What’s the Difference? – Forbes Advisor Canada

Grant or loan for students

The Canada Student Financial Aid Program offers scholarships and loans to full-time postgraduate students in Canada and assesses eligibility for both types of scholarships in a single application.

If you receive a Canada Student Grant (CSG), you must meet certain eligibility requirements, including: financial need, being a full-time student in a qualifying program at a designated school, and having a family income below a certain threshold. If you qualify, you will receive up to $4,200 per year.

For Canada Student Loans (CSL), you’ll be assessed against several criteria to determine how much you’re eligible for at one time. After you graduate, there’s a six-month repayment-free period, and then you’ll need to start repaying the loan. The government permanently eliminated interest on all CSL loans in 2023, which includes loans currently being repaid (although repaymenters are still responsible for paying off interest accrued before April 1, 2023). There are also some programs available for people who don’t have the money to repay their loans, such as the Repayment Assistance Plan (RAP).

When comparing the two options, CSG is better – it’s free money for education. However, the two programs work in conjunction to help fully fund your postgraduate education in Canada.

Provincial programs can also provide financial aid for post-secondary students. For example, the Ontario Student Assistance Program (OSAP) offers both a grant (money you keep) and a loan (money you repay) as part of its financial aid.

Grant or Loan for Green Homes in Canada

The Canada Greener Homes Grant is a grant that has been closed to new applicants since July 2024 for homeowners looking to upgrade their primary residence to be more environmentally friendly. The grant could be up to $5,600, split into two parts. First, you could potentially receive $600 for pre- and post-retrofit assessments conducted by a registered energy advisor. Second, you could receive up to $5,000 for qualifying upgrades. However, you must meet certain criteria to qualify for the grant. What’s more, the grant program is now fully committed and closed to new applicants.

Meanwhile, the Greener Homes program offers homeowners a loan of up to $40,000 to upgrade their homes to make them more energy efficient, interest-free, but the loan must be repaid within 10 years.

Grants vs. Government Loans

The Canadian government offers grants for a variety of purposes, from arts, culture, and sports to work leave, caregiving assistance, and retirement. Each category of these grants must meet certain criteria. The Canadian government also offers loans, the most well-known type being student loans. However, they also offer loan options for small businesses and other purposes.