As of January 1, 2025, thousands of Canadian students can benefit from a new financial aid program designed to provide extra monthly cash. This initiative, announced by Minister of Seniors Joanne Thompson, is aimed at helping part-time students whose parents are either deceased or disabled and who contributed to the Canada Pension Plan (CPP).
Eligibility for the New Monthly Benefit
Part-time students aged 18 to 24 who meet specific criteria will receive a monthly benefit. The amount will be 50% of the benefit paid to full-time students under the CPP children’s benefit program. In 2025, this translates to a monthly flat rate of $150.89 for eligible students.
To qualify, students must maintain a minimum level of school attendance, ensuring that this benefit supports those pursuing their education while managing challenging circumstances, such as the need to care for disabled or deceased parents.
Supporting Students in a Time of Rising Costs
Minister Thompson emphasized the importance of the new benefit in light of the rising costs of living. “No child should have to choose between caring for their parents and going to school,” she stated. “By regularly evaluating the impact of the CPP on Canadians, we are taking the needs of students seriously and providing them with the tools they need to have a secure future.”
How CPP Children’s Benefits Support Education
The Canada Pension Plan (CPP) children’s benefits are designed to provide financial support to the dependent children of disabled or deceased parents. These benefits help alleviate the financial burden on students by covering some educational costs. Prior to this new initiative, these benefits were available to children under 18, but now, part-time students can also access this crucial support.
Impact of the New Benefit on Students
According to Employment and Social Development Canada (ESDC), this new benefit will immediately assist 6,712 eligible students in 2025, providing them with much-needed financial stability. This change is part of broader CPP reforms outlined in the Fall Economic Statement and Budget 2024, following the Triennial Review, where federal, provincial, and territorial finance ministers assess the effectiveness of the pension plan in meeting the needs of Canadians.
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Additional CPP Amendments Effective in 2025
Alongside the new benefit for part-time students, several other amendments to the CPP took effect on January 1, 2025. These include a top-up to the death benefit for certain contributors, expanded eligibility for the Disabled Contributor’s Child’s Benefit once a parent reaches age 65, and the termination of survivor’s pension entitlement following a CPP credit split.
By providing these updates, the Canadian government continues to support its citizens, particularly vulnerable groups such as students, as they navigate the challenges of education and financial well-being.
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