CRA 2025 Education Funding: New Student Loan Limits, Grant Amounts, and Tax Perks Announced

CRA 2025 Education Funding:In 2025, the landscape of post-secondary education funding in Canada has been refreshed with notable updates to grant ceilings, loan limits and tax incentives. As tuition and living costs continue to rise,

the Canada Revenue Agency (CRA) in partnership with provincial and territorial student-aid authorities maintains a pivotal role in enabling eligible students to access higher education with reduced financial burden. These changes, aimed at both full-time and part-time learners, reflect a government commitment to balancing affordability, access and support for students of varying backgrounds. 

CRA 2025 Education Funding-Overview 

Article on	CRA 2025 Education Funding: New Student Loan Limits, Grant Amounts, and Tax Perks Announced
Full-Time Grant Limit	Up to $4,200 per year ($525/month)
Loan Limit	$300 per week of study
Tuition Tax Credit	15% of eligible tuition fees
Grant for Students with Dependants	Up to $2,240 per dependent/year
Loan Interest & Tax Perks	Interest deduction + Canada Training Credit (CTC) available

Grant Updates for 2025

One of the most tangible leaps for students this year is via the non-repayable grants delivered by federal programs administered through CRA. For full-time students demonstrating financial need, the maximum grant has been set at up to CAD $4,200 per year, or CAD $525 per month of study.

For students who have dependents, the grant ceiling is up to CAD $2,240 annually, equating to CAD $280 per month per dependent. Part-time students also benefit, with a cap of around CAD $1,800 annually under certain conditions.

Loan Limits and Repayable Funding Options

While grants provide non-repayable support, many students still require loans to meet their education-related expenses. In 2025 the federal regulations amended for the upcoming 2025–26 academic year indicate that the weekly loan limit for full-time students is set at CAD $300 per week of study.

This adjustment signals an effort to moderate borrowing amounts, ensuring that students are not over-leveraged from the outset of their academic career. Loans remain repayable, but the terms are crafted to be flexible including income-contingent repayment and deferral options for further study or hardship.

Tax Perks for Students and Graduates

Beyond direct funding, the 2025 framework also emphasises the tax-side benefits that students and their families can claim. Several key tax instruments are worth noting:

a) Tuition Tax Credit

Eligible students can claim a non-refundable federal tuition tax credit equal to 15% of eligible tuition fees paid. Unused tuition credits can be carried forward indefinitely, and up to CAD $5,000 of tuition in a year may be transferable to a supporting family member

b) Student Loan Interest Deduction

Interest paid on eligible federal student loans may be claimed as a deduction from taxable income, this does not generate a refund on its own, but it reduces the tax owed.

c) Canada Training Credit (CTC)

Students accumulate the CTC at a rate of CAD $250 per year, up to a lifetime maximum of CAD $5,000. It can be claimed for eligible tuition or fees for job-related training courses.

d) Other Deductions & Savings Vehicles

• If a student relocates at least 40 km closer to a post-secondary institution for full-time study, certain moving expenses may be deductible.
• Contributions to a Registered Education Savings Plan (RESP) are not directly a tax credit for the student, but RESP growth is tax-deferred, and government matching grants support future education costs.

Eligibility Criteria – What You Must Know

Accessing the grants, loans and tax-benefits in 2025 depends on meeting a set of criteria. While each province or territory may have additional rules, the common federal framework is as follows:

• Applicants must be Canadian citizens, permanent residents or designated “protected persons.”
• Enrollment in a designated post-secondary institution (full-time or part-time) is mandatory.
• Students must demonstrate financial need typically based on prior year’s family income and family size. For example, in 2025 thresholds include family size of one at about CAD $37,701, size two at CAD $53,318, size three CAD $65,302, and size four CAD $75,405.
• Academic progress and residency in the province/territory applying are also required.

FAQs for CRA 2025 Education Funding