Concerns have been raised by some experts regarding potential reductions in the Canada Student Grant (CSG) available to post-secondary students, as indicated in Budget 2025.
Alex Usher, the president of Higher Education Strategy Associates (HESA), expressed apprehension, stating that more students might face financial challenges in their education journey. HESA conducted an analysis of the budget’s impact on post-secondary education.
The CSG is aimed at supporting students from low- and middle-income families. Eligibility for the grant is automatically assessed when students apply for provincial or territorial student aid.
Usher noted a lack of additional funding allocated for the CSG in the upcoming years. The government had previously been increasing CSG payments from $3,000 to a minimum of $4,200 by setting aside extra funds since 2020.
When asked by CBC about the possibility of the grant reverting to $3,000, Employment and Social Development Canada (ESDC) responded through a spokesperson, mentioning that further details would be provided in the future.
During the 2023-2024 academic year, the CSG provided $2.6 billion to 586,000 full-time students. According to HESA, there were 1.9 million full-time equivalent enrolments nationwide that year.
Usher warned that the apparent reduction in the grant could lead to increased student debt for those relying on such financial assistance.
Anticipated Reductions Post 2025
Usher explained that in 2019, eligible full-time students were entitled to a maximum of $3,000 annually from the CSG. During the 2019 election, the Liberals pledged to raise the payments to $4,200 per year.
Amid the initial COVID-19 lockdowns in April 2020, the government decided to increase the grant to up to $6,000 annually. This funding level was extended until July 2023.
The 2023 budget reduced payments to $4,200, and the 2024 budget kept this amount for another year.
Budget 2025 outlines a line item indicating a $1.2 billion allocation for the current fiscal year, with gradual decreases in funding each subsequent year until 2030.