Canada announces $7.3 billion support for post-secondary students

The Government of Canada has unveiled a significant financial support package for post-secondary students, amounting to $7.3 billion in grants and interest-free loans. This initiative, announced by Finance Minister Chrystia Freeland in Nanaimo, British Columbia, is part of the measures outlined in Budget 2024. The funding aims to enhance access to education for students from diverse financial backgrounds, particularly targeting Millennials and Gen Z. Key changes include an increase in Canada Student Grants, allowing full-time students to receive up to $4,200 annually, a rise from the previous $3,000. Part-time students, those with disabilities, and students with dependents will also benefit from increased financial support. Additionally, the government has modernized the housing cost calculation for determining financial need, a system that had not been updated since 1998, which is expected to aid around 79,000 students. Another significant adjustment is the removal of credit screening for students over 22 years old, facilitating access to loans for older students with low credit scores. This change is anticipated to enable approximately 1,000 more Canadians to return to school this academic year. Overall, 587,000 students will benefit from $2.4 billion in grants, while 652,000 will receive $4.9 billion in interest-free loans. Furthermore, the federal government is investing $2.6 billion in research and training, which includes increased funding for graduate scholarships and fellowships. The initiative also expands loan forgiveness for graduates working in rural and remote areas, adding new professions to the eligibility list, thereby encouraging more graduates to serve in underserved communities.