What is Canada GSL Deposit? Everything You Need to Know
Like Canada Pro, Canada Fed, and Canada FPT, Canada GSL deposit comes with a lot of surprises to first-time recipients.
The simple reason is that the deposit doesn’t specify the purpose of the payment, making it easy to get confused.
If you’ve just received a bank deposit with the description “Canada GSL” or “Canada GSL ETU” you need to know what it entails before spending the money.
Else, you may put yourself in trouble if you claim the deposit without being entitled to it.
This article covers everything you need to know about the Canada GSL deposit ranging from eligibility, payment amount, application process and more.
What is Canada GSL Deposit?
Canada GSL is a rough abbreviation for “Canada Student Grants and Loans” which are offered under the Canada Student Financial Assistance Program (CSFA Program).
Banks usually used the abbreviation “Canada GSL” when sending grants and loans to eligible low-mid-income families toward funding post-secondary education.
Canada GSL is offered by Employment and Social Development Canada (ESDC) and is administered by the Canada Revenue Agency (CRA).
The deposit consists of both federal and provincial/territorial grants and loans and it’s offered to eligible students including those with dependents and permanent disabilities.
How Does Canada GSL ETU Work?
Canada GSL or Canada GSL ETU serves as a financial assistance that’s funded by the federal and provincial/territorial governments of Canada.
However, the deposit is not administered automatically. You must meet the eligibility and apply through your province/territory.
Note that you can’t apply for the GSL deposit if you live in Nunavut, Quebec, or Northwest Territories. These jurisdictions have their separate student aid available under the attached links.
As you continue reading, you will learn more about the eligibility and application process for the GSL ETU deposit.
Eligibility for Canada GSL Deposit
To qualify for the Canadian Canada GSL deposit, you must meet the following eligibility.
1. Be a Canadian Citizen or Permanent Resident
The deposit is mainly available for Canadian citizens or permanent residents.
International students are generally not eligible for the program, although some exceptions may apply.
2. Live in an Eligible Province/Territory
As noted earlier, not all provinces and territories in Canada offer the GSL deposit.
You must live in either of the following provinces and territories to qualify for the deposit:
- Nova Scotia
- New Brunswick
- Ontario
- Manitoba
- Saskatchewan
- Alberta
- British Columbia
- Yukon Territory
- Newfoundland and Labrador
- Prince Edward Island
3. Enroll in a Designated Post-Secondary Institution
You must be enrolled in a designated post-secondary institution to qualify for the program.
Designated institutions include universities, colleges, and other institutions that offer degree, diploma, or certificate programs.
4. Demonstrate Financial Need
You must demonstrate financial need to qualify for the program. Financial need is determined based on various factors, including your:
- Personal and family income
- Tuition fees and other educational expenses
- Other financial resources
Students with less funds available to cover their education costs are considered to have greater financial needs.
How to Apply For GSL Deposit
Applications for the GSL deposit are made through the provinces or territories that support the program.
This means that you must contact your provincial or territorial student aid service to initiate the application. Your student aid service will be the one to determine your eligibility and entitled financial aid.
Below are the names of the provinces and territories that offer GSL deposits with links to their student aid service websites.
| Province/Territory | Name of Program and Link |
| Nova Scotia | Nova Scotia Student Assistance |
| New Brunswick | New Brunswick Student Financial Services |
| Ontario | Ontario Student Assistance Program (OSAP) |
| Manitoba | Manitoba Student Aid |
| Saskatchewan | Saskatchewan Student Loans |
| Alberta | Alberta Student Aid |
| British Columbia | British Columbia Student Aid |
| Yukon Territory | Yukon Student Financial Assistance |
| Newfoundland and Labrador | Newfoundland and Labrador Student Aid |
| Prince Edward Island | Prince Edward Island Student Financial Services |
Once you have completed the online application form, you will need to submit it along with any required documents.
After submitting your application, it will be reviewed by the National Student Loans Service Centre (NSLSC). If your application is approved, you will receive a notification of your funding and instructions on accessing your loan or grant.
If your application is denied, you will receive a notification explaining the reason for the denial and any steps you can take to appeal the decision.
To start receiving the GSL deposit, your school must confirm your enrollment in the program. You will also be required to confirm the enrollment yourself through your NSLSC account.
That being said, you can also apply for the GSL deposit through Canada Post by filing this form.
However, you must reside in Manitoba, Yukon, Newfoundland and Labrador or New Brunswick to apply through Canada Post.
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How Much GSL Deposit Will You Get?
Five factors are used to determine the amount of GSL deposit you will get. This includes your province/territory of residence, health status, family size, tuition fees and living expenses.
Depending on these factors, you may receive the minimum or maximum GSL deposit per school year.
Below are the 2022/2023 school year maximum annual federal government grants.
| Max. Amount | For |
| $6,000 | Part-time students |
| $3,200 | Part-time students with dependants |
| $6,000 | Full-time students |
| $3,200 | Full-time students with dependants |
| $4,000 | Students with disabilities |
| $20,000 | Students with disabilities (for services and equipment) |
You will be informed about the provincial/territorial deposit you deserve at the application stage.
You’re expected to update the student assistance office of your province/territory about any financial changes you encounter while or before schooling to ensure you receive the right deposit.
That being, you can use the federal student aid estimator to get an estimate of the federal GSL deposit you deserve.
Is the Canada GSL Deposit Taxable?
No. Canada student loans and grants are generally tax-free. This means you do not have to pay taxes on the loans or grants you receive through the program.
However, there are some exceptions to this rule. If you receive a grant specifically designated for tuition, education, or textbooks, it may be considered tax-free if you use it for those purposes.
But if you use the grant for other purposes, it may be considered taxable income.
It is important to consult with a tax professional or refer to the Canada Revenue Agency’s website for more information on the tax treatment of student financial assistance.
They can help you understand your tax obligations and ensure that you comply with the relevant tax laws.
How Long is Canada GSL Administered?
Your health status and study type determine how long you will receive the deposit.
If you’re a full-time student, the maximum lifetime limit is 340 weeks. The maximum lifetime limit is 400 weeks for doctoral students and 520 weeks for students with permanent disabilities.
Interest will start accumulating on the loan part of the deposit once you exceed the maximum lifetime limit that applies to you.
Repayment of Canada GSL
By now, you should be aware that the GSL deposit consists of two components — grants and loans.
The grant component is completely free and you’re not expected to refund it.
However, you are expected to repay the loan component after six months of your graduation or when you stop attending school full-time.
The only exception to loan repayment is when you’re currently a reservist student, serving in the Canadian Forces or you needed medical or parental leave while in school.
The repayment terms of your loan will depend on the type of loan you received and your province or territory.
To avoid repaying the loan with interest, you should pay off the loan within or in less than six months after your graduation.
Note
The federal government has permanently eliminated interest payments on student loans effective April 1, 2023. Loans obtained before April 1, 2023 will incur the regular interest rate.
What if I Can’t Repay the Canada Government Student Loan?
If you cannot repay your Canadian government student loan, it is important to act swiftly to explore your options and avoid default.
Defaulting on your student loan can have serious consequences, including damage to your credit score, legal action, and wage garnishment.
Here are five options to consider if you are having trouble repaying your student loan:
1. Explore Repayment Assistance Programs
The government offers several assistance programs to help you manage your student loan debt. These programs include the Repayment Assistance Plan and Loan Forgiveness for Family Doctors and Nurses.
The Repayment Assistance Plan (RAP) is a federal program available to borrowers who have difficulty making their student loan payments.
RAP provides temporary relief from making your full monthly payments and may also reduce your monthly payment amount.
- To be eligible for RAP, you must demonstrate financial need and be able to show that you are making adequate effort to repay your loan.
Loan Forgiveness for Family Doctors and Nurses is a program that provides loan forgiveness to family doctors and nurses who agree to work in underserved areas of the country.
- To be eligible for this program, you must be a family doctor or nurse registered to practice in Canada and be in good standing with your regulatory body.
2. Negotiate or Seek Repayment Assistance
You can negotiate your loan repayment with the government to suit your current financial capacity.
Also, you can contact your province or territory of residence to seek repayment assistance.
The National Student Loans Service Centre can also help design a suitable repayment plan that fits your current situation.
3. Consider Consolidation or Refinancing
If you have multiple student loans, you can consolidate them into one loan with a single monthly payment.
This makes it easier to manage your debt and lower your interest rate.
Alternatively, you can refinance your student loan to get a lower interest rate or more flexible repayment terms.
4. Get a Part-time Job or Participate in a Work-Study Program
Another way to manage your student loan debt is to consider getting a part-time job or participating in a work-study program.
These opportunities can help you earn additional income to offset your education costs and make it easier to make your student loan payments.
5. Seek Financial Advice and Support
If you are struggling to manage your student loan debt, it may be helpful to seek financial advice and support from a professional.
A financial advisor or credit counsellor can help you understand your options and devise a plan to control your debt.
Additional Student Aids in Canada
In addition to the Canada Student Loans and Grants program, several other financial aid options are available to Canadian students.
As a GSL recipient, chances are you may also be eligible for other student aids out there.
Let’s take a brief look at other student aids available to students like you in Canada:
1. Scholarships
Scholarships are awards of financial aid that do not have to be repaid. They are generally based on merit (e.g., academic achievement, athletic ability) or other specific criteria.
There are many different scholarships available to Canadian students across undergraduate, graduate or postdoctoral levels.
Below is a highlight of some of the current scholarship offers in Canada:
- Canada Graduate Scholarships
- Vanier Canada Graduate Scholarships
- Banting Postdoctoral Fellowships
- International Scholarships Program
- Dick Martin Scholarship Award
- International Development Research Centre
- Indigenous Bursaries Search Tool
- H.L. Holmes Award for Post-Doctoral Studies
- Natural sciences and engineering awards
- Joseph-Armand Bombardier Canada
- Royal Military College Scholarships and Awards
To learn about the eligibility and offers of the above scholarships, click here.
2. Canada Apprentice Loan
Are you currently enrolled in a Red Seal trade apprenticeship or about to do so? You could get up to $4,000 per technical training session.
However, you must enroll in a designated Red Seal trade apprenticeship to qualify for this offer.
Like the GSL deposit, this program is also tax-free. Also, you will only be required to pay interest on the Canada Apprentice Loan when you complete or leave an apprenticeship training program.
That being said, all the provinces and territories of Canada offer the apprentice loan except Quebec which offers different programs.
3. Athlete Assistance Program (AAP)
Are you currently a student/worker and are participating in sports? You may also be eligible for the Athlete Assistance Program (AAP).
AAP is designed to assist students in Canada that are in school or working while participating in sports.
The program mainly seeks to assist Canadians that are preparing or participating in international sports.
To learn about the eligibility and offers of this program, click here.
4. Financial Assistance for Protected Persons
This program is designed to assist those living outside Canada but facing fear of persecution due to their race, religion, nationality, political opinion or membership in a social group.
If you fall under this category, the Immigration and Refugee Board and Citizenship and Immigration Canada will design you as a protected person.
As a protected person, you will be offered access to the loans and grants that are available to Canadian students including GSL.
To learn more about Financial Assistance for Protected Persons, click here.
5. Financial Assistance for Reservists
As noted earlier, you will be exempted from paying interest on the loan component of GSL after six months of graduation if you’re serving as a reservist while schooling full-time.
However, this offer applies to only federal government loans. Your province or territory may require you to repay the loan and interest as a reservist.
As such, it’s essential to confirm with your province/territory to avoid penalties.
To learn more about Financial Assistance for Reservists, click here.
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- BC Income Assistance Payment Dates
- Nova Scotia Income Assistance Payment Dates
Concluding Thoughts
To help reduce the burden of post-secondary education in Canada, the federal and provincial/territorial governments offer grants and loans such as GSL deposits.
Now that you are aware of what GSL deposit entails in your bank account, the essential question to ask yourself is — are you eligible for the deposit?
If you’re not eligible and you received the GSL, the best thing to do is to notify the CRA to avoid putting yourself into trouble.
But if you’re eligible and have applied for the deposit, you can go ahead and spend the funds towards your education.
If you need more clarification or have any questions, check out the following FAQs or leave a comment below.
Canada GSL Deposit: FAQs
Why did I get money from Canada GSL?
Because you’re approved of the Canada Student Grants and Loans program. So your bank will credit you with the description “Canada GSL”.
Is Canada GSL a loan or grant?
It’s both a loan and a grant. The full meaning of the abbreviation is Canada Student Grants and Loans.
Do you have to pay back the Canada grant?
You don’t have to repay the grant part of the Canada Student Grants and Loans program. You will only be required to repay the grant if you received it by mistake.
However, you will have to repay the loan part of the program six months after your graduation.
What happens if you don’t pay back government student loans?
If you don’t pay back the loan part of Canada Student Grants and Loans after six months of your graduation, interest will start accumulating on the loan.
If you miss paying the federal part of the loan for 9 months, the CRA will report you to a collection agency. This will not only affect your credit score but will prevent you from accessing student aid from the government until you pay off the loan.
That being said, each province/territory has penalties for loan default. So if you default on both federal and provincial/territorial student loans, you may face double penalties.
