Free Tuition for Students with Disabilities

Summary#

This bill would have the federal government pay tuition for post-secondary students with disabilities who qualify under a specific tax rule. Payments would go straight to the school, count as a grant, and not be taxed. The government would set detailed conditions later by regulation.

• Tuition for eligible students would be paid directly to designated post-secondary schools (Bill s.9.21(1)).
• The payment would be treated as a non‑repayable grant to the student (Bill s.9.21(2)).
• The grant would not be taxable income (Income Tax Act s.81(1)(h.2)).
• The Minister can only pay when regulatory conditions are met; these details are not yet set (Canada Student Financial Assistance Act s.15(1)(p.1)).
• The bill covers tuition fees only; it does not mention books, housing, or other costs (Bill s.9.21(1)).

What it means for you#

• Households and students

  • If you are a student “in respect of whom an amount is deductible under section 118.3 of the Income Tax Act” (the disability tax credit, or DTC), and you are enrolled in a “designated educational institution” (schools that qualify for federal student aid), the Minister must pay your tuition to your school, subject to future conditions (Bill s.9.21(1)).
  • The money counts as a grant to you and does not have to be repaid (Bill s.9.21(2)).
  • The grant is not taxable, so it will not increase your taxable income (Income Tax Act s.81(1)(h.2)).
  • The bill does not state a start date or whether it applies to full‑time or part‑time studies; regulations will set conditions (Bill s.9.21(1); s.15(1)(p.1)).
  • If you have a disability but do not have DTC status, you would not qualify under this bill as written (Bill s.9.21(1) via Income Tax Act s.118.3).

• Families and caregivers

  • If your dependent qualifies for the DTC and is in a designated post‑secondary program, their tuition would be paid to the school as a grant (Bill s.9.21(1)–(2)).
  • The bill does not explain how this interacts with existing student loans or provincial grants. Data unavailable.

• Educational institutions

  • You would receive tuition payments directly from the Minister for eligible students. You may need to confirm enrollment and tuition amounts under forthcoming regulations (Bill s.9.21(1); s.15(1)(p.1)).
  • The bill sets no per‑student cap in statute; it refers only to “tuition fees” (Bill s.9.21(1)).

• Timing

  • The bill contains no explicit coming‑into‑force clause for the payment section. Implementation depends on regulations that set the conditions for payment (Bill s.9.21(1); s.15(1)(p.1)).

Expenses#

Estimated net cost: Data unavailable.

• No fiscal note or official cost estimate is provided. Data unavailable.
• The bill creates an ongoing federal obligation to pay tuition for eligible students, with no statutory cap per student or in total (Bill s.9.21(1)).
• Payments are deemed grants and are non‑taxable; any revenue effect from tax treatment is not estimated (Bill s.9.21(2); Income Tax Act s.81(1)(h.2)). Data unavailable.
• The bill includes no explicit appropriation; funding levels would need to be set through future budgets or appropriations. Data unavailable.

Proponents' View#

• Removes a key cost barrier by paying tuition for DTC‑eligible students at designated schools, which could increase enrollment and persistence (Bill s.9.21(1); Preamble citing 2022 Canadian Survey on Disability).
• Reduces student debt because the payment is a non‑repayable grant, not a loan (Bill s.9.21(2)).
• Direct-to-institution payment avoids students having to front tuition and may reduce administrative steps for families (Bill s.9.21(1)).
• Makes support tax‑free, so students are not taxed on the assistance they receive (Income Tax Act s.81(1)(h.2)).
• Allows tailored rules by regulation, which can target need and manage integrity without changing the Act (Canada Student Financial Assistance Act s.15(1)(p.1)).

Opponents' View#

• Fiscal risk: the bill requires paying full tuition and sets no cap in law; without a cost estimate, the program’s long‑term budget impact is unknown (Bill s.9.21(1)). Data unavailable.
• Narrow eligibility: limiting access to those with DTC status may exclude many people with disabilities who have not qualified or applied for the DTC (Bill s.9.21(1) via Income Tax Act s.118.3).
• Implementation uncertainty: benefits depend on future regulations that are not yet defined, which could delay start‑up or restrict access (Canada Student Financial Assistance Act s.15(1)(p.1)).
• Partial coverage: paying “tuition fees” only leaves other major costs (fees, books, housing, transport) unaddressed, so overall affordability may still be a barrier (Bill s.9.21(1)).
• Program coordination risks: the bill does not explain how federal tuition grants will interact with existing federal or provincial aid, creating potential duplication or complex rules. Data unavailable.
• Distributional concern: because payments match actual tuition and no cap is stated, students in higher‑tuition programs would receive larger amounts than those in lower‑tuition programs (Bill s.9.21(1)).