--- title: Upcoming Changes to Financing a Post-Secondary Education description: The system under which a student’s income and assets are assessed in order to determine eligibility for financial assistance will be replaced. image: https://www.koroll.ca/hubfs/Blog_Images/Student.jpg --- [![Koroll & Company - Newmarket CPAs](https://www.koroll.ca/hs-fs/hubfs/images/Logos/koroll_blue.png?width=247&height=65&name=koroll_blue.png "Koroll & Company - Newmarket CPAs")](https://www.koroll.ca/) [![Certified Professional Accountants Newmarket](https://www.koroll.ca/hs-fs/hubfs/images/Logos/CPALogo_2014_notext_72.png?width=82&name=CPALogo_2014_notext_72.png "Certified Professional Accountants Newmarket")](https://www.cpacanada.ca/) ![AdobeStock_77939924_WM.jpeg](https://www.koroll.ca/hs-fs/hubfs/images/Banners/taxesBannerBlueStrip-1.jpg?width=2000&name=taxesBannerBlueStrip-1.jpg "AdobeStock_77939924_WM.jpeg") # Koroll & Company Blog - [Tax Deductions (118)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-deductions) - [Tax Tips (88)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-tips) - [CRA (85)](https://www.koroll.ca/koroll-and-company-blog/topic/cra) - [Corporate (84)](https://www.koroll.ca/koroll-and-company-blog/topic/corporate) - [Small Business (61)](https://www.koroll.ca/koroll-and-company-blog/topic/small-business) - [Pension Plans (30)](https://www.koroll.ca/koroll-and-company-blog/topic/pension-plans) - [RRSP (22)](https://www.koroll.ca/koroll-and-company-blog/topic/rrsp) - [Education (14)](https://www.koroll.ca/koroll-and-company-blog/topic/education) - [TFSA (14)](https://www.koroll.ca/koroll-and-company-blog/topic/tfsa) - [Real Estate (13)](https://www.koroll.ca/koroll-and-company-blog/topic/real-estate) - [COVID-19 Updates (7)](https://www.koroll.ca/koroll-and-company-blog/topic/covid-19-updates) - [E-Commerce (2)](https://www.koroll.ca/koroll-and-company-blog/topic/e-commerce) - [Internet (2)](https://www.koroll.ca/koroll-and-company-blog/topic/internet) - ["Ontario Budget" (1)](https://www.koroll.ca/koroll-and-company-blog/topic/ontario-budget) - [Insider (1)](https://www.koroll.ca/koroll-and-company-blog/topic/insider) [see all](https://www.koroll.ca/koroll-and-company-blog/upcoming-changes-to-financing-a-post-secondary-education#) ## [Upcoming Changes to Financing a Post-Secondary Education](https://www.koroll.ca/koroll-and-company-blog/upcoming-changes-to-financing-a-post-secondary-education) [fa icon="calendar"] Apr 12, 2016 3:00:00 PM / by [Allen Koroll](https://www.koroll.ca/koroll-and-company-blog/author/allen-koroll) - [Tweet](https://twitter.com/share) ![Student Loan and Financing Changes](https://www.koroll.ca/hs-fs/hubfs/Blog_Images/Student.jpg?width=320&name=Student.jpg "Student Loan and Financing Changes")Over the next academic and calendar year, post-secondary students will find that a number of changes are taking place with respect to the rules governing the financing side of post-secondary education. Some of those changes will be welcome, and others will not. First, the bad news. Under current rules, post-secondary students are eligible to claim an education credit and a textbook credit on their annual tax returns. The amounts which may be claimed for each credit are set by law, with higher amounts available to be claimed by full-time students. All such amounts claimable are then converted to tax credits at a rate of 15%. The credits are non-refundable, meaning that they can reduce tax otherwise payable but cannot create or increase a tax refund. Where the student does not have tax payable for the year, the credits can be transferred to a spouse, parent, or grandparent, or can be carried forward to be claimed in a future taxation year. In this year’s federal Budget, it was announced that both the education and textbook tax credits are to be eliminated, effective with the 2017 tax year. Carryforwards will not be lost, however, as students who have earned such credits in previous years (or who earn them in 2016) will be able to continue to carry them forward and make a claim in future years. The good news is that the revenue gained by the federal government in canceling the education and textbook credits is to be used, at least in part, in order to make more welcome changes to other aspects of financing of post-secondary education. First, the current system under which a student’s income and financial assets are assessed in order to determine a student’s eligibility for financial assistance will be replaced. The federal government proposes to introduce a flat-rate student contribution to determine eligibility for Canada Student Loans and Grants, and intends to work with the provinces to finalize the new model in time for implementation with the 2017-18 academic year. As outlined in the Budget Papers, the change is intended to allow students to work and gain labour market experience without having to worry about a reduction in their level of financial assistance. Second, the loan repayment threshold under the Canada Student Loans Program’s Repayment Assistance Plan will be increased to better reflect minimum wages currently in place. Generally the new rules will provide that students will not have to repay their Canada Student Loan until they are earning at least $25,000 per year. More details of the budgetary changes affecting post-secondary students can be found at [www.budget.gc.ca/2016/docs/plan/ch1-en.html#_Toc446106647](http://www.budget.gc.ca/2016/docs/plan/ch1-en.html#_Toc446106647). 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Topics: [Education](https://www.koroll.ca/koroll-and-company-blog/topic/education) ![Allen Koroll](https://www.koroll.ca/hubfs/Koroll_and_Co_Staff_Pictures/Allen_Koroll_CGA_Newmaket_Picture.png) #### Written by [Allen Koroll](https://www.koroll.ca/koroll-and-company-blog/author/allen-koroll) ### Subscribe to Email Updates - Recent - Popular - Categories ### Lists by Topic - [Tax Deductions (118)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-deductions) - [Tax Tips (88)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-tips) - [CRA (85)](https://www.koroll.ca/koroll-and-company-blog/topic/cra) - [Corporate (84)](https://www.koroll.ca/koroll-and-company-blog/topic/corporate) - [Small Business (61)](https://www.koroll.ca/koroll-and-company-blog/topic/small-business) - [Pension Plans (30)](https://www.koroll.ca/koroll-and-company-blog/topic/pension-plans) - [RRSP (22)](https://www.koroll.ca/koroll-and-company-blog/topic/rrsp) - [Education (14)](https://www.koroll.ca/koroll-and-company-blog/topic/education) - [TFSA (14)](https://www.koroll.ca/koroll-and-company-blog/topic/tfsa) - [Real Estate (13)](https://www.koroll.ca/koroll-and-company-blog/topic/real-estate) - [COVID-19 Updates (7)](https://www.koroll.ca/koroll-and-company-blog/topic/covid-19-updates) - [E-Commerce (2)](https://www.koroll.ca/koroll-and-company-blog/topic/e-commerce) - [Internet (2)](https://www.koroll.ca/koroll-and-company-blog/topic/internet) - ["Ontario Budget" (1)](https://www.koroll.ca/koroll-and-company-blog/topic/ontario-budget) - [Insider (1)](https://www.koroll.ca/koroll-and-company-blog/topic/insider) [see all](https://www.koroll.ca/koroll-and-company-blog/upcoming-changes-to-financing-a-post-secondary-education#) ### Posts by Topic - [Tax Deductions (118)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-deductions) - [Tax Tips (88)](https://www.koroll.ca/koroll-and-company-blog/topic/tax-tips) - [CRA (85)](https://www.koroll.ca/koroll-and-company-blog/topic/cra) - [Corporate (84)](https://www.koroll.ca/koroll-and-company-blog/topic/corporate) - [Small Business (61)](https://www.koroll.ca/koroll-and-company-blog/topic/small-business) - [Pension Plans (30)](https://www.koroll.ca/koroll-and-company-blog/topic/pension-plans) - [RRSP (22)](https://www.koroll.ca/koroll-and-company-blog/topic/rrsp) - [Education (14)](https://www.koroll.ca/koroll-and-company-blog/topic/education) - [TFSA (14)](https://www.koroll.ca/koroll-and-company-blog/topic/tfsa) - [Real Estate (13)](https://www.koroll.ca/koroll-and-company-blog/topic/real-estate) - [COVID-19 Updates (7)](https://www.koroll.ca/koroll-and-company-blog/topic/covid-19-updates) - [E-Commerce (2)](https://www.koroll.ca/koroll-and-company-blog/topic/e-commerce) - [Internet (2)](https://www.koroll.ca/koroll-and-company-blog/topic/internet) - ["Ontario Budget" (1)](https://www.koroll.ca/koroll-and-company-blog/topic/ontario-budget) - [Insider (1)](https://www.koroll.ca/koroll-and-company-blog/topic/insider) [see all](https://www.koroll.ca/koroll-and-company-blog/upcoming-changes-to-financing-a-post-secondary-education#) ### Recent Posts ### Navigation [![Book a Corporate Consultation ](https://no-cache.hubspot.com/cta/default/1577306/d01d118a-226f-4228-b26d-7c2ce0d13ccf.png)](https://cta-redirect.hubspot.com/cta/redirect/1577306/d01d118a-226f-4228-b26d-7c2ce0d13ccf) ![](https://www.koroll.ca/hs-fs/hubfs/images/Logos/koroll_white.png?width=247&height=65&name=koroll_white.png "koroll_white.png")   We've proudly served Newmarket and the surrounding region for over 20+ years. 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