Regulations Amending the Canada Student Financial Assistance Regulations: SOR/2026-139
Canada Gazette, Part II, Volume 160, Number 13
Registration
SOR/2026-139 June 22, 2026
CANADA STUDENT FINANCIAL ASSISTANCE ACT
P.C. 2026-628 June 22, 2026
Her Excellency the Governor General in Council, on the recommendation of the Minister of Employment and Social Development, makes the annexed Regulations Amending the Canada Student Financial Assistance Regulations under paragraphs 15(1)(p)footnote a and (q) of the Canada Student Financial Assistance Act footnote b.
Regulations Amending the Canada Student Financial Assistance Regulations
Amendments
1 Tables 7 to 11 of Schedule 4 to the Canada Student Financial Assistance Regulations footnote 1 are replaced by the following:
TABLE 7
| Column 1 Family Size (number of persons) |
Column 2 Annual Income Threshold |
Column 3 Annual Phase-out Rate |
|---|---|---|
| 1 | $38,474 | 0.079968 |
| 2 | $54,412 | 0.057792 |
| 3 | $66,641 | 0.049728 |
| 4 | $76,952 | 0.047712 |
| 5 | $86,033 | 0.045696 |
| 6 | $94,245 | 0.043680 |
| 7 or more | $101,797 | 0.042336 |
TABLE 8
| Column 1 Family Size (number of persons) |
Column 2 Annual Income Threshold |
Column 3 Monthly Phase-out Rate |
|---|---|---|
| 2 | $54,412 | 0.006421282 |
| 3 | $66,641 | 0.005525296 |
| 4 | $76,952 | 0.005301324 |
| 5 | $86,033 | 0.005077338 |
| 6 | $94,245 | 0.004853366 |
| 7 or more | $101,797 | 0.004703986 |
TABLE 9
| Column 1 Family Size (number of persons) |
Column 2 Annual Income Threshold |
Column 3 Weekly Phase-out Rate |
|---|---|---|
| 2 | $54,412 | 0.001284262 |
| 3 | $66,641 | 0.001105062 |
| 4 | $76,952 | 0.001060262 |
| 5 | $86,033 | 0.001015462 |
| 6 | $94,245 | 0.000970676 |
| 7 or more | $101,797 | 0.000940800 |
TABLE 10
| Column 1 Family Size (number of persons) |
Column 2 Annual Income Threshold |
Column 3 Weekly Phase-out Rate |
|---|---|---|
| 4 | $76,952 | 0.001590400 |
| 5 | $86,033 | 0.001523200 |
| 6 | $94,245 | 0.001456014 |
| 7 or more | $101,797 | 0.001411200 |
TABLE 11
| Column 1 Family Size (number of persons) |
Column 2 Annual Income Threshold |
Column 3 Monthly Phase-out Rate |
|---|---|---|
| 1 | $38,474 | 0.01666 |
| 2 | $54,412 | 0.01204 |
| 3 | $66,641 | 0.01036 |
| 4 | $76,952 | 0.00994 |
| 5 | $86,033 | 0.00952 |
| 6 | $94,245 | 0.00910 |
| 7 or more | $101,797 | 0.00882 |
2 The Regulations are amended by replacing "2025" with "2026" in the following provisions:
- (a) section 10.1;
- (b) the portion of subsection 38(4) before paragraph (a);
- (c) the portion of subsection 38.1(3) before the formula;
- (d) the portion of subsection 38.2(3) before paragraph (a);
- (e) subsection 40.01(4); and
- (f) the portion of subsection 40.02(2.1) before the formula.
Coming into Force
3 These Regulations come into force on August 1, 2026, but if they are registered after that day, they come into force on the day on which they are registered.
REGULATORY IMPACT ANALYSIS STATEMENT
(This statement is not part of the Regulations.)
Executive summary
Issues: Affordability remains a key issue for students as they face rising post-secondary education costs, as well as higher prices for food, housing and other necessities. The Government of Canada temporarily increased the Canada Student Grants (grants) by 40% (relative to 2019-2020 levels) and set the weekly limit for Canada Student Loans (loans) to $300 for full-time students for the 2023-2024 academic year. These measures were subsequently extended for the 2024–2025 and 2025–2026 academic years but are set to expire on July 31, 2026, which will cause grants and loans to return to their pre-pandemic (2019-2020) levels. Extending the increases to federal student financial assistance for another year will support the Government of Canada’s commitment to maintaining access to post-secondary education.
Description: The amendments to the Canada Student Financial Assistance Regulations (the Regulations) will extend the current (2025-2026) funding levels of grants and loans for the 2026-2027 academic year.
Rationale: These regulatory amendments are expected to maintain affordability for about 720 000 students during the 2026–2027 academic year. These measures will contribute to better economic outcomes and lower income inequality for eligible students.
Issues
Affordability remains a key issue for students, as they face rising post-secondary education costs, as well as higher prices for food, housing and other necessities. The Government of Canada temporarily increased the Canada Student Grants (grants) by 40% (relative to 2019-2020 levels) and set the weekly limit for Canada Student Loans (loans) to $300 for full-time students for the 2023-2024 academic year. These measures were subsequently extended for the 2024–2025 and 2025–2026 academic years but are set to expire on July 31, 2026, which will cause grants and loans to return to their pre-pandemic (2019-2020) levels. Extending the increases to federal student financial assistance for another year will support the Government of Canada’s commitment to maintaining access to post-secondary education.
Background
Canada Student Financial Assistance Program
The Government of Canada, via the Canada Student Financial Assistance Program (the Program), provides eligible students from low- and middle-income families with grants, loans, and repayment assistance to help them access and afford post-secondary education at a designated college, university, or other post-secondary institution. The goal is to reduce financial barriers to accessing higher education and provide more equitable access for Canadians to participate in post-secondary education.
Grants and loans are available to students from British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, Prince Edward Island, and the Yukon. In these jurisdictions, students receive both federal and provincial student financial assistance. Quebec, Nunavut, and the Northwest Territories receive alternative payments from the Government of Canada to administer their own student financial assistance programs.
During the COVID-19 pandemic, the financial impact on students was significant. Specifically, it affected the ability of low-and middle-income students and their families to pay for post-secondary education-associated costs. In 2020, more than 4 in 10 post-secondary education students surveyed by Statistics Canada were very or extremely concerned about their ability to keep up with their expenses and pay for next term’s tuition or accommodation costs.footnote 2 Coming out of the pandemic, inflationary pressures, rising post-secondary education costs and higher prices for food, housing, and other necessities have made it difficult for many students to afford post-secondary education and manage financially. Difficulties affording post-secondary education can be expected to have long-term impacts for all, especially considering labour market trends and increased demand for post-secondary education credentials. Between 2020 and 2028, two thirds of Canadian jobs will require some post-secondary education.footnote 3 Furthermore, although tuition costs vary across the country and can change based on the program of study, on average, tuition has increased over time. From 2006-2007 to 2019-2020, average tuition for all students in the Program increased by 50% – from $5,600 to $8,400. Over the same period, the average living expenses for all students in the Program rose by 37% – from $9,300 to $12,700. Taken together, average costs rose by 42%, yet the Program support only increased by 30% over the same period. Furthermore, between 2019-2020 and 2023-2024, the most recent year for which data is available, average costs increased by another 20%.
According to Program administrative data, a one-year extension to the increase in grants will reduce the share of students with unmet federal financial need from 65% to 60%. Temporarily extending the increase in the weekly loan limit by an additional year will further reduce the share of students with unmet federal need to 41%.
The 2021 evaluation of the Program found that without access to any government loans and grants, 23% of borrowers would not have pursued post-secondary education at all. In addition, almost half (44%) of borrowers indicated that they would have delayed their studies.footnote 4
Assessment of need
To be eligible for federal and provincial or territorial student financial assistance, a post-secondary student must apply through their online or in-person provincial or territorial student aid office. Their province or territory will conduct a financial need assessment based on the information the student provides in their application, including their student status, as the need assessment methodology differs for full- or part-time enrolment. If the student is determined to have at least $1 of financial need, they are eligible for student financial assistance. The Government of Canada covers approximately 60% of a student’s assessed financial need, with provinces and territories providing the remaining amount.
For full-time students, assessed financial need is determined based on a student’s allowable costs of attending post-secondary education (educational and living expenses) minus their assessed resources. If the result is positive, they are eligible for student financial assistance. If the result is negative, they do not qualify for student financial assistance. In contrast, for part-time students, assessed financial need is based on a student’s allowable educational costs only. In other words, for part-time students, living expenses and resources are not considered in the calculation.
The Program regularly monitors and discusses the costs related to post-secondary education with partners and stakeholders. This ensures the need for assessment for all students continues to evolve as the economy changes.
Canada student grants
Grants were introduced in 2009 to help students from low- and middle-income families, students with dependants, and students with disabilities. They are intended to support students who face the most significant financial barriers in accessing post-secondary education, without increasing their debt. Grants help foster access to post-secondary education, especially for those who are debt adverse, and assist in keeping debt loads manageable. Grants are provided to students first, and then the loan is provided to cover remaining financial need. Eligibility for grants is assessed through a comparison of their family income against the income threshold levels for any given year. Grant amounts are governed by and prescribed in the Regulations.
Grants made up an increasing share of federal support between 2006-2007 and 2023-2024, rising from an average of 7% to 35%.This change was largely driven by permanently increasing grants by 50% in 2016-2017 and then expanding grant access through a more progressive threshold in 2017-2018. The Government of Canada has made additional significant investments in grants over the past decade. Most recently, from 2020-2021 through 2022-2023 academic years, grant amounts were temporarily doubled over pre-pandemic amounts (2019-2020) as part of the COVID-19 emergency response. In addition, grants were temporarily increased by 40% over pre-pandemic (2019-2020) amounts in 2023-2024 and extended in the 2024-2025 and 2025-2026 academic years in response to rising living costs and in recognition that students continue to need financial support to pursue post-secondary education. According to Program administrative data, grants represented 35.1% of total federal assistance disbursed in 2023-2024. Greater grant support has helped keep federal student debt levels relatively stable ($14,602 in 2023-2024, compared to $12,250 in 2006-2007).
Literature suggests that grants increase persistence in post-secondary education and degree attainment. In particular, research indicates that additional grant funding of $1,000 improves persistence and attainment by approximately 1.5 to 2 percentage points.footnote 5
Canada student loans
Loan amounts are governed and prescribed by the Regulations. Loans are designed with the understanding that a post-secondary education credential (e.g. an undergraduate degree or diploma) will position students for success in the labour market, yielding benefits to the individual and Canada. Graduates are well positioned to pay back their loans, mitigating costs to taxpayers and ensuring Program sustainability. The maximum loan support available to students did not increase between 2006 and 2019.
Loans provide additional financial assistance to students, which is important given the increasing need for skilled workers entering the labour market, especially those with post-secondary education.footnote 6 Approximately 5.9 million recent graduates (e.g. high school, apprenticeship, college, and university graduates) are projected to enter the labour market between 2024 and 2033.footnote 6 According to Employment and Social Development Canada’s estimates from the Canadian Occupational Projection System, 75% of new jobs created by economic expansion are projected to be in occupations generally requiring post-secondary education, or in management occupations.footnote 6 Occupations requiring a university degree, or a college or apprenticeship diploma are expected to experience a labour shortage between 2024 and 2033.footnote 6 In addition, there is also an earnings premium associated with post-secondary education. According to a 2023 Statistics Canada study,footnote 7 the income growth for individuals with a bachelor’s degree or higher was greater than for those with a high school diploma or equivalent.
Loans for full-time students are provided up to the lesser of 60% of a student’s assessed financial need or the weekly maximum of $210 ($300 for the 2025-2026 academic year), while part-time loans are provided up to the lesser of a student’s assessed financial need or a maximum outstanding balance of $10,000. The loan for part-time students does not currently have a set weekly limit. Instead, it functions as a rotating line of credit that is capped at $10,000. Since April 1, 2021, interest has not accrued on loans, though borrowers remain liable to pay any interest that may have accrued prior to its elimination.
While the weekly student loan limit of $210 had remained unchanged since the 2005–2006 academic year, it was temporarily increased to $350 in 2020–2021 as a COVID-19 relief measure. Subsequently, the weekly loan limit was temporarily set at $300 for the 2023–2024, 2024–2025, and 2025–2026 academic years in recognition of rising tuition and living costs.
If grants and loans return to their pre-pandemic (2019-2020) level, the average federal student financial assistance provided to students will be approximately $2,300 less for the 2026-2027 academic year.
Objective
The objective of these regulatory amendments is to maintain the affordability of post-secondary education for the 2026-2027 academic year by extending the current (2025-2026) funding levels of grants and loans.
Description
The Regulations will be amended to set the maximum available amount for the academic year starting on August 1, 2026, as follows:
- Canada Student Grant for Full-Time Students: a maximum of $525 for each month of study;
- Canada Student Grant for Part-Time Students: a maximum of $2,520 for the 2026-2027 academic year;
- Canada Student Grant for Students with Disabilitiesfootnote 8 $2,800 for the 2026-2027 academic year;
- Canada Student Grant for Full-Time Students with Dependants: a maximum of $280 for each dependant for each month of study; and
- Canada Student Grant for Part-Time Students with Dependants: a maximum of $2,688 for the 2026-2027 academic year.
The maximum weekly loan limit for full-time students will be set to $300, starting on August 1, 2026, and ending on July 31, 2027.
Regulatory development
The Program regularly engages partners and stakeholders, including student groups, and provinces and territories, through the National Advisory Group on Student Financial Assistance (the National Advisory Group) and the Intergovernmental Consultative Committee on Student Financial Assistance (the Intergovernmental Committee). Through these groups, the Program discusses the affordability of and access to post-secondary education. The Program heard the following feedback regarding these regulatory amendments through these discussions.
Consultation
In the past, stakeholders have been supportive of the temporary increases to student financial assistance. However, they indicated that temporary measures create uncertainty for students when trying to financially plan for their studies, and for educational institutions that often fill financial gaps. Most provinces and territories, student associations, and post-secondary educational institutions advocated for permanent increases to student financial support.
Pre-Budget 2025 consultations
As part of its national pre-budget consultations for Budget 2025, the House of Commons Standing Committee on Finance received submissions from five stakeholder organizations. The Canadian Alliance of Student Associations, Alberta Students Executive Council, and University Students’ Council at Western University each recommended permanently increasing the full-time student grant to $4,200 per year. The British Columbia Federation of Students called for a return to the temporary COVID era doubled grant level of $6,000, while the Canadian Association of University Teachers proposed raising the full-time grant to $7,000 and shifting the student aid model to a 50:50 grant-to-loan ratio.
During a September 2025 meeting, Intergovernmental Committee members expressed support for the continuation of the increase to grants and the weekly loan limit for full-time students; however, they advocated for the increases to be made permanent. Following Budget 2025, the provinces and territories expressed concern that the Government of Canada did not announce its intention to maintain the increases in grants and the weekly loan limit. Several provinces and territories stated that they lacked funding to offset federal funding decreases for students should the increase lapse.
National Advisory Group members expressed support for the continuation of the increases to grants and the weekly loan limit for full-time students. However, they have also expressed concerns about continued temporary extensions, stating that these create financial uncertainty for both students and educational institutions. Additionally, several member organizations recommended further increases to grants. For example, in October 2025, the Canadian Alliance of Student Associations recommended that grants be increased to a maximum of $5,000 per year.
Indigenous engagement, consultation and modern treaty obligations
As required by the Cabinet Directive on the Federal Approach to Modern Treaty Implementation, an assessment of modern treaty implications was conducted. The assessment found no immediate impacts on existing modern treaty obligations. The regulatory amendments do not directly target Indigenous peoples. Nevertheless, Indigenous students could still benefit from the measures. According to Program data, Indigenous peoples are more likely to have unmet financial need compared to the general student population.
Instrument choice
Increasing the maximum grant amounts and the weekly loan limit could not be addressed by means other than regulatory amendments. The Canada Student Financial Assistance Act (the Act) provides that eligibility for grants and loans, and the amounts of grants and loans are prescribed by the Regulations. 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 on stakeholders due to a one-year extension to the increases in grants and loans for the 2026-2027 academic year compared to a baseline scenario in which these regulatory amendments are not made and grants and loans return to their pre-pandemic (2019-2020) levels. A total of 720 000 students are expected to benefit from the regulatory changes. The complete cost-benefit analysis is available upon request at the following email address: DSC.DGA.PCAFE.MCPP-SEC.CSFAP.LB.ESDC@hrsdc-rhdcc.gc.ca.
The stakeholders most directly affected by these regulatory amendments are recipients of student financial assistance and the Government of Canada. The federal government consults with its stakeholders on a regular basis to discuss various aspects of student financial assistance, including the level of funding provided, so no additional consultations were conducted in the development of the cost-benefit analysis.
Key data sources for this cost-benefit analysis include 2023-2024 internal Program administrative data, external literature on post-secondary education persistence, and 2024 actuarial forecasts provided by the Office of the Chief Actuary that are based on demographic information, economic conditions, and policy parameters at the time the report was prepared. This information is used to calculate the additional amount of grants and loans disbursements based on a microsimulation of each student’s financial need and federal funding available under both the baseline and regulatory scenario.
Increased grants for post-secondary students
The regulatory amendments will result in post-secondary students receiving more non-repayable funding during their studies. These grants are a transfer from the Government of Canada to students, and as such, are not treated as a monetized impact for the purpose of the cost-benefit analysis. Students who are in a province or territory that does not participate in the Program will also benefit from the regulatory amendments through the transfer of additional alternative payments to their province or territory. A total of 571 000 students are expected to benefit from the measure in 2026-2027 through a government transfer of $815 million.
Increased loans for post-secondary students
The regulatory amendments will also result in $1 billion additional loans disbursed to students; however, the value of these disbursements is not treated as a monetized impact for the purpose of the cost-benefit analysis because students will repay the money to the Government of Canada. The only cost considered in the monetized impacts is the value of loans expected to default that will not be repaid by students. A total of 422 000 students are expected to benefit from this measure in 2026-2027. Among these beneficiaries, 272 000 students will also receive grants, while the remaining 150 000 students will only receive loans.
Repayment assistance for students
When the Government issues loans to students, it is expected that a portion will be repaid by the Government rather than by students via the Repayment Assistance Plan. This plan allows borrowers whose income falls below a predefined annual income threshold ($45,456 for a single borrower in the 2025-2026 academic year) to make no payment on their loan. The threshold is adjusted upwards for larger family sizes and it increases with inflation each year. Borrowers above the threshold can also be eligible for a reduced payment. The money provided under these conditions represents a transfer and thus is not treated as a monetized impact for cost-benefit analysis purposes. Overall, the Government expects to repay 5.8%footnote 9 of additional loans disbursed ($58.3 million) to students under this plan.
Wage premium benefit for students who complete post-secondary education
By extending the increases to grant and loan amounts to students for the 2026-2027 academic year, the Government of Canada will help reduce funding gaps and encourage students to complete post-secondary education.footnote 10footnote 11 In turn, these measures will improve affordability and lead to higher future earning potential. Based on Census 2021 findings, higher education generates an earnings premium when comparing the incomes of high school graduates and post-secondary attendees. Bachelor’s degree holders report a median income that is 38% higher than high-school graduates, while those with college diplomas report a median income 14% higher than high-school graduates. Those with degrees higher than a bachelor’s degree report a median income 50% higher than high-school graduates.
Future earnings potential is monetized in the final year of study in the 2026-2027 academic year for those students who would have dropped out from post-secondary studies for financial reasons in the absence of these measures. Income is also expected to increase year-over-year based on the real-wage assumption developed by the Office of the Chief Actuary in their 2024 report on the CSFA Program.footnote 12 It is estimated that 6 675 students will remain in post-secondary education in 2026-2027 and complete their degrees as a result of the Regulations, generating a total present value of $549.9 million in earnings for these students over a 10-year period. These benefits are net of taxes.
Cost of non-repaid loans to the Government of Canada
The cost of providing increased loan amounts to students (422 000 students in 2026-2027) under the regulatory amendments includes a risk provision for defaults (6.0%). This provision rate was developed by the Office of the Chief Actuary in their 2023-2024 report on the Program. The default cost to the Government is assessed in year 1. It should be noted that this is a simplifying assumption, as defaults vary by student based on the year of graduation and financial circumstances. Applying this risk provision to the expected additional amount of loans to be disbursed (approximately $1 billion) generates a total present value cost of $60.3 million.
Administrative costs to the Government of Canada
The additional funding provided will encourage some students to remain in post-secondary education instead of dropping out due to financial reasons. As a result, there will be additional administrative costs to process an increased number of student financial assistance applications and to disburse the funds under the regulatory amendments. It is estimated that an additional 6 675 students will apply for and receive financial assistance, each generating administrative costs of $41, for a total present value cost of $0.3 million.
The total monetized benefits for these regulatory amendments are estimated at $549.9 million (present value), while costs are estimated at $60.6 million (present value) over the next 10 years, for a benefit to cost ratio of 9.1:1.
Cost-benefit statement
- Number of years: 10 (2026-2027 to 2035-2036)
- Price year: 2026
- Present value base year: 2026
- Discount rate: 7%
| Impacted stakeholders | Description of benefit | Base year: 2026-2027 | Second year: 2027-2028 | Fifth year: 2030-2031 | Final year: 2035-2036 | Total (present value) | Annualized value |
|---|---|---|---|---|---|---|---|
| Student beneficiaries | Higher future earnings due to students completing post-secondary education | $25.7 | $77.9 | $80.0 | $83.7 | $549.9 | $78.3 |
| All stakeholders | Total benefits | $25.7 | $77.9 | $80.0 | $83.7 | $549.9 | $78.3 |
Note: Numbers may not add up due to rounding.
| Impacted stakeholders | Description of cost | Base year: 2026-2027 | Second year: 2027-2028 | Fifth year: 2030-2031 | Final year: 2035-2036 | Total (present value) | Annualized value |
|---|---|---|---|---|---|---|---|
| Federal government | Loan defaults due to additional disbursements | $60.3 | $0.0 | $0.0 | $0.0 | $60.3 | $8.6 |
| Additional administrative costs to process increased applications | $0.3 | $0.0 | $0.0 | $0.0 | $0.3 | $0.0 | |
| All stakeholders | Total costs | $60.6 | $0.0 | $0.0 | $0.0 | $60.6 | $8.6 |
Note: Numbers may not add up due to rounding.
| Impacts | Base year: 2026-2027 | Second year: 2027-2028 | Fifth year: 2030-2031 | Final year: 2035-2036 | Total (present value) | Annualized value |
|---|---|---|---|---|---|---|
| Total benefits | $25.7 | $77.9 | $80.0 | $83.7 | $549.9 | $78.3 |
| Total costs | $60.6 | $0.0 | $0.0 | $0.0 | $60.6 | $8.6 |
| NET IMPACT | −$34.8 | $77.9 | $80.0 | $83.7 | $489.3 | $69.7 |
Note: Numbers may not add up due to rounding.
Quantified (non-monetized) and qualitative impacts
Positive impacts
- Benefits to students:
- Decreased unemployment rates and shorter unemployment periods for those who complete post-secondary education
- Research indicates that enabling Canadians to afford entering or completing post-secondary education leads to lower unemployment ratesfootnote 13and shorter unemployment periods.footnote 14 It is expected that students who graduate due to these regulatory amendments will have increased employment opportunities compared to those without post-secondary education during current and future periods of economic vulnerability.
- Enhanced health and longevity
- The regulatory amendments are expected to enable more students to access and complete post-secondary education, and literature has consistently associated higher levels of educational attainment with enhanced health outcomes.footnote 15The connection between post-secondary education and health is multi-factorial. For example, higher levels of education create greater awareness of health risks, enable access to resources that promote healthier lifestyles, and facilitate access to careers with safer working conditions.footnote 16
- Intergenerational effects of parental education on children
- The regulatory amendments are not only expected to have positive impacts on direct beneficiaries, but also on children of those who are newly able to obtain post-secondary education.footnote 17 Studies have found that higher educational attainment creates indirect positive benefits for future generations. For example, children of post-secondary education graduates are more likely to attend post-secondary education institutions themselves.footnote 18
- Decreased unemployment rates and shorter unemployment periods for those who complete post-secondary education
- Benefits to Canadian society and businesses:
- Increased availability of skilled workers
- The regulatory amendments will help increase the availability of workers with post-secondary education. The increases to grants and loans are expected to create approximately 7 000 skilled workers over 10 years by enabling students at risk of dropping out in their final year of study for financial reasons to afford to complete their final term and obtain their post-secondary education credential.
- Reduced income inequality, as those who most benefit from the Program are people who have lower income
- Investments in financial assistance facilitate post-secondary education completion, resulting in graduates paying higher income taxes due to Canada’s progressive tax system, which eventually increases social mobility.footnote 19 Additionally, increases in educational attainment help offset the recent increases to income inequality driven by technological advancements and automation in Canada.footnote 19
- Greater productivity to businesses and society due to potentially more people gaining post-secondary education credentials
- Skilled workers are not only more productive, but they increase business production through human capital spillovers that also enhance the productivity of less educated colleagues who learn from them.footnote 20 Additionally, evidence suggests that people with higher education are more likely to engage in entrepreneurship and contribute to innovative ideas in the workplace, which has a direct positive effect on economic welfare by contributing to science and technological development in Canada.footnote 14
- Increased availability of skilled workers
Small business lens
Analysis under the small business lens concluded that the regulatory amendments do not result in any compliance or administrative impacts on small businesses.
One-for-one rule
The one-for-one rule does not apply, as there is no incremental change in administrative burden on business and no regulatory titles are being repealed or introduced.
Regulatory cooperation and alignment
These regulatory amendments are not related to any commitment under a formal regulatory cooperation forum. The Program has consulted with provincial and territorial partners, and they have been in favour of the measures.
Effects on the environment
In accordance with the Cabinet Directive on Strategic Environmental and Economic Assessment, a preliminary scan concluded that a strategic environmental and economic assessment is not required.
Gender-based analysis plus
Extending the increases to grant and loan amounts for the 2026-2027 academic year is expected to benefit certain groups, including low- and middle-income individuals, women, persons with disabilities, students with dependants pursuing post-secondary education, and students who self-identified as being Indigenous. No unintended adverse impacts have been identified.
The regulatory amendments to extend grant increases are expected to significantly benefit students from low- and middle-income families, given that grants target this student population. Research points to the fact that students from lower-income families are less likely to pursue higher education than their peers from high-income families.footnote 21 Reducing economic barriers for lower-income students through non-repayable grants can encourage post-secondary education persistence,footnote 22 resulting in improved grades, increased enrolment, attainment, and graduation.footnote 23,footnote 24,footnote 25
According to 2023-2024 Program data, 59% of student financial assistance recipients were women, suggesting that the regulatory amendments are likely to benefit more women than men. Also, 60% of student financial assistance recipients were under the age of 25, suggesting that the regulatory amendments will likely benefit more younger Canadians.
In 2023-2024, 11% of students in the Program identified as having a disability. Since the grant for students with disabilities is provided to all students with disabilities with assessed financial need, the increase in grant funding is expected to positively affect all students with a disability.
The regulatory amendments are also expected to support parents attending post-secondary education, since administrative data from the 2023-2024 academic year shows that a significant majority of students with dependants are low-income students (78%). Nearly 97% of students with dependants will have unmet need if grant and loan levels return to 2019-2020 levels. In comparison, in the 2023-2024 academic year, when the grant maximum was $4,200 per eight-month study period and the loan limit was $300 per week, 87% of students with dependants had unmet financial need. The unmet financial need of students with dependants was 82% and 79% in 2021-2022 and 2022-2023, respectively, when the grant maximum was $6,000 per eight-month study period and the loan limit was $210 per week.
Although only approximately 5% of Program students self-identified as Indigenous according to 2023-2024 Program data, approximately 82% of the total Indigenous student beneficiaries received grants. Thus, they are expected to benefit from the amendments.
Implementation, compliance and enforcement, and service standards
Implementation
The amendments will come into force on August 1, 2026, for the 2026-2027 academic year.
Compliance and enforcement
The Act requires the Program to table an actuarial report in Parliament 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 Act also requires an annual report on the Program to be tabled in Parliament. The annual report provides detailed Program statistics (including the value of the portfolio) and outlines key objectives, initiatives, and accomplishments achieved over a given academic year.
The Act provides authority for the Program to ensure that grants and loans are not provided to students who are not eligible. Subsection 17(1) of the Act provides for a fine of up to $1,000 for students who knowingly provide any false or misleading information, including by omission, in an application or other document. Also, subsection 17.1(1) of the Act allows for any such student to be denied additional federal student financial assistance as well as certain other Program benefits, including, but not limited to, repayment assistance.
Contact
Erin Hetherington
Director
Program Policy
Canada Student Financial Assistance Program
Employment and Social Development Canada
Email: DSC.DGA.PCAFE.MCPP-SEC.CSFAP.LB.ESDC@hrsdc-rhdcc.gc.ca