student aid—both full-time and part-time students.
• Students with dependants and students with disabilities.
• Low- and middle-income students are the main target of the grant increases.
• Numbers from the government’s analysis:
  • About 684,000 students are expected to benefit in 2025–2026.
  • About 593,000 students are expected to get the larger grants.
  • About 367,000 students are expected to benefit from the higher weekly loan limit (of whom 92,000 are loan-only beneficiaries).
• The changes apply through the federal delivery model used in most provinces and territories; Quebec, Nunavut, and the Northwest Territories receive alternative payments rather than federal delivery and are treated differently in the Program.
• The federal government pays the cost of the increases. The regulatory impact statement estimates total government costs (present value) of $1,074 million over 10 years and monetized benefits of $1,761 million, giving a net present value of about $687 million (government analysis).

Why it matters#

• It raises the amount of non-repayable help available to students for one academic year, making studies more affordable in the short term.
• The government says the changes should reduce the share of students with unmet federal need and help some students finish their programs rather than drop out for financial reasons. That can raise future earnings and tax receipts.
• A higher weekly loan cap reduces students’ need to turn to private credit or work extra hours while studying.
• This is a one-year extension of temporary measures, not a permanent change; stakeholders have asked for longer-term certainty.