I'm not one of twitters super reactors, but here are some thoughts on today’s announcement on support for students and new graduates affected by COVID-19 https://pm.gc.ca/en/news/news-releases/2020/04/22/support-students-and-new-grads-affected-covid-19

This covers the two groups that @foley_kelly and I talked about in our Calgary SPP briefing notes: https://www.policyschool.ca/wp-content/uploads/2020/04/econ-trends-Post-Secondary-Financial-Aid.pdf and https://www.policyschool.ca/wp-content/uploads/2020/04/econ-policy-trends-post-secondary-covid.pdf

So what is happening? Well, a lot more than I at least thought was feasible!

A big issue is that many students/recent grads aren’t eligible for CERB - they didn’t lose current work due to COVID. But they had plans to work after graduation or in the summer disrupted, making it hard to make ends meet right now, and also to fund their continuing studies.

@foley_kelly and I suggested a way of managing that for returning students who qualify for Canada Student Loans – remove the expected own contribution of $1500-$3000, provide more funding in grants, and increase loan and grant limits. These are all now announced.

One thing we proposed that isn't announced is using more up to date parental income info to assess need in the loans and grants formula. Currently, a previous year’s tax return is used. That won’t take into account big drops in some parents’ incomes due to COVID.

This matters most for students whose parents were higher earners but have lost a lot of income. But it can still be managed in the application process; that hasn't started up yet, and I'd guess will be further delayed as provinces scramble to update manuals / computer programs.

The increase in CSLP loan&grant limits from $210 to $350/week is the first increase since 2005. It was needed in any case, but without that the other changes would not have meant any more money in pockets of the neediest students.

It matters how provinces react. But as an eg, BC has a cap on (CSL+ BC Student Loans + Canada Student Grants) of $320 per week. If BC lets the total cap go up by the federal increase, then for two regular terms a year, that's an increase in annual amounts from $10,880 to $15,640.

@foley_kelly and I were less sure what could be done for new graduates. They fell through a gap in CERB, and we know students who graduate in recessions face a medium term earnings loss on average compared to those who graduate in normal times. Today’s announcement is massive.

Anyone graduating since December 2019 – along with any students returning to PSE in September – is eligible for the CESB - $1250/month for single students and $1750 for students with dependents. For single students, this is above standard welfare payments in many provinces.

It is remarkable. And a graduate/student can earn up to $1000 and still receive the (full?) benefit.

This is also a bit targeted. Students who work part-time during their studies, and are more likely to be eligible for CERB at $2000/mth, are more likely to be from lower income families than students who work only in the summer months, who will still receive $1250/mth.

There are other measures announced as well, including an expansion of the Canada Summer Jobs program, and some form of ‘contribution to education costs’ for volunteer activites, and extensions of funding for grad students and post-docs.

This is yet another massive policy change, and lots of details remain unclear. Some questions remain. The announcement suggests students starting PSE in September are eligible for CESB – are they eligible for the full May-August? Do they need to be registered or accepted?

How will the provinces react? Nothing here on international students - perhaps we see less demand for bursaries distributed by universities to domestic students, leaving more funds for international students running into trouble?

Also, will any of this matter if universities can't staff courses due to budget cuts? Now isn't the time for massive cuts. And yes, I am looking at you, Manitoba and Alberta.

Lots more, really but no time just now. But wanted to point out that a lot of others have been talking about the gaps for recent grads and students via twitter, including obv @AlexUsherHESA, @JenniferRobson8, @robgillezeau & student orgs like @OUSAhome.