Student Grants and Loan Limits Extended

Summary#

These are final amendments to the Canada Student Financial Assistance Regulations (registered as SOR/2024-146). They keep higher grant and loan amounts for the 2024–2025 academic year and remove a credit-check rule for some first-time applicants, starting August 1, 2024.

What it does#

• Extends the temporary 40% increase to certain Canada Student Grants for the 2024–2025 academic year (effective August 1, 2024):
  • Full‑time students’ grant raised from $375 to $525 per month of study.
  • Part‑time students’ grant raised from $1,800 to $2,520 per academic year.
  • Students with disabilities’ grant raised from $2,000 to $2,800 per academic year.
  • Full‑time students with dependants: $200 → $280 per dependant per month.
  • Part‑time students with dependants: $1,920 → $2,688 per academic year.
• Keeps the temporary weekly loan limit for full‑time students at $300 (rather than reverting to the previous $210) for the 2024–2025 academic year.
• Permanently removes the credit‑screening requirement for first‑time applicants who are 22 years old or older (effective August 1, 2024).
• Updates Schedule 4 income‑threshold tables (Tables 7–11) for loan/grant eligibility for 2024–2025. Key annual income thresholds in those tables include $36,811, $52,059, $63,760, $73,624, $82,313, $90,170, and $97,395.
• Replaces several references to 2023 with 2024 in the Regulations to reflect the new year.
• The amendments come into force on August 1, 2024, or on the day they are registered if that is later.

Who's affected#

• Students who get federal student aid through the Canada Student Financial Assistance Program, especially:
  • Full‑time students.
  • Part‑time students.
  • Students with dependants.
  • Students with disabilities.
  • First‑time applicants aged 22 or older (they no longer face a mandatory credit check).
• The federal government (costs and projected benefits were estimated).
• Provinces and territories that participate in the federal student aid delivery system (students in Quebec, Nunavut, and the Northwest Territories receive alternative payments from the federal government and may be affected differently).
• Indigenous students and other equity groups could benefit; the government’s analysis says these groups are likely to see positive effects but the measures are not targeted exclusively at them.

Why it matters#

• It makes post‑secondary education more affordable for the 2024–2025 year by increasing non‑repayable grants and allowing larger federal loans up front. That can help students pay tuition and living costs and may reduce the need to take private loans or work excessive hours while studying.
• Removing the credit screening for older first‑time applicants removes a barrier some adult learners faced when applying for federal aid.
• The government estimates about 587,000 students would get increased grants and 297,000 would get increased loans in 2024–2025 (including 82,000 loan‑only beneficiaries). Over 10 years it estimates a present‑value cost to government of about $1,088 million and monetized benefits of about $1,744 million, for a net present‑value gain of roughly $656 million. These are the government’s projections and include assumptions about how increased aid affects completion and future earnings.
• If you are planning post‑secondary studies starting in fall 2024, these changes could increase the amount of federal help you can get and make it easier for some older applicants to qualify.