Some analysts express worries that higher education students may face reduced financial support from the Canada Student Grant (CSG) as indicated in Budget 2025. Alex Usher, the head of Higher Education Strategy Associates (HESA), highlighted concerns about the impact of the budget on post-secondary education.
The CSG serves students from low- and middle-income families, automatically evaluated during the application process for provincial or territorial student aid. Usher observed no planned increments for the CSG in the forthcoming years. Previously, additional funding was allocated to boost CSG payments from $3,000 to a minimum of $4,200, but no such provisions were found for the future.
When questioned by CBC, Employment and Social Development Canada (ESDC) did not confirm whether the grant would revert to $3,000, stating that more details would be shared in due course. In the 2023-2024 academic year, 586,000 full-time students received $2.6 billion through the CSG, amid 1.9 million full-time equivalent enrollments nationwide.
Usher warned that the apparent reduction could result in higher student debts for those reliant on the grants. Over the years, there have been fluctuations in CSG payments. The Liberals pledged to raise the maximum amount to $4,200 annually during the 2019 election. Subsequently, in response to the early COVID-19 lockdowns in 2020, the government temporarily increased the grant to $6,000 yearly, renewing this until July 2023.
Following this, the payments were reduced to $4,200 in the 2023 budget, remaining unchanged in the 2024 budget. Budget 2025 outlines a $1.2 billion allocation for the current fiscal year, with gradual reductions planned each year until 2030, implying a potential drop in the CSG. Usher expressed uncertainty about this reduction, citing the budget’s ambiguous construction.
Other experts shared similar interpretations, anticipating a decrease in the CSG. Various budgetary proposals, such as a summer jobs program and funding for Canada Research Chair positions, could impact post-secondary institutions and students. While students appreciate these measures, potential cuts to the grant pose a significant concern, especially given rising rates of youth unemployment and food insecurity.
The University of Ottawa Students’ Union president, Jack Coen, criticized the lack of transparency surrounding the grant reduction, labeling it as “disingenuous.” The uncertainty surrounding the grant’s future is unsettling for students relying on it for educational expenses. Despite the potential grant reductions, analysts believe that students will not be dissuaded from pursuing higher education but may face increased financial burdens post-graduation.
The upcoming budget vote in Parliament will shed light on the future of the CSG and its implications for students and post-secondary education.