The federal government will invest approximately $22.5 million dollars in Canadian student loans and grants for ten years starting Aug. 1 to increase part-time student income eligibility thresholds, according to a government press release.
These changes will be effective in time for the 2012-2013 school year, according to the Human Resources and Skills Development Canada (HRSDC) media relations office.
An estimated 2,500 more part-time students will receive aid in year one of the program with 8,000 by the fifth, said Kellie Leitch, the parliamentary secretary for human resources and skills development.
About 500 part-time students will receive a Canada student grant in the first year of the program with up to 1,500 students in the fifth year, according to the press release.
To qualify for these loans and grants, students must have income below the appropriate threshold for their province and family size, according to the media relations office.
The income eligibility thresholds and the amounts by which they will be increased vary by province and family size, and are different for loans and for grants.
In Ontario, the income threshold for a part-time loan for a single person will increase from approximately $26,000 to $42,000, and the income threshold for grants will increase from approximately $14,000 to $23,000, according to the media relations office.
“Our Government is delivering on our commitment to support part-time students by enabling more low and middle-income Canadians to attend school while working,” said Diane Finley, Minister of Human Resources and Skills Development.
The increase adds to the government’s ongoing process to help post-secondary students, as Canada’s Economic Action Plan already took away interest payments on part-time student loans, according to a Canadian Alliance of Student Associations (CASA) press release.
“At a time when students face the increased challenge of working while studying this is a positive investment,” said Zachary Dayler, national director of the Canadian Alliance of Student Associations.
Additional changes will be made to Canada Student Loans and Grants, including raising the income eligibility for full-time grants for low and middle-income students, and streamlining and modernizing the delivery of student financial assistance, according to the federal government.
“Our government’s top priorities are job creation, economic growth and long-term prosperity for Canadians,” Leitch said.
“We recognize the important role post-secondary education and training plays in ensuring a strong, competitive and flexible workforce in the future.”
