What is Canada GSL Deposit in Your Bank Account?

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If you just received a deposit in your bank account with the description “Canada GSL” or “CSLP GSL” and wondering what they mean, you’re in the right place.

What is Canada GSL?

Canada GSL stands for Canada Government Student Loan. It is a federal government student aid program that is administered in partnership with provinces and territories.

What of CSLP GSL? CSLP is Canada Students Loan Program so CSLP GSL is an abbreviation used by National Student Loan Services Center.

Is Canada GSL Taxable?

Amounts received as loans or grants under the Canada Student Loan program are generally not taxable in the hands of the recipients.

The loan portion will be repaid so it is not a taxable benefit. Also, the grant would qualify for the scholarship exemption if the amount received is meant to support the student’s enrolment in the post-secondary program.

Who is Eligible for Canada GSL or CSLP?

Eligibility for Canada GSL and the provincial/territorial programs vary across Canada. In general, you must be a Canadian permanent resident or citizen, live in one of the provinces that support Canada Student Loans and be enrolled in a qualifying education program.

There are also requirements about the length of the program and the course load.

In most provinces, the federal government works with the provincial or territorial governments to provide the loans and grant.

New Brunswick, Newfoundland and Labrador, British Columbia and Ontario fall in this category.

For example, Ontario’s program is called Ontario Student Assistance Program (OSAP). So if you receive a Canada GSL deposit in Ontario, it is likely the federal portion of your OSAP funding.

Canada Student Loans and Grants are administered separately with the provincial and territorial student funding programs in Alberta, Nova Scotia, Manitoba, and Prince Edward Island.

Yukon does not have a territorial student assistance program so only the Canada GSL is available.

And finally, Quebec, Nunavut and Northwest Territories have their own student loan measures so the federal Canada Student Loan program is not available.

Do I Have to Repay Canada GSL?

The grant portion of your student assistance program is free, and you won’t have to repay it. However, the loan portion of Canada GSL will have to be repaid.

Fortunately, repayment won’t start until after the completion of your education, but you must confirm your enrolment every year.

In most instances, you have a grace period of 6 months after your study’s end date before you’ll start making repayments on your Canada Student Loan or the Integrated Student Loans.

Interest will not accrue during the grace period for the federal portion, but it may accrue on the provincial loan.

You can get information on your loan and when repayment is expected to start through the NSLSC (National Student Loan Services Center) platform.

How Much Can You Receive?

Canada GSL is based on the needs of each student so varies from one person to the other. The grant also varies depending on a number of factors including the family income.

For the 2022 to 2023 academic year, eligible students can receive up to $6,000 per year or 750 for each month of study. The academic year runs from August 1 to July 31.

You may also be eligible to receive $1,600 under Skills Boost funding if you’ve been out of high school for at least 10 years.

Other payments with unclear descriptions include Canada RIT, Canada Pro, Canada FPT and Canada Fed. Read about them in the links.

Is Canada GSL Taxable?

GSL deposits are tax-free benefits. The government doesn’t require you to report them when filing your taxes. 

While the grant part of the GSL deposit is non-refundable, the loan part must be refunded with interest within a given period. 

Like other types of loans, failure to pay the loan on time can hurt your credit and hinder you or negatively affect your ability to access other loans in the future..

What If I Can’t Repay the GSL?

Life happens, and sometimes we find it challenging to meet our obligations. When this is the case with your GSL repayment, you can ask for repayment assistance or negotiate your monthly payment.

You can also access personalized repayment plans on your National Student Loans Service Centre (NSLSC) account.

Preferably, you can contact the NSLSC or your province/territory for the perfect repayment plan. 

Ensure you follow every means possible to settle your GSL loan in order to avoid a credit score decrease. 

How to Apply for GSL Deposit?

The GSL application process varies by each provincial/territorial program. This is expected since not all provinces/territories offer GSL.

Instead, some offer GSL, while others provide integrated loan and grant programs.

That said, you can apply to your provincial/territorial loan or grant by clicking on the given application link below: 

If you’re a part-time student and can’t complete your application online, you can apply through Canada Post using these documents.

Additional Student Aids in Canada

You may also be eligible for other student aids as a recipient of the Canada GSL deposit. This includes: 

1. Apprentice Loans and Grants

If you’re a student looking for an apprenticeship opportunity in the Red Seal trade, the Apprentice Loans and Grants program may support you with the funds you need from the beginning to the end.

You can receive up to $4,000 interest-free loans and up to $8,000 grants through this program. While you are not required to repay the grant part, you need to repay the loan after completing or resigning from the apprentice program.

Learn more about the Apprentice Loans and Grants program here.

2. Scholarships

You may qualify for undergraduate, graduate or postdoctoral scholarship under several scholarship and grant programs in Canada.

The following are some of the merit-based scholarships you may be eligible for: 

  • Dick Martin Scholarship Award
  • Canada Graduate Scholarships (Masters)
  • Royal Military College Scholarships and Awards
  • Banting Postdoctoral Fellowships
  • Indigenous Bursaries Search Tool
  • Vanier Canada Graduate Scholarships
  • International Scholarships Program
  • International Development Research Centre
  • H.L. Holmes Award for Post-Doctoral Studies
  • Natural sciences and engineering awards
  • Joseph-Armand Bombardier Canada 

Learn more about the various scholarships and their eligibility here

3. Aid for Reservists

If you’re a full-time student and are currently serving in a designated operation, the Aid for Reservists program allows you to pause paying interest on your student loan. 

Also, you’re not required to start paying your student loan under this program even if the operation exceeds six months. 

However, you may have to continue paying your provincial or territorial part of the loan.

Learn more about the Aid for Reservists program here

4. Indigenous Learning

This program covers bursaries, schools, education and scholarships for Aboriginal or Indigenous peoples in Canada.

The Indigenous Learning program supports the elementary, secondary, and post-secondary education of First Nations, Inuit and Métis Nation students. 

Learn more about the various Indigenous Learning programs and their eligibility here

5. Aid for Protected Persons

This program offers loans and grants to people who fear persecution in their native country because of: 

  • Nationality
  • Religion
  • Political opinion
  • Race
  • Membership in a social group 

The Immigration and Refugee Board and Citizenship and Immigration Canada can designate the person as a protected person to qualify for this program. 

If you’re a protected person, you can receive the student grants and loans to enroll in a Canadian designated educational institution.

Learn more about the Aid for Protected Persons here

6. Aid for Athletes

If you’re a Canadian athlete with a good record and are currently preparing to participate in international sport, you may be eligible for this program. 

Through Athlete Assistance Program (AAP), high-performing Canadian athletes can receive financial assistance to excel in international competitions while receiving support for their working or academic careers.

That said, you need to live and train in Canada to qualify for this benefit. However, you can still qualify for the program if you live and train outside the country. This is subject to the approval of Sport Canada and the National Sport Organization (NSO).

Learn more about the Aid for Athletes program here.

FAQs On Canada GSL Deposit

When is Canada GSL/OSAP deposited?

It depends on your provincial/territorial program and the time of application. For OSAP, it can take between 3 to 6 weeks to receive your deposit after application. 

OSAP makes two installment payments: at the beginning of your study (often in September) and midway during your study period  (often in January).

However, you may receive additional OSAP payments at a different period while studying after the government reassessed your application. 

Does OSAP go away after 15 years?

Yes, OSAP goes away after 15 years if a recipient is struggling financially to repay the full loan. This initiative was introduced in 2010 when Ontario joined the federal Repayment Assistance Program (RAP).

Your loan must be in good standing with no default and you must be a Canadian resident to be eligible for the repayment assistance program.

Also, the program is administered in 2 stages: Interest Free Stage and Debt Reduction Stage. You must apply for RAP through NSLSC- the program is not automatic.

Is OSAP forgiven?

Yes, OSAP is forgiven for graduates struggling to repay the full loan after 15 years. Students with disabilities get forgiveness 10 years after struggling to repay the full loan.

Simon is a CPA by day and a Personal Finance Blogger by night. With over a decade experience in financial services, he's passionate about personal finance, investing and helping people take control of their financial life.

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