In Canada, post-secondary education is a key driver of inclusive economic growth and well-being. It contributes to, among others, higher individual earnings, better health outcomes, stronger social cohesion, positive intergenerational effects, and lower unemployment rates. However, low-income families and other distinct population groups are more likely to face financial and non-financial barriers to accessing post-secondary education. Tuition costs and other costs relating to post-secondary education can be a major barrier to continuing education after completing secondary school. Most students rely on sources of funding such as student grants and loans, money from parents and scholarships, and money from savings and part-time work. Student grants and loans can be particularly critical for students from low- and middle income families who experience financial constraints that would otherwise prevent them from accessing post-secondary education and getting the skills and training they need to succeed in the labour market.
Canada Student Financial Assistance Program – Canada
Abstract
The Canada Student Financial Assistance Program (first operating in 1964 as the Canada Student Loan Program) provides non-repayable Canada Student Grants and interest-free Canada Student Loans to help students access and afford post-secondary education. The Program works in partnership with participating provinces and territories to deliver student financial assistance to eligible students. Alternative payments are made to Quebec, the Northwest Territories and Nunavut, that do not participate, to administer their own programmes. Additional funding is available for students with dependents and students with disabilities. To qualify for student financial assistance, a student must demonstrate financial need and meet residency and other eligibility criteria. Applicants are assessed for federal and provincial grants and loans through a single application process.
On average, for full-time students in participating jurisdictions, approximately 60% of their grants and loans are provided by the Government of Canada, while their province or territory covers the remaining 40%. In the 2021 to 2022 academic year, over 763 000 post-secondary students received financial assistance from the Canada Student Financial Assistance Program. Approximately 544 000 students benefited from USD 3.3 billion in non‑repayable Canada Student Grants, and 558 000 students accessed USD 2.9 billion in interest-free Canada Student Loans.
An evaluation of the Canada Student Financial Assistance Program was published in 2021. Several data sources were used for the evaluation, including focus groups with new recipients of grants and loans, a survey of new recipients of grants and loans, and a post-study survey of former recipients of grants and loans. 91% of new student loan applicants indicated that before they applied for post-secondary education, they were concerned about having enough money to cover their education and living expenses during their studies. 13% of borrowers indicated that they would not have pursued post-secondary studies without the federal portion of their student grants and loans. Almost 40% of borrowers indicated they were unlikely to have enrolled in the same programme without the federal portion of their student grants and loans. Focus group participants indicated that they might have chosen a (typically shorter and cheaper) college programme instead of a university programme, a less expensive programme or institution, or a less intensive or shorter programme. Among borrowers who completed their post-secondary programme, over a third (36%) indicated they would likely not have completed their programme without the federal portion of their student grants and loans. Single parents, students with a disability, Indigenous students and adult learners were among the groups most likely to indicate they would not have completed their post-secondary studies without the federal portion of their student grants and loans.
Further reading
[3] Employment and Social Development Canada (2022), Canada Student Financial Assistance Program Annual Report 2020 to 2021, https://www.canada.ca/content/dam/esdc-edsc/images/programs/canada-student-loans-grants/reports/cslp-annual-2020-2021/csfa-en.pdf.
[2] Employment and Social Development Canada (2021), Evaluation of the Canada Student Loans Program, https://www.canada.ca/content/dam/esdc-edsc/documents/corporate/reports/evaluations/2021-student-loans-evaluation.pdf.
[1] Government of Canada (2023), About the Canada Student Financial Assistance Program, https://www.canada.ca/en/employment-social-development/programs/canada-student-loans-grants.html.
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