Canada Allocates $7.3 Billion for Student Grants and Loans

The Government of Canada has announced an allocation of $7.3 billion in grants and interest-free loans for students for the current academic year. This funding is part of measures outlined in Budget 2024. The announcement was made by the Honourable Chrystia Freeland, Deputy Prime Minister and Minister of Finance, on September 10, 2024.

Key components of the funding include:

• Increase in Canada Student Grants: Full-time Canada Student Grants will rise from $3,000 to $4,200 per year. Grants for part-time students, students with disabilities, and those with dependants will also see proportional increases.
• Interest-Free Loans: Interest-free Canada Student Loans will increase from $210 to $300 per week.
• Rent Support: The calculation for determining students’ financial need will be updated to reflect current housing costs, benefiting approximately 79,000 students.
• Credit Screening Changes: Credit screening for students aged 22 and older will be eliminated, allowing more adults to access student aid.

According to the government, this funding is expected to benefit 587,000 students through $2.4 billion in grants and 652,000 students through $4.9 billion in interest-free loans. The government has stated that these measures aim to ensure that financial barriers do not prevent students from pursuing post-secondary education.

This initiative follows a trend of increasing federal support for students, which has averaged $38.6 billion annually since 2016, allowing many young Canadians to access education regardless of their financial background. The government has also highlighted that since April 1, 2023, interest charges have been eliminated on all Canada Student Loans and Canada Apprentice Loans, saving borrowers an average of $610 annually on interest payments.

The funding is part of broader efforts to enhance support for students, including a $2.6 billion investment aimed at training talent and supporting research initiatives.