Some concerns have arisen among experts regarding potential reductions in the Canada Student Grant (CSG) that post-secondary students may face, as indicated in a line item hidden within Budget 2025. According to Alex Usher, president of Higher Education Strategy Associates (HESA), the budget’s impact on post-secondary education was analyzed by his consulting firm, revealing a potential decrease in financial support for students.
The CSG is a financial aid program designed for students from low- and middle-income families, with all eligible students automatically considered for the grant when applying for provincial or territorial student aid. Usher noted a lack of additional funding allocated for the CSG in upcoming years, despite previous efforts by the government to increase CSG payments from $3,000 to a minimum of $4,200.
Questions were raised to Employment and Social Development Canada (ESDC) by CBC regarding the possibility of the grant reverting to $3,000, to which a spokesperson responded via email that further details would be shared in due course.
In the 2023-2024 academic year, approximately 586,000 full-time students received $2.6 billion through the CSG, with a total of 1.9 million full-time equivalent enrollments recorded across Canada during that period, according to HESA.
Usher expressed concerns that the apparent reduction in CSG funding could result in increased student debt among those who heavily rely on these grants for financial support.
Looking back to 2019, eligible full-time students were initially eligible for a maximum of $3,000 annually from the CSG. During the 2019 election, the Liberals had promised to raise the payments to $4,200 per year. Amid the early stages of the COVID-19 pandemic in April 2020, the government decided to temporarily increase the grant to a maximum of $6,000 annually, a measure that was subsequently extended until July 2023. However, in the 2023 budget, payments were reduced to $4,200, which was maintained in the 2024 budget.
Budget 2025 reveals a line item allocating $1.2 billion for the current fiscal year, with incremental reductions planned in subsequent years until 2030, potentially indicating a downward trend in CSG funding. Usher voiced uncertainty regarding this development, citing concerns over the budget’s overall coherence.
Other experts, who interpreted the budget similarly, concurred that a reduction in the CSG was probable. The Canadian Association of University Teachers, in its pre-budget submission, recommended increasing the maximum CSG payment to $7,000.
Jack Coen, president of the University of Ottawa Students’ Union (UOSU), expressed surprise at the discreet nature of the proposed changes, criticizing the lack of transparency in communicating such adjustments to young Canadians.
Additional budgetary provisions with potential impacts on post-secondary institutions and students include a summer jobs program and funding for Canada Research Chair positions. Sean Joe-Ezigbo, president of the Carleton University Students’ Association, highlighted students’ frustration at the prospect of a grant reduction amidst challenges like rising youth unemployment and food insecurity.
Despite concerns raised by Usher and others, they do not foresee a direct deterrent effect on students pursuing post-secondary education due to lower grants, but anticipate negative consequences post-graduation, such as increased debt levels. The budget is anticipated to undergo parliamentary review and voting on Monday.