On Friday morning, the federal government said it would be transferring $275 million to Quebec, the money is intended to reimburse the province for spending on student aid during the 2009 – 2010 school year.
Since 1964, Quebec has run its own student aid program, independent of Canada Student Loans, and received “alternative payments” from the federal government to help fund it.
According to the federal press release, this transfer is a $150 million increase over 2008 – 2009 funding. The increase is due to changes in the federal loans program including new grants, a repayment assistance plan and a 10 per cent increase in the number of loans and grants issues.
While student groups have expressed some concern (in French) about the province’s plans for the money, which doesn’t come with any obligations, the province has said (in French) that it intends to invest all of the money in improving the student grants and loans program.