What is Canada GSL Deposit in your Bank Account?

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 2020 to 2021 academic year, eligible students can receive up to $6,000 per year or 750 for each month of study.

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

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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