Federal government extends temporary increase to financial aid

On March 23, Patty Hajdu, the federal minister of jobs and families, announced the extension of the temporary 40 per cent increase to Canada Student Financial Assistance (CSFA) grants and loans for full-time students, part-time students, students with disabilities, and students with dependents.

According to the federal government, roughly 571,000 Canadian students are anticipated to benefit from the increase to non-repayable grants for the 2026–27 academic year.

Additionally, the Canada Student Loan limit has increased from $210 to $300 per week of study.

Abdul Abbasi, chair of the Canadian Alliance of Student Associations (CASA) and vice-president (external) of the University of Alberta Students’ Union (UASU), said that such a change “will [ensure] that students have up to $10,000 in federal loans instead of around $6,500.”

“This provides a relief for students, especially going into the next year … as they plan about their finances, whether it’s on housing, tuition, [or] extra costs, making sure that they … have a bit of relief that this funding is there,” Abbasi added.

Impacts on U of A students following the tuition increase for the 2026–27 academic year

The U of A is increasing its tuition by two per cent for domestic undergraduate and graduate students for fall 2026. Additionally, new international undergraduate students and course-based graduate students will see a 10 per cent increase in tuition for fall 2026.

In light of these changes, the “extra $1,200 in grants and extra $90 [per week] in loans really provides a bit of that support, [which] students need going into the next year,” Abbasi said.

In comparison to provincial loans, these are interest-free loans, which provide better support for students, according to Abbasi.

According to Abbasi, since Canada’s student grants are given based on need, they will also ensure that post-secondary students are properly supported by the federal government.

“This provides students some relief and provides that extra support for students, especially first-generation students, whether those are immigrants, most of low and middle-income families, [and] Indigenous students,” Abbasi said.

CASA pushing to make the extension permanent

According to Abassi, the federal government’s decision is a “meaningful step forward” that reflects advocacy done by CASA.

“CASA has been pushing to make Canada student grants [increase] permanent to make sure that every year … students have that peace of mind, because predictability is a really big aspect,” Abbasi said.

“Students should not be worrying until the end of April to know whether they are going to get an extra $1,200 in grants or $3,000 in loans for the upcoming year … so when I talk about meaningful steps … [it is about] extra support for students,” Abbasi added.

However, Abbasi highlighted that this extension is not permanent, or “the end of what [CASA was] hoping to get.”

“We are continuing to push for that [permanence]. I had a meeting … with Minister Hajdu … and I am really optimistic that it’s going to become permanent in the next budget,” Abbasi said.