Income Thresholds for Student Loans

The Regulations Amending the Canada Student Financial Assistance Regulations (SOR/2024-146) introduces updates aimed at improving accessibility and affordability for post-secondary students in the 2024-2025 academic year. These amendments address income thresholds, loan limits, and the permanent removal of the credit screening requirement for older first-time applicants. These changes come in response to rising educational costs, inflation, and the lingering financial effects of the COVID-19 pandemic, which have increased the financial burden on students pursuing higher education.
Among the key amendments are adjustments to income thresholds, particularly for students with dependents. For example, the annual income threshold for a family of four is now set at $73,624 for full-time students, with slightly lower thresholds for part-time students and new phase-out rates for grants as income rises. Additionally, the temporary 40% increase in Canada Student Grants, introduced during the 2023-2024 academic year, will continue for another year. This means students will receive higher grant amounts, with the Canada Student Grant for Full-Time Students remaining at a maximum of $525 per month, up from the previous $375. Part-time students and students with disabilities will also benefit from this increase. The weekly loan limit for full-time students has been extended to $300, continuing the pandemic-era boost to help cover rising tuition and living costs. One of the most impactful changes is the permanent removal of the credit screening requirement for first-time applicants aged 22 or older, which previously prevented some individuals with poor credit histories from accessing federal student loans and grants. Its elimination is expected to improve access to financial assistance, especially for older students returning to education.
These regulatory changes are a direct response to the inflationary pressures and rising costs of post-secondary education, which have significantly outpaced federal financial support. Between 2006 and 2020, tuition fees rose by 50%, while living costs increased by 37%, making it increasingly difficult for students to afford higher education without additional aid. Extending the temporary increases to grants and loan limits, introduced during the pandemic, provides continued relief to students struggling with affordability. By reducing reliance on private loans with less favorable terms, the government aims to enable students to focus on their studies without taking on excessive work commitments.
These amendments are intended to improve access to post-secondary education, particularly for low- and middle-income students. By maintaining elevated financial assistance levels and removing the credit screening barrier, the government seeks to reduce financial obstacles for students. This is particularly crucial as post-secondary education credentials are expected to be required for two-thirds of jobs by 2028.
The 2024 amendments reflect the Canadian government’s ongoing efforts to alleviate financial pressures on students and ensure broader access to education, recognizing its importance for both individual and national economic prosperity.
Canada (SOR/2024-146) July 10, 2024