Canada Gazette, Part I, Volume 155, Number 51: Regulations Amending the Canada Student Financial Assistance Regulations

December 18, 2021

Statutory authority
Canada Student Financial Assistance Act

Sponsoring department
Department of Employment and Social Development

REGULATORY IMPACT ANALYSIS STATEMENT

(This statement is not part of the regulations.)

Executive summary

Issues: In Budget 2021, the Government of Canada announced its intention to expand access to disability supports offered by the Canada Student Financial Assistance Program (CSFA Program) for students with a persistent or prolonged disability.

The CSFA Program currently offers disability supports to students and borrowers whose disabilities are expected to be permanent. Therefore, students and borrowers with disabilities that are not permanent — but who face similar costs and barriers — have not been supported by the CSFA Program’s additional benefits for students and borrowers with permanent disabilities. Furthermore, the CSFA Program’s definitions of permanent disability and severe permanent disability do not reflect modern language related to impairments or functional limitations faced by persons with disabilities.

Description: Amendments to the Canada Student Financial Assistance Regulations, the Canada Student Loans Regulations, and the Apprentice Loans Regulations would allow students and borrowers who have a persistent or prolonged disability to be eligible for CSFA Program disability supports offered to students with permanent disabilities (e.g. grants, in-study benefits and targeted repayment assistance). Related, amendments to the definitions of permanent disability and severe permanent disability would also bring consistency in the language across the regulatory definitions pertaining to disability.

Rationale: The amendments to expand the CSFA Program’s disability supports to students and borrowers with a persistent or prolonged disability are expected to benefit an estimated 40 000 recipients with persistent or prolonged disabilities (on average) per year. In addition, together with the amendments modernizing the definitions of permanent disability and severe permanent disability, these proposed measures would remove barriers to inclusion that students and borrowers with disabilities continue to face. The amendments would result in a benefit to cost ratio of 1.3 to 1, with the net monetized benefit of expanding disability supports to students and borrowers with a persistent or prolonged disability estimated at $236 million (net present value) over ten years. There would be no monetary benefits or costs associated with the amendment to modernize the definitions, as the amendments would provide clarity and consistency to the regulatory definitions related to disability without impacting the scope of their applicability.

Issues

Expanding eligibility for disability supports

Students and borrowers with disabilities face some of the highest costs and most significant barriers to long-term academic and career success. Every year, the CSFA Program supports over 75 000 students and borrowers with permanent disabilities through enhanced grants, in-study benefits and specific repayment assistance. However, these supports are not available to students and borrowers whose disabilities are persistent or prolonged, but not permanent.

Modernizing disability definitions

While the current regulatory definitionsfootnote 1 of permanent disability and severe permanent disability have been interpreted to capture a wide range of impairments and functional limitations, the two terms “physical” and “mental” in those definitions do not explicitly recognize the full spectrum of impairments or functional limitations that persons with disabilities may face.

In contrast, the Accessible Canada Act definition of disability is broad, and expands on the mental and physical impairments that can exist to include “a physical, mental, intellectual, cognitive, learning, communication or sensory impairment — or a functional limitation.” Budget 2021’s announcement to expand CSFA Program disability supports to those with a persistent or prolonged disability presents the CSFA Program with the opportunity to modernize the definitions of permanent disability and severe permanent disability, and to establish the new definition for persistent or prolonged disability, in keeping with the Accessible Canada Act’s definition of disability.

Background

The CSFA Program provides eligible students with grants and loans to help pay for post-secondary education (PSE) at a designated college, university or other post-secondary institution. In addition, when students leave school, the CSFA Program offers a number of measures designed to help borrowers who are experiencing financial difficulty in repayment.

Canada Student Grants and Canada Student Loans are available to students from nine provinces (British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island) and Yukon. In these jurisdictions, students receive both federal and provincial/territorial student aid. Quebec, Nunavut and the Northwest Territories receive alternative payments from the Government of Canada to administer their own student financial assistance programs.

The CSFA Program offers a number of upfront, in-study and in-repayment supports for students with disabilities, such as the following:

Since 2019, the Government of Canada has made a number of investments in the CSFA Program to help students and borrowers with disabilities access and afford PSE, such as the following:

Students and borrowers with disabilities also benefit from recent CSFA Program improvements that are available to all students and borrowers. For example, since 2019 the Government of Canada has

The CSFA Program operates under three separate acts and three separate regulations. The Canada Student Loans Act and the Canada Student Loans Regulations (CSLR) provide authority to administer guaranteed CSLs (issued from 1964 to 1995), whereas the Canada Student Financial Assistance Act (CSFAA) and the Canada Student Financial Assistance Regulations (CSFAR) provide authority to administer risk-shared CSLs (issued from 1995 to 2000) and direct CSLs (issued since 2000). In addition, the Program administers CALs under the Apprentice Loans Act (ALA) and Apprentice Loans Regulations (ALR).

CALs were introduced in 2015 to make funding available to apprentices registered in a Red Seal trade to help with the cost of technical training needed to complete their apprenticeship program. CAL borrowers are able to avail of the same Repayment Assistance Plan for Borrowers with Permanent Disabilities offered to CSL borrowers.

Permanent disability benefits were first introduced in 1983 with a provision allowing for loan forgiveness for borrowers with permanent disabilities. Further supports that shared the same definition of permanent disability were introduced over the years. This shared definition diverged in 2009 when the loan forgiveness measure was revised to support those specifically with a “severe permanent disability” rather than a “permanent disability.” Permanent disability continued as the required disability status for other supports.

Objective

The objectives of the regulatory amendments are to remove barriers to inclusion faced by persons with disabilities by making CSFA Program disability supports available to students and borrowers with a persistent or prolonged disability and by modernizing the CSFA Program’s definitions of disability in keeping with the Accessible Canada Act definition of disability.

Description

The following amendments to the CSFAR are proposed:

The following amendments to the CSLR are proposed:

The following amendments to the ALR are proposed:

Regulatory development

Consultation

The CSFA Program regularly engages with stakeholders, including student groups, borrowers, and provinces and territories, through the National Advisory Group on Student Financial Assistance (NAGSFA) and the Intergovernmental Consultative Committee on Student Financial Assistance (ICCSFA). In addition, for this measure, the CSFA Program is reaching out to the broader disability community, with support from the Office of Disability Issues (ODI) in Employment and Social Development Canada. Through this connection, the CSFA Program will be leveraging consultations and outreach that was done during the development of the Accessible Canada Act as well as ongoing engagement that the ODI is leading to remove barriers to inclusion faced by persons with disabilities (including engagement on the Disability Inclusion Action Plan). Furthermore, the CSFA Program is also engaging the Minister of Employment, Workforce Development and Disability Inclusion’s Disability Advisory Group.

NAGSFA

In 2018, NAGSFA raised concerns regarding the use of permanent disability as the eligibility criterion for CSFA Program disability supports. Specifically, they raised concerns regarding perceived limitations of the permanent disability definition and recommended that funding policies for students and borrowers with disabilities be revised to provide greater assistance, in particular to those students and borrowers with non-visible disabilities. As a result, NAGSFA expressed support when the proposal to expand eligibility for CSFA Program disability supports was announced in Budget 2021.

At a NAGSFA meeting in August 2021, the CSFA Program updated members and sought feedback on plans to implement the expansion of supports to those with a persistent or prolonged disability, as well as to modernize the regulatory definitions related to disability. As a result of the August meeting, general support was reiterated from NAGSFA members. NAGSFA members also urged the CSFA Program to continue consultation and outreach with student stakeholders and to consider revisiting the requirements to demonstrate eligibility for disability-related supports.

ICCSFA

In response to increased pressures on provinces and territories to improve financial aid for students and borrowers with disabilities, ICCSFA has had a long-standing subcommittee, the Students with Disabilities Committee, to specifically look at policy issues related to students with disabilities. The Committee has found that the permanent disability criteria are restrictive and has expressed strong support for expanding disability supports to a wider group of students and borrowers with disabilities.

As a result, ICCSFA endorsed the proposal to expand CSFA Program disability supports to students and borrowers with a persistent or prolonged disability. In part, ICCSFA’s strong endorsement is due to the fact that provinces and territories are responsible for delivering CSFA Program supports, and they often rely on CSFA Program definitions for the purposes of their own student aid measures. Many ICCSFA members have indicated that they would likely pursue a similar change for their own student aid measures. The CSFA Program will continue to work closely with ICCSFA to respond to identified implementation challenges and ensure consistency across jurisdictions.

Minister of Employment, Workforce Development and Disability Inclusion Disability Advisory Group

In July 2021, CSFA Program officials presented the proposed measures to the Minister’s Disability Advisory Group and sought feedback. Advisory Group members broadly supported the proposal; however, they urged that episodic disabilities also be included. Advisory Group members also suggested that the CSFA Program reconsider the requirements to demonstrate eligibility for disability benefits, such that they questioned whether an exclusive reliance on assessments by medical professionals and the requirement to have at least $1 of assessed need are appropriate. While these suggestions are beyond the scope of the current proposal, as Budget 2021 announced only the expansion of disability supports to students and borrowers with persistent or prolonged disabilities, the CSFA Program will explore whether they could help improve operationalization of the measures.

Modern treaty obligations and Indigenous engagement and consultation

The regulatory amendments are not expected to have differential impacts on Indigenous peoples or negative implications for modern treaties, as per Government of Canada obligations in relation to rights protected by section 35 of the Constitution Act, 1982, modern treaties and international human rights obligations.

The proposals included in Budget 2021 were assessed for modern treaty implications as per the Cabinet Directive on the Federal Approach to Modern Treaty Implementation. The assessment found no immediate impacts on modern treaty obligations.

Instrument choice

Expanding access to disability supports to students and borrowers with a persistent or prolonged disability and modernizing the language used to describe impairments experienced by persons with disabilities within the definitions could not be addressed by means other than regulatory amendments. As a result, non-regulatory options were not considered.

Regulatory analysis

Benefits and costs

A cost-benefit analysis was conducted to assess the incremental impacts to stakeholders of extending disability supports to students who have persistent or prolonged disabilities and updating the definitions of permanent disability and severe permanent disability in keeping with the Accessible Canada Act definition of disability, compared to a baseline scenario in which these regulatory amendments are not made. The complete cost-benefit analysis report is available upon request.

The stakeholders that would be most directly affected are students and borrowers with disabilities and the Government of Canada. The 10 participating provincial and territorial governments that work in collaboration to deliver the CSFA Program would be affected indirectly. They would retain the flexibility to decide whether to align their policies with those of the Government of Canada. In addition, Canadian society would be affected indirectly given that PSE helps to mitigate overall income inequality.

Key data sources for this cost-benefit analysis include the CSFA Program’s 2018–2019 Statistical Review (e.g. number of student borrowers with disabilities, spending on disability-targeted supports in past years), external literature on students with disabilities (e.g. labour market outcomes, PSE experiences, financial barriers), and actuarial forecasts provided by the Office of the Chief Actuary (e.g. projected growth in the population of CSFA Program recipients in future years) which are based on demographic information, economic conditions, and the policy parameters of the CSFA Program as of March 2021. In addition, a review of research literature helped to identify the impact of non-repayable funding on student groups, such as low- and middle-income students and older learners, among other student populations.

All monetized costs and benefits were estimated on an annual basis over a 10-year period from the 2022–2023 loan year to the 2031–2032 loan year. The 2022–2023 year is the first year in which the amended regulations will be in effect, and 10 years is the regular span for cost-benefit analyses as it allows sufficient time for the impacts of regulatory amendments to fully materialize. A discount rate of 7% was applied for present value calculations.

Benefits

The total monetized benefits are estimated at $1,058 million (present value) over the period of analysis. This includes $868 million in increased transfers to cash to students and graduates, $166 million from future earnings from reduced dropping out of PSE, and $23 million from additional income taxes on future earnings.

Increased transfers in grants and repayment assistance

The proposed regulatory amendments are expected to result in approximately 30 000 post-secondary students becoming newly eligible for a renamed Canada Student Grant for Students with Disabilities, of which 22% would be expected to utilize the renamed Canada Student Grant for Services and Equipment for Students with Disabilities. This represents a direct transfer to student borrowers. The cost of disbursing additional grants is identified as a cost to the Government of Canada and is equal to the benefit of the direct transfer to student borrowers. The associated cost savings related to the lower amount of loans disbursed (i.e. because a greater portion of borrowers’ financial need is met by grants) are counted separately. Associated costs related to loans include the risk of default and Government interest payments during the in-study and grace periods.

Furthermore, the proposed regulatory amendments are expected to result in approximately 10 000 CSFA Program borrowers becoming newly eligible for the renamed Repayment Assistance Plan for Borrowers with Disabilities who would therefore receive direct transfers in the form of enhanced repayment assistance. All graduates who are newly eligible for the renamed Repayment Assistance Plan for Borrowers with Disabilities would benefit from the Government of Canada making payments toward the principal loan, as this feature is specific to the Repayment Assistance Plan for Borrowers with Disabilities and cannot be received in Stage 1 of the standard Repayment Assistance Plan.

Benefits for students who are in provinces and territories that do not participate in the CSFA Program are also included as the analysis includes costs for additional alternative payments, which would be directly equal to the benefits.

Future earnings potential from reducing the number of students dropping out of PSE and new students pursuing PSE

By increasing access to non-repayable grants, the Government of Canada would improve affordability and encourage students with disabilities to complete PSE and continue on to higher levels of education, which in turn would lead to higher future earnings potential. Future earnings potential is monetized for students who would have dropped out from PSE for financial reasons in the absence of having access to the CSFA Program’s disability-targeted supports. On average, 1 400 beneficiaries who would have dropped out of PSE in absence of these supports would enter the labour market each year and would see an average gross income premium of $12,500 per year. The earning benefits accrued by those otherwise unable to pursue PSE under the baseline scenario are offset by the tuition fees under the regulatory scenario, as this is an additional cost for students who would not have decided to pursue PSE without these regulatory amendments. These benefits are also netted of taxes as these can be considered a separate benefit to the Government of Canada.

Additional federal income taxes from future potential earnings

As the taxes have already been subtracted from future earnings potential figures for students pursuing PSE, it is essential to estimate the additional income taxes the Government of Canada could collect from these higher future potential earnings. On average, an additional $2,200 in income taxes would be collected per student per year.

Qualitative benefits

Students with disabilities who would become newly eligible for the CSFA Program’s disability supports:

Increased likelihood of completing post-secondary education: Students with disabilities face greater barriers to completing PSE, with affordability challenges being one of the most cited reasons for withdrawing from study prior to completion.footnote 2 The CSFA Program’s 2019–2020 administrative data shows that more than 60% of recipients of the Canada Student Grant for Students with Permanent Disabilities were low- and middle-income students. Through reducing financial barriers, research finds that there are positive impacts on PSE completion and persistence.footnote 3 Furthermore, those who complete PSE experience demonstrated socio-economic benefits associated with post-secondary attainment, such as reducing the earnings gap between Canadians with and without disabilities.footnote 2

Reduced PSE-related financial difficulties for grant recipients and recipients of the renamed Repayment Assistance Plan for Borrowers with Disabilities: Students with disabilities often require more time to complete their studies and require accommodations and supports, which can lead to the accumulation of higher debt loads and present additional PSE expenses for this population. New access to the renamed Canada Student Grant for Students with Disabilities would increase the share of grant funding relative to total funding, which is particularly crucial for Canadians with persistent or prolonged disabilities, who face greater challenges with PSE affordability, loan repayment and with the transition to the labour market.footnote 4 For example, in 2017–2018, the three-year default rate of CSFA Program borrowers with disabilities was five percentage points higher than the overall average. Furthermore, periods of economic downturn exacerbate these challenges, as they present negative effects for recent graduates and borrowers; Canadians with disabilities are particularly vulnerable to these effects.footnote 5 The provision of additional grants and enhanced repayment assistance would help more students with disabilities afford PSE and offer greater repayment support.

Decreased unemployment rates and shorter unemployment spells for PSE graduates: Through increasing PSE attainment, more Canadians with disabilities would experience the relatively lower unemployment rates associated with PSE credentials, compared to individuals with high school diplomas or less.footnote 6 The ability to complete PSE is expected to contribute to higher employment rates and greater labour market participation for this population.

Positive intergenerational effects of parental education on children: Post-secondary attainment can have long-term benefits for one’s children. Studies suggest that parental educational attainment has been found to contribute to improved cognitive child development, increased parental investment in child health and education, higher post-secondary enrolment for children and, eventually, higher future earnings.

For Canadian society: These regulatory amendments may help reduce income inequality between Canadians with and without disabilities, as recipients would receive higher financial support and enhanced assistance in the repayment of their federal student loans. As cited in McMahon,footnote 7 Leslie and Brinkman provide an extensive survey of research on the effects of post-secondary education and conclude that post-secondary education tends to lead to reduced income inequality in Canada. These regulatory amendments may also result in greater productivity to businesses and society as they may reduce dropout rates, therefore resulting in more PSE graduates.

Monetized costs

The cost to the Government of Canada for providing additional grants under the proposed amendments is based on estimates using CSFA Program administrative data and projections from the Office of the Chief Actuary. The calculation of the estimated costs also heavily relied on information gathered from Statistics Canada’s Canadian Survey on Disability (2017) and the 2018–2019 CSFA Program Statistical Review, which were used to develop assumptions and estimates concerning the number of beneficiaries who would become newly eligible for the CSFA Program’s disability supports.

As stated above, the cost of distributing additional grants to students (30 000 students per year on average) under the proposed regulatory amendments is the dollar-for-dollar amount of additional grants plus the cost of alternative payments paid to non-participating jurisdictions on these additional grant disbursements. Access to the renamed Canada Student Grant for Students with Disabilities would also reduce the need for student loans leading to cost savings associated with these loans.

The costs of increased access to the renamed Repayment Assistance Plan for Borrowers with Disabilities consist of the costs associated with additional borrowers who could now qualify (10 000 per year), plus the cost of alternative payments paid to the non-participating provinces and territories. The net cost is the difference between these costs and the savings in program costs related to not disbursing as much in CSLs to students as a result of providing additional grants. This considers three different types of CSFA Program savings, such as

The increased volume of applications for the CSFA Program’s disability-targeted supports associated with the proposal would require hiring additional full-time employees to validate and process applications, which would present minor administrative costs to the Government of Canada.

The total monetized costs are estimated at $822 million (present value) over the next 10 years.

Cost-benefit statement
Table 1: Monetized costs (in millions of Canadian dollars)
Impacted stakeholder Description of cost Base year 2022–2023 Second year 2023–2024 Final year 2031–2032 Total (present value) Annualized value
Government of Canada Cost of disbursing additional grants and enhanced repayment assistance (net cost of reduced loans) 73 110 122 819 117
Government of Canada Administration / Additional full-time equivalent 0.3 0.3 0.3 2.1 0.3
All stakeholders Total costs 73 110 122 822 117.3
Table 2 : Monetized benefits (in millions of Canadian dollars)
Impacted stakeholder Description of benefit Base year 2022–2023 Second year 2023–2024 Final year 2031–2032 Total (present value) Annualized value
Students Increased transfers in grants and repayment assistance 76 116 129 868 124
Students Increased future potential earnings of students who otherwise would have dropped out of PSE −8 −12 91 166 24
Government of Canada Additional income taxes from future potential earnings 1 2 4 23 3
All stakeholders Total benefits 69 105 224 1,058 151
Table 3: Summary of monetized costs and benefits (in millions of Canadian dollars)
Impacts Base year 2022–2023 Second year 2023–2024 Final year 2031–2032 Total (present value) Annualized value
Total costs 73 110 122 822 117
Total benefits 69 105 224 1,058 151
NET IMPACT −4 −5 102 236 34
Table 4: Quantified (non-$) and qualitative impacts
Positive impacts Base year 2022–2023 Second year 2023–2024 Final year 2031–2032 Total (present value) Annualized value
Number of students benefitting from increased grants, Repayment Assistance Plan 39 000 40 000 44 000 N/A N/A
Business — additional number of skilled workers available 510 1 026 1 631 14 215 N/A

For borrowers who are newly eligible to receive disability supports due to extending disability supports to those with persistent or prolonged disabilities:

Additional benefits for Canadian society and businesses:

Sensitivity analysis

One way of assessing how sensitive the results of the cost-benefit analysis are to uncertain variables is to observe changes by varying the value of those variables while holding all else constant.

Discount rates of 3%, 5% and 10% were tested in addition to the discount rate of 7% used in the central analysis. Adopting different discount rates does not alter the overall result of the analysis.

Impact of changing the discount rate on the benefits and costs (millions of Canadian dollars)
Discount rate Present value benefits Present value costs Net present benefit
3% 1,281 970 311
5% 1,161 891 270
Central analysis: 7% 1,058 822 236
10% 927 733 194

Differences in median incomes and the estimated income premiums students with disabilities will derive from completing PSE were also examined. Three scenarios were simulated by adjusting the median incomes of the general Canadian population:

In all scenarios, the present value of the costs was unchanged at $822 million. In scenario A, the present value of the benefits was $976 million, for a benefit-cost ratio of 1.2:1. In scenario B, the present value of the benefits was $1,017 million, for a benefit-cost ratio of 1.2:1. In scenario C, the present value of the benefits was $1,253 million, for a benefit-cost ratio of 1.5:1.

Impact of differing earnings on the benefits and costs (millions of Canadian dollars)
Scenario: income premium produced Present value benefits Present value costs Net present value
Central analysis: 11,937 1,058 822 236
A: 9,550 976 822 154
B: 10,744 1,017 822 195
C: 16,104 1,253 822 431

Small business lens

Analysis under the small business lens concluded that the proposed regulations would not impact Canadian small businesses.

One-for-one rule

The one-for-one rule does not apply to these regulatory amendments, as there is no change in administrative burden on businesses.

Regulatory cooperation and alignment

The regulatory amendments are not related to any commitment under a formal regulatory cooperation forum. The ICCSFA is the federal-provincial-territorial body for student financial assistance in Canada, but the organization does not focus on regulatory cooperation. However, the CSFA Program has consulted with provincial and territorial stakeholders, and they have been supportive of the measures. Quebec, Nunavut and the Northwest Territories do not currently participate in the CSFA Program. However, as per the CSFAA, these three jurisdictions receive an alternative payment contingent on their programs having “substantially the same effect” as the CSFA Program.

Strategic environmental assessment

In accordance with the Cabinet Directive on the Environmental Assessment of Policy, Plan and Program Proposals, a preliminary scan concluded that a strategic environmental assessment is not required.

Gender-based analysis plus

These regulatory amendments would support various vulnerable groups of students and borrowers and are expected to have significant benefits from the perspective of gender and diversity. The gender-based analysis plus did not identify any unintended adverse disproportionate or differential impacts resulting from the regulatory amendments.

While the amount of the Canada Student Grant for Students with Permanent Disabilities and the Canada Student Grant for Services and Equipment for Students with Permanent Disabilities provided to a student is not based on income,footnote 8 in 2019–2020, 81.3% of Canada Student Grant for Students with Permanent Disabilities recipients were low- or middle-income students. Literature shows that regardless of the nature of disability, Canadians with disabilities are more likely to have a low income; therefore, it is expected that newly eligible recipients would mirror similar income levels. As a result, households who face the deepest challenges in affording PSE would benefit most from these increased amounts. Since students from families in the lower income quintiles are less likely to pursue higher education than high-income peers, lowering economic barriers for low-income students through non-repayable grants can also promote persistence and likelihood of graduation.footnote 9

Increased access to grants for students who are disadvantaged in the labour market, such as students with disabilities, can increase graduation rates and narrow gaps in PSE attainment and earnings between these populations.footnote 9

Research shows that women are more likely than men to have a disability, which is consistent with the CSFA Program’s administrative data; in 2019–2020, 61.7% of Canada Student Grant for Students with Permanent Disabilities recipients were women. The CSFA Program’s data also indicated that women tend to graduate with debt loads that are approximately 8% higher than the average for men. Therefore, these regulatory amendments are expected to benefit more women than men.

In addition, the regulatory amendments would benefit Indigenous students and Indigenous borrowers. The CSFA Program’s administrative data shows that Indigenous students are overrepresented in the population of students with disabilities within the Program. Furthermore, in 2017, it was found that approximately 19% of the Indigenous population aged 15 to 24 years in Canada reported having a disability compared to approximately 12% of the non-Indigenous population in the same age demographic.footnote 10 In the Canadian population, First Nations, Inuit and Métis are less likely to report good health than non-Indigenous people, with First Nations and Métis being more likely to report chronic health conditions.footnote 11 Indigenous Canadians face affordability challenges that have been exacerbated by the COVID-19 pandemic; in 2020, research found that Indigenous Canadians with disabilities or a long-term condition more frequently reported that the COVID-19 pandemic had a significant impact on their ability to meet basic needs, such as food and transportation costs.footnote 12

In the 2019–2020 loan year, approximately 24% of CSFA Program borrowers with a disability had been out of high school for 10 years or longer. As research demonstrates higher levels of education result in a higher wage premium, some older Canadians with a disability may be looking to up-skill to increase their income, while others may have faced barriers that prevented them from participating in or completing PSE earlier in life. The literature suggests that delays entering PSE are more common for Canadians with a disability; while 77% of Canadian youth without diagnosed health conditions enroll in PSE by their early 20s, this is true for only 70% of youth with neurodevelopmental conditions, and 47% of youth with mental health conditions.footnote 13 These barriers are even greater when older Canadians pursuing PSE also have dependent children. CSFA Program data shows that the total calculated financial need of students with a disability increases when factoring in time out of high school, and presence of dependent children. Through improved access to disability-targeted supports, older learners with a disability would be able to receive greater financial support, both while in study and in repayment. Unlike other grants offered by the CSFA Program, the amount of the renamed Canada Student Grant for Students with Disabilities is not based on income, which can particularly benefit older students who may have higher incomes due to spending more time in the labour market.

While the CSFA Program does not collect information on sexual orientation or gender minorities, LGBTQ+ people are more likely to report having a disability; 39% of transgender people, 40% of bisexual men, 36% of lesbian women, and 36% of bisexual women report having a disability.footnote 14 LGBTQ+ students face significant financial barriers when attending PSE, being more likely to have low incomes and to face high levels of student debt.footnote 15 Research demonstrates that increases to student financial assistance result in lower barriers to accessing and attaining PSE. Given lower incomes and higher prevalence of mental health conditions and disabilities for LGBTQ+ people in Canada, it is expected that this population would benefit from the regulatory amendments, through increased access to non-repayable funding and enhanced repayment support.

While the CFSA Program does not currently collect data on visible minority groups and immigrant students, it is expected that the regulatory amendments would benefit students from these groups. Research demonstrates that visible minorities in Canada are more likely to have low incomes compared to the white population.footnote 16 Furthermore, approximately 54% of visible minority Canadians with long-term conditions and disabilities report that their well-being declined since the beginning of the COVID-19 pandemic.footnote 17 Additionally, research shows that low-income immigrants and refugees are at higher risk of reporting poor health. Approximately 25% of Canadians who immigrated before 2001, 11% of Canadians who immigrated between 2001 and 2010, and 9% of Canadians who immigrated between 2011 and 2016 report having a disability.footnote 18 New Canadians also experience slower integration into the labour market and greater challenges with PSE attainment.footnote 19

Implementation, compliance and enforcement, and service standards

Implementation

It is the intention that the regulatory amendments would come into force on August 1, 2022, to coincide with the beginning of the 2022–2023 school year. This would allow disability-targeted benefits assessed under the revised requirements to be disbursed at the same time as other student financial assistance. This would require coordination with the third-party service provider who operates the National Student Loan Service Centre and with participating jurisdictions that are responsible for assessing students’ eligibility for disability supports. The assessment of eligibility would remain unchanged:

Existing federal-provincial-territorial and stakeholder forums would be used to notify all stakeholders of the changes, and to explain how they would support making student financial assistance more accessible and affordable for students and borrowers with a disability. Social media and web platforms, and news releases would be used to communicate the new measures to student borrowers and other interested stakeholders.

Compliance and enforcement

To support effective management and accountability to students, the CSFA Program would continue to be monitored to ensure effective program performance and integrity. The CSFAA requires that the Minister of Employment, Workforce Development and Disability Inclusion table an actuarial report at least once every three years. This report provides an estimate of program costs and revenues, a 25-year forecast of future program costs and revenues, and an explanation of the methodology and actuarial and economic assumptions used to produce the figures presented in the report. The CSFAA also requires that the Minister table in Parliament an annual report on the CSFA Program, which provides detailed statistics on the program (including the value of the portfolio) and outlines key objectives, initiatives, and accomplishments achieved over a given academic year.

The regulatory amendments do not necessitate changes to the CSFA Program’s compliance and enforcement tools or strategies. The CSFAA also provides sufficient authority for the CSFA Program to ensure that disability supports are not granted to students and borrowers who are not eligible. Subsection 17(1) of the CSFAA provides for a fine of up to $1,000 for students and borrowers who knowingly provide any false or misleading information, including by omission, in an application or other document. Also, section 17.1 of the CSFAA allows for any such student or borrower to be denied additional student financial assistance as well as certain other CSFA Program benefits, including, but not limited to, interest-free periods or repayment assistance periods.

Contact

Jennifer Balcom
Senior Policy Analyst
Program Policy
Canada Student Financial Assistance Program
Employment and Social Development Canada
Email: EDSC.PCAFE.DEF.INV-DIS.DEF.CSFAP.ESDC@hrsdc-rhdcc.gc.ca

PROPOSED REGULATORY TEXT

Notice is given that the Governor in Council, pursuant to section 15footnote a of the Canada Student Financial Assistance Actfootnote b, proposes to make the annexed Regulations Amending the Canada Student Financial Assistance Regulations.

Interested persons may make representations concerning the proposed Regulations within 60 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be sent to the following email address: EDSC.PCAFE.DEF.INV-DIS.DEF.CSFAP.ESDC@hrsdc-rhdcc.gc.ca.

Ottawa, December 9, 2021

Mirza Lončar
Acting Assistant Clerk of the Privy Council

Regulations Amending the Canada Student Financial Assistance Regulations

Amendments

1 (1) The definitions full-time student, part-time student, permanent disability and severe permanent disability in subsection 2(1) of the Canada Student Financial Assistance Regulationsfootnote 20 are replaced by the following:

full-time student
means a person
  • (a) who, during a confirmed period within a period of studies, is enrolled in courses that constitute at least 60 per cent of a course load recognized by the designated educational institution as constituting a full course load,
  • (b) whose primary occupation during that confirmed period is the pursuit of studies in those courses, and
  • (c) who meets the requirements of subsection 5(1) or 7(1) or section 33, as the case may be; (étudiant à temps plein)
part-time student
means a person
  • (a) who, during a confirmed period within a period of studies, is enrolled in courses that constitute at least 20 per cent but less than 60 per cent of a course load recognized by the designated educational institution as constituting a full course load, and
  • (b) who meets the requirements of subsection 12(1), 12.1(1) or 12.2(1) or section 33, as the case may be; (étudiant à temps partiel)
permanent disability
means a functional limitation caused by a physical, mental, intellectual, cognitive, learning, communication or sensory impairment that restricts the ability of a person to perform the daily activities necessary to pursue studies at a post-secondary school level or to participate in the labour force and that is expected to remain with the person for the person’s expected life; (invalidité permanente)
severe permanent disability
means a functional limitation caused by a physical, mental, intellectual, cognitive, learning, communication or sensory impairment that prevents a person from performing the daily activities necessary to participate in the labour force in a manner that is substantially gainful, as defined in section 68.1 of the Canada Pension Plan Regulations, and is expected to remain with the person for their expected life; (invalidité grave et permanente)

(2) Subsection 2(1) of the Regulations is amended by adding the following in alphabetical order:

persistent or prolonged disability
means a functional limitation caused by a physical, mental, intellectual, cognitive, learning, communication or sensory impairment that restricts the ability of a person to perform the daily activities necessary to pursue studies at a post-secondary school level or to participate in the labour force and has lasted, or is expected to last, for a period of at least 12 months; (invalidité persistante ou prolongée)

2 The Regulations are amended by adding the following after section 2:

Election

Person with a disability

2.1 A person who has either a permanent disability or a persistent or prolonged disability and who, during a confirmed period within a period of studies, is enrolled in courses that constitute at least 40 per cent but less than 60 per cent of a course load recognized by the designated educational institution as constituting a full course load, may elect to be considered as a full-time student.

3 (1) Subparagraph 15(1)(j)(i) of the Regulations is replaced by the following:

(2) Subparagraphs 15(1)(j)(ii) and (iii) of the French version of the Regulations are replaced by the following:

4 (1) Subparagraph 20(1)(b)(i) of the Regulations is replaced by the following:

(2) The portion of paragraph 20(2)(a) of the Regulations before subparagraph (i) is replaced by the following:

(3) The description of W in subparagraph 20(2)(a)(ii) of the French version of the Regulations is replaced by the following:

W le revenu familial mensuel de l’emprunteur moins les dépenses mensuelles qu’occasionnent son invalidité et qui ne sont pas couvertes par le régime de soins de santé de sa province ou par son régime d’assurances privé,

(4) Subparagraph 20(3)(a)(i) of the Regulations is replaced by the following:

(5) Subparagraph 20(3)(b)(i) of the Regulations is replaced by the following:

5 The heading before section 34 of the Regulations is replaced by the following:

Grant for Services and Equipment — Students with Disabilities

6 (1) The portion of subsection 34(1) of the Regulations before paragraph (b) is replaced by the following:

34 (1) An appropriate authority or a body authorized by the Minister for a province may make a grant for services and equipment to a qualifying student who has either a permanent disability or a persistent or prolonged disability and who

(2) Paragraph 34(1)(d) of the English version of the Regulations is replaced by the following:

(3) The portion of paragraph 34(2)(b) of the Regulations before subparagraph (i) is replaced by the following:

7 The heading before section 40.01 of the Regulations is replaced by the following:

Grant for Students with Disabilities

8 (1) The portion of subsection 40.01(1) of the Regulations before paragraph (b) is replaced by the following:

40.01 (1) The Minister, an appropriate authority or a body authorized by the Minister for a province may make a grant to a qualifying student who has either a permanent disability or a persistent or prolonged disability and who

(2) The portion of subsection 40.01(2) of the Regulations before paragraph (a) is replaced by the following:

(2) In order to obtain a grant, a qualifying student shall provide, with their loan application, proof of either their permanent disability or their persistent or prolonged disability in the form of

Coming into Force

9 These Regulations come into force on August 1, 2022.

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