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Post-Secondary Education Financial Assistance for Persons with Disabilities Act

Full Title:
An Act to amend the Canada Student Financial Assistance Act and the Income Tax Act

Summary#

This bill would have the federal government pay post‑secondary tuition for students with disabilities. It links eligibility to the federal Disability Tax Credit. The money would go straight to recognized schools, be treated as a grant (not a loan), and would not be taxed.

  • Pays tuition for students who qualify for the Disability Tax Credit and are enrolled in a recognized post‑secondary school.
  • Sends the payment directly to the college or university.
  • Treats the payment as a grant, so students do not pay it back.
  • Makes the grant tax‑free.
  • Lets the government set extra rules and conditions through regulations.

What it means for you#

  • Students with disabilities

    • If you qualify for the Disability Tax Credit and enroll in a recognized program, your tuition would be paid by the federal government.
    • You would not pay income tax on this tuition grant.
    • This bill covers tuition only. Other costs like housing, food, books, and transportation are not covered here.
    • Payments go to your school, so you would not need to front tuition money.
  • Families and caregivers

    • Lower out‑of‑pocket costs for a student’s tuition.
    • Less need to take on student loans for tuition.
    • You may need to ensure Disability Tax Credit approval is in place to qualify.
  • Post‑secondary schools

    • You would receive tuition payments directly from the federal government for eligible students.
    • You may need to adjust billing and verification processes to handle these payments.
  • Tax filers

    • The tuition grant would not count as taxable income.

Expenses#

No publicly available information.

Proponents’ View#

  • Removes a major financial barrier and can help more students with disabilities start and finish college or university.
  • Ties help to the existing Disability Tax Credit, which uses an established process to confirm eligibility.
  • Direct payment to schools is simple for students and ensures funds go to tuition.
  • Making it a grant, not a loan, avoids student debt for a group that often faces extra costs.
  • A tax‑free grant keeps more money in students’ pockets.

Opponents’ View#

  • Could be costly for the federal government, with no clear cap or budget in the bill text.
  • Limits eligibility to people approved for the Disability Tax Credit, which may exclude some students with real needs or those facing delays in approval.
  • Covers tuition only, not living or learning costs that also keep students out of school.
  • Leaves important details to future regulations, creating uncertainty about who qualifies and how much is covered.
  • May overlap with existing federal and provincial programs, adding complexity for students and schools.

Timeline

Jun 19, 2025 • House

First reading

Education
Social Welfare