Pandemic Relief: A Triple Benefit for Students

Beth Graddon

There are three important income support programs for post-secondary students in Canada today, but sorting them all out could be problematic, especially at tax filing time. Last week, two new measures were introduced: the Canada Emergency Student Benefit and the Canada Student Service Grant.  The third is of course, the Canada Emergency Response Benefit (CERB), which is linked to the Canada Emergency Wage Subsidy (CEWS), which over 10,000 businesses applied for on Monday.  

All three could potentially help students who are unlikely to find jobs in the upcoming months, and one even creates incentive to earn the work experience they need while helping others during the pandemic. But, if income is under $1,000, the CERB might still be the best option.  Here’s what you need to know:

The Canada Emergency Student Benefit will be available through the CRA from May-August 2020 and can be accessed by students who aren’t eligible for the $2,000 CERB (Canada Emergency Response Benefit) based on its existing criteria.

To apply for the Student Benefit, the following criteria must be met:

• Students and recent grads can receive $1,250 per month from May to August only.
• Students taking care of someone else (due to the pandemic) or those with a disability will receive a top-up, for a total of $1,750 per month.
• To be eligible, students must be enrolled currently, enrolled to attend school in September, or have graduated in December 2019.
• Students who expected to graduate this spring should classify as “currently enrolled”.
• Students employed but earning less than $1,000 per month will be eligible.

Of course, some students do also qualify for the CERB – provided they have made a minimum of $5,000 in the last 12-months and are currently making less than $1,000 per month. The introduction of the new programs helps to fill the gap for those who don’t meet those eligibility requirements.

A new Canada Student Service Grant was also announced, which was designed to help students gain work experience while helping their communities during the pandemic. Individuals who volunteer over the summer in ways that help prevent the spread of COVID-19 can receive between $1,000 and $5,000, dependent upon the number of hours worked. Further details are not yet available.

In addition, Canada Student Grants have been doubled: eligible full-time students can receive up to $6,000, and $3,600 is available for part-time students in 2020-2021. Canada Student Grants for students with permanent disabilities and students with dependents will be doubled as well.

The government also announced changes to financial assistance, and enhancements to the Canada Student Loans Program for 2020-2021 to offer additional support. This week’s new measures supplement aid for students previously introduced, including:

Waived student loan payments. A six-month interest-free moratorium has been put on the repayment of Canada Student Loans until the end of September. There is nothing to apply for; simply stop paying in the pause period. 

Be sure to join us at the Virtual CE Summit on May 13 for strategies students, individuals, business owners and seniors can use to cushion the economic fallout from the pandemic. 

Additional educational resources: RSVP BY MAY 11. Enrol now for the Virtual CE Summit to get all the technical details of the COVID-19 Canada Emergency Response provisions, and their related tax audit requirements. By enrolling in the Virtual CE Summit now, you will also have access to the online Emergency Pandemic Response Benefits Course. This is Canada’s first online certificate training course for professionals in the Tax, Bookkeeping and Financial Services.

It’s a sought-after educational solution you need now from Knowledge Bureau in a new format: a professional online course plus interactive live virtual meeting.

Remember:  The online learning release is available now on the Virtual Campus, and the interactive Zoom event will take place on May 13. Deadline for enrolment is May 11.

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