Economic Action Plan 2015 proposes to provide $119 million over four years, starting in 2016–17, to reduce the expected parental contribution under the Canada Student Loans Program needs assessment process.
The Canada Student Loans Program currently assumes that parents will contribute a specific amount to their dependent child’s education. Many parents of children in post-secondary education are in a position to contribute to their child’s education, but not all have the financial flexibility to do so. Canadian families can face competing financial pressures as they care for aging family members while raising children, or balance other obligations on the family budget. As a result, some postsecondary students receive less support from the Canada Student Loans Program, or none at all, under an assumption that their parents can contribute a specific amount.
Economic Action Plan 2015 proposes to reduce the expected parental contribution under the Canada Student Loans Program needs assessment process. Reducing the parental contribution better recognizes the financial realities faced by Canadian families. This measure would provide increased support to approximately 92,000 students.