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What is the Canada GSL Deposit and Payment in 2023?

If you’re looking to get student aid, you may be wondering what the Canada GSL deposit and payment is. Before spending it, you must understand what it’s for, how it works, and how you should repay it.

This article details the Canada GSL payment, who is eligible, how to apply, and more.

What is the Canada GSL Deposit?

The Canada GSL deposit is the abbreviation for Government Student Loans. The Canadian federal government issues these deposits in grant payments, loans, or both.

It is one of the student aid programs that the Canada Revenue Agency distributes on behalf of the federal government and provincial/territorial governments.

How Does Canada GSL Work?

The Canada GSL program is free to apply for, but there is no guarantee of funding. It all depends on certain factors, such as the program, course load, and needs of each student.

If accepted into the program, students get payments in the first week of September and again in the first week of January before tuition fees are due.

The Canada GSL has both a grant and loan portion given to part-time and full-time students who will be eligible for one loan and one or more types of grants. When applying, the province will determine the student’s eligibility.

Who is Eligible for Canada GSL?

To be eligible for the Canada GSL, students must be:

  • A permanent resident or Canadian citizen
  • Actively enrolled in an accredited program and institution (international schools are sometimes included)
  • Living in a part of the country that supports the Canada GSL program

Beyond those requirements, each province will have different eligibility criteria based on tuition fees, course load, annual income, and more.

Provinces That Offer Student Loans and Grants

British Columbia, New Brunswick, Newfoundland and Labrador, Ontario, Saskatchewan – combined student grants and loans

Alberta, Manitoba, Nova Scotia, Prince Edward Island – provincial/territorial student aid with Canada GSL

Northwest Territories, Nunavut, Quebec – student aid programs without Canada GSL

Yukon – only territorial grants but offers the Canada GSL as well

Income Thresholds for Canadian Student Grant (Full-Time)

Family SizeMaximum Grant Grant Cut-Off
1$32,102$63,615
2$45,399$89,004
3$55,602$106,278
4$64,204$117,021
5$71,782$126,929
6$78,634$136,326
7+$84,933$144,454

How Much Is The Canada GSL Payment?

The Canada GSL payment is based on the needs of each student. The payment varies depending on factors like the student’s province/territory of residence, family income if they have dependents or a disability, tuition fees, and living expenses.

The amount is calculated when you apply for the Canada GSL payment. Before applying, you can use the federal student aid estimator as a rough estimation of how much you’ll get.

Is Canada GSL Taxable?

The Canada GSL deposit is not taxable as it is not considered as part of your income for the tax year.

You will need to start paying back the loan portion six months after graduation. The grant doesn’t need to be paid back, and it isn’t taxable.

Do I Need To Pay Back Canada GSL?

You don’t need to repay the grant, but you will need to repay the loan (with interest, starting six months after graduation).

To find the specific amount to pay back, look at your account statements or contact the student financing program.

There is a forgiveness period for student loans during schooling and a brief period after, which varies by profession.  

If you can’t pay your loan back in time, you can access personalized repayment plans on your National Student Loans Service Centre (NSLSC) account.

How To Apply for Canada GSL Deposit

The Canada GSL deposit is not available in every province or territory, but each has a student grants and loans program. You can apply if your province offers GSL.

Visit the application pages below for each province/territory’s student aid program. You’ll see the requirements and amounts you can get.

After applying, you’ll be notified of the following steps. Keep in mind that you can only apply for one grant and loan.

Canada GSL FAQs

What Does Canada GSL stand for?

Canada GSL stands for Government Student Loans. This abbreviation may show up on bank statements as payment from the government.

Is Canada GSL different from OSAP?

OSAP (Ontario Student Assistance Program) is a financial aid program for the province of Ontario. If you get a Canada GSL payment in Ontario, it will be the federal component of the funding, where OSAP is a separate payment.

What does Canada GSL/ETU mean?

Canada GSL/ETU is the description of the bank deposit of the Canada GSL payment. This is the abbreviation on bank statements for easy tracking.

What is the maximum GSL deposit in 2023?

Until the end of the 2022-2023 school year, the maximum GSL deposit is $6,000 per year or as much as $750 per month of studies.

Conclusion

Now you know how to apply for the Canada GSL deposit and payment. If you are eligible and need student financial aid, it is a great option and is one of the best ways of getting help to pay for your studies.

Even if you don’t need the loan, you can still apply for the grant portion.

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Author

Gravatar for Enoch Omololu, MSc (Econ)
Enoch Omololu, MSc (Econ)

Enoch Omololu is a personal finance expert and a veterinarian. He has a master’s degree in Finance and Investment Management from the University of Aberdeen Business School (Scotland) and has completed several courses and certificates in finance, including the Canadian Securities Course. He also has an MSc. in Agricultural Economics from the University of Manitoba and a Doctor of Veterinary Medicine degree from the University of Ibadan. Enoch is passionate about helping others win with their finances and has been writing about money matters for over a decade. He has been featured or quoted in Forbes, The Globe and Mail, Winnipeg Free Press, Wealthsimple, CBC News, Financial Post, Toronto Star, CTV News, Canadian Securities Exchange, Credit Canada, National Post, and many other personal finance publications. You can learn more about him on the About Page.

His top investment tools include Wealthsimple and Questrade. He earns cash back on purchases using KOHO, monitors his credit score for free using Borrowell, and earns interest on savings through EQ Bank.

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