As fall approaches, many students are getting ready to return to school. This year, those continuing or beginning post-secondary education will have access to more financial assistance than ever before. Getting a university, college, or trade school education has never been more important. Canada is very fortunate to have one of the best work forces in the world, and thanks to our Conservative Government, new loans and grants for students are helping to further strengthen our country’s work force by continuing to support student financial assistance by ensuring Canadians get the help they need to pay for school and secure a promising future.
Beginning this fall, students and families can take advantage of new grants and repayment assistance that make it easier to manage the cost of post-secondary education. I am pleased to have this opportunity to share some of these new measures with you, and hope that you or someone you know may benefit from them.
New Canada Student Grants
The new Canada Student Grants will assist Canadian families with the cost of higher education by providing money that does not need to be paid back. Borrowers are automatically assessed for these grants when they apply and qualify for a Canada Student Loan. Grants include those for:
- Students from Low-Income Families - $250 per month;
- Students from Middle-Income Families - $100 per month;
- Students with Permanent Disabilities - $2,000 per loan year;
- Students with Dependents - $200 per month, per child;
- Part-Time Students with Dependants – up to $1,920 per loan year;
- Grant for Part-Time Studies – up to $1,200 per loan year;
- Former recipients of the Canada Millennium Scholarship Foundation Millennium Bursary (a Transition Grant).
This new plan will help students having difficulty repaying their Canada Student Loans by allowing them to pay back only what they can reasonable afford. Borrowers can apply for RAP through the National Student Loans Service Centre starting in August 2009. RAP ensures that:
- Loan payments are based on the borrower’s income, level of debt, and family size;
- Borrowers will not make payments exceeding 20 percent of their income toward loans covered by RAP;
- No borrower should have a repayment period of more than 15 years, or 10 years if they have a permanent disability.
- Provided $123 million to streamline and modernize the Canada Student Loan Program and simplified the delivery of financial assistance to students;
- Expanded eligibility for Canada Student Loans to more middle-income families by reducing the amount parents are expected to contribute;
- Increased the length of time for Registered Education Saving Plans to 35 years from 25 years, and extended the maximum contribution period by 10 years;
- Created a Textbook Tax Credit to provide $65 per month for full-time post-secondary students and $20 a month for part-time students;
- Eliminated federal income tax on all income from scholarships, bursaries or fellowships;
- Introduced a tax exemption for elementary and secondary school scholarships from taxation;
- Increased funding for the Canada Summer Jobs program to help students acquire the skills and work experience they need.
Our Government has increased funding to universities and colleges for research and innovation:
- Since 2006 our government has committed more than $7 billion to science and technology initiatives to encourage cutting edge entrepreneurship, improve Canada’s knowledge advantage and ensure that Canada’s well-educated, high-tech workforce can compete and succeed on the world stage;
- This year, through our government’s Economic Action Plan, we have made one of the largest investments in Science and Technology in Canada’s history. Billions of dollars are being put towards such things as building maintenance, repair and expansion projects at universities and colleges, state-of-the-art research equipment and improvements to research laboratories;
- We have taken unprecedented steps to make Canada one of the most attractive places for the world’s best students and researchers. We have increased support for scholarships and internships so that students can improve their skills in these difficult economic times;
- Our Government has also increased funding for scholarships through the Social Sciences and Humanities Research Council by 50 percent (to $75.2 million).
I would like to wish all students the best of luck in their studies during the upcoming academic year!
