The Canada GSL (government student loan) program provides funding to Canadians pursuing post-secondary education. This funding is distributed by the CRA and may be offered as a loan, a grant, or a combination of both.
Most areas of the country work with Canada GSL so a portion of the student loan comes from the provincial and some from the federal government. Students typically receive two payments each year in order to cover tuition for both halves of the school year.
Key Takeaways
- Canada GSL is a student aid program that provides funding from the federal government to help with education-related expenses.
- Deposits are usually made during the first week of September and in early January.
- Full-time students can receive up to $4,200 per year and part-time students can receive up to $2,520, plus more if they have dependents.
- Depending on the size of your family/household, the maximum household income must be between less than $66,942 to be eligible for Canada GSL assistance.
- Canada GSL payments are not taxable.
When you'll receive your Canada GSL deposits
Canada GSL recipients can expect to receive their first payment during the first week of September, and there will be another payment in early January, for the second half of the school year.
How are GSL payments made? The money is typically deposited right into your bank account. This way, you should have the funds you need when tuition fees are due.
However, you'll likely be required to fill out a "pre-study report" or something similar to confirm your enrollment and tuition amounts. If this isn't submitted in time, you may not receive your funding on the standard dates.
How much can I receive for my GSL payment?
The maximum amount you can receive as a Canada GSL payment depends on whether you are a full or part-time student and whether or not you have dependents.
Students will never be offered more than their assessed need.
Full-time students
For the 2023-2024 academic year (August 1, 2023 to July 31, 2024), eligible full-time students can receive grant amounts of up to $4,200, or up to $525 per month of study.
Full-time students with dependents
Full-time students with dependents are eligible for different amounts than those with no dependents – they can receive grant amounts of up to $2,240 per dependent, or up to $280 per month of study, on top of the possible $4,200 available for full-time students.
As an example, this means that if you have 4 small children who live with you while you're enrolled in a post-secondary education program, you can receive up to $13,160 in Canada GSL payments in 2023/2024.
Part-time students
Part-time students enrolled in post-secondary studies can receive grant amounts of up to $2,520 per school year.
Part-time students with dependents
Just like full-time students, part-time students with dependents are eligible for different Canada GSL payment amounts than those without dependents – they can receive a maximum of $2,688 per year.
Is Canada GSL a loan or grant?
Each individual who applies for Canada GSL funding may receive a loan, a grant, or a combination of both. It's dependent on several factors, including where you live and your family income.
If you do receive a grant, you don't have to pay it back. However, a loan must be repaid.
Canada GSL eligibility requirements
To qualify for Canada GSL assistance, you must be:
- A Canadian citizen or permanent resident
- Actively enrolled in an eligible program and educational institution
- Live in an area of Canada that supports the GSL program
- Meet the income specifications (listed below)
Since the purpose of the Canada GSL program is to help with education funding for students who need it most, there are income restrictions in place to help determine whether or not an applicant is eligible.
The table below shows the minimum and maximum income amount restrictions per family size for Canada GSL applicants in 2023/2024:
| Household size | Income threshold to receive the max grant amount | Max income amount before eligibility is cut off |
|---|---|---|
| 1 | $35,429 | $66,942 |
| 2 | $50,104 | $93,709 |
| 3 | $61,365 | $112,041 |
| 4 | $70,859 | $123,676 |
| 5 | $79,222 | $134,369 |
| 6 | $86,784 | $144,476 |
| 7+ | $93,737 | $153,261 |
Keep in mind that these income thresholds may be different for provincial student loans.
Details for Canada GSL applications by province
Not every province or territory participates in the Canada GSL program, but those that do have their own application process.
The following table lists each area of Canada, whether it provides federal or provincial funding, and lists application links:
| Province or Territory | Type of funding available | Application and info link |
|---|---|---|
| Alberta | Separate federal and provincial funding | Alberta Student Aid |
| British Columbia | Integrated federal/provincial funding | StudentAidBC |
| Manitoba | Integrated federal/provincial funding | Manitoba Student Aid |
| New Brunswick | Integrated federal/provincial funding | Student Financial Services |
| Newfoundland and Labrador | Integrated federal/provincial funding | Student Aid |
| Northwest Territories | Only provincial/territory funding available | Student Financial Assistance |
| Nova Scotia | Separate federal and provincial funding | Student Assistance |
| Nunavut | Only provincial/territory funding available | Student Funding |
| Ontario | Integrated federal/provincial funding | Ontario Student Assistance Program |
| Prince Edward Island | Separate federal and provincial funding | Student Loans, Bursaries, Grants and Awards |
| Quebec | Only provincial/territory funding available | Student Financial Assistance |
| Saskatchewan | Integrated federal/provincial funding | Saskatchewan Student Aid |
| Yukon | Only federal funding available | Financial Support for Students |
Since each province is different, you'll need to follow the individual application process for your area in order to submit your request for Canada GSL assistance. Once you've followed the necessary steps, your province or territory will advise you of the next steps in the process.
No matter where you live, both online and paper applications should be available.
Is Canada GSL taxable?
No, Canada GSL is not taxable. Any loan you receive will be repaid and is therefore not considered a taxable benefit. And as long as you use it to at least partially cover your school-related costs, any grants you receive fall under the scholarship exemption category.
You can read more about this exemption here: Taxable scholarships, fellowships, bursaries, and artists' project grants.
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Canada GSL recipients have a 6-month "grace period" once they finish their education but then are required to begin repaying any portion of their funding that was considered a loan. At some point during this 6-month period, you'll get a package outlining your payment terms and options.
This table outlines how residents of each area of Canada should go about repaying their loans:
| Area | Repayment details |
|---|---|
| * British Columbia * Manitoba * New Brunswick * Newfoundland and Labrador * Ontario * Saskatchewan * Yukon | * Make all payments via your My NSLSC account |
| * Alberta * Nova Scotia * Prince Edward Island | * Provincial and federal funding should be repaid separately * Make federal payments via your My NSLSC account * Make provincial/territory payments through your province or territory |
| * Quebec * Nunavut * Northwest Territories | * Make all payments directly to your province or territory |
Canada GSL alternatives
If you aren't eligible for Canada GSL funding, or if you need additional student aid, there are 2 common alternatives to student loans:
Each has its own pros and cons, and your own personal circumstances will determine which option is right for you.
Plus, there are scholarships, bursaries, and grants available for all types of students from all walks of life, offered by many different organizations.
Student line of credit
A line of credit is similar to a credit card in that a certain amount of money is being made available to you, but the interest rates and fees can be quite different. And with a student-specific line of credit, these differences can be even more pronounced.
With a student line of credit, the repayment details are usually more flexible. This means that while you're still actively attending school and studying, you're only responsible for paying back the interest on the amount of credit you've used. Once you graduate, though, you'll need to make payments on the principle as well as the interest.
Most of Canada's major banks offer a student line of credit.
Personal loan
Students who choose to use a personal loan to help pay for their education will receive a lump sum all at once, to use as needed. This means that payments will need to be made on a fixed schedule, beginning right away, which is quite different from how student credit cards or lines of credit work.
The regular payment schedule required for this type of loan can make planning a budget much easier, and therefore it can be a more attractive option for certain people. However, personal loans can also come with relatively high interest rates, and especially if you have a variable-interest loan, this can make repayment more difficult while you're still in school.
Most big banks in Canada provide personal loans, and you can also get them from other financial institutions and lenders that specialize in car loans, mortgages, etc.
FAQ
What is Canada GSL in my bank account?
Canada GSL (government student loan) is a student aid program offered by the federal government. Its purpose is to help students from low to moderate-income homes pay for their post-secondary education and associated living expenses.
What is the maximum GSL deposit in 2024?
The max amount you can receive in 2024 depends on a few factors. Full-time students can get up to $4,200/year, part-timers get up to $2,520, and you're given a bit more for each dependent in your care.
Is Canada GSL a loan or a grant?
Typically, successful applicants will receive both a grant and a loan portion of Canada GSL funding. Whether you receive one, the other, or both types of funding, you won't have to worry about paying taxes on this money.
Do you have to pay back Canada GSL?
You will only have to pay back the loan portion of your Canada GSL deposits, not grant money. However, you'll be given a 6-month grace period after you finish school before you're required to begin repayment.
What is Canada GSL ETU?
The term "Canada GSL" stands for Canada Government Student Loan. Any deposits from this source may show up as "Canada GSL/ETU" on your bank statement, but this is simply a bank code indicating a federal payment.
Why did I get a Canada GSL bank deposit?
If you received a Canada GSL bank deposit, this means you've been given funds to help with your education-related expenses. To manage your loan and make repayments later, simply log into your online account (called NSLSC).
Is Canada GSL different from OSAP?
The main difference between these is that Canada GSL deposits come from the federal government, whereas OSAP payments are separate and come from the Ontario provincial government. Both are to help with educational funding.
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