STUDENTS: What to Do About the Canada Student Service Grant

Students have been dealt a hard hand during the pandemic, but there are ways to continue bringing in cash even if all benefits come to an end.

| More on:
Top view of mixed race business team sitting at the table at loft office and working. Woman manager brings the document

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn moresdf

Students have been arguably the worst-hit during this pandemic. While they try to gain an education to enter the market place, two huge things happen: not only are classes cancelled, but any potential to make money while school is out also goes out the window.

Students were given multiple benefits however from the government as COVID-19 hit. They were offered the Canada Emergency Student Benefit, delays on loan repayment and interest, and of course the Canada Student Service Grant (CSSG).

In case you’re unaware, unfortunately the grant has since been suspended due to WE Charity backing out of the agreement with Prime Minister Justin Trudeau. The charity was to put $900 million aside for students, but this is no longer the case. Students could have received up to $5,000 in grant money for volunteering in industries that provided essential services during the pandemic.

What now?

The CSSG wasn’t the only benefit available, as I mentioned. Students can still apply for the Canada Emergency Student Benefit, which is in place until August. The benefit pays $1,250 every four weeks to students, and $2,000 every four weeks if you have a dependent or disability. The benefit is paid between May and August, so this is the last month you could apply before school is in session again.

Students should also take another look at whether they can apply for student loans. Before, you would have to state both your expected income and your household income for the year.

Now that’s no longer the case due to the pandemic. So if you could use a loan, now is the time — especially as interest rates have been either reduced or suspended at this time.

Another move students can make is investing during this volatile time in the markets. As Canada reopens, the markets stand to rebound substantially. That means you could see a huge boost during the next few months.

Even if there is another market dip, the markets should be right back where it was before the crash quickly now that countries can handle the pandemic.

One of the best choices right now would be Canadian bank stocks. Canadian banks fared as some of the best in the world during the Great Recession, rebounding in less than a year. The banks have also been around for almost 150 years across the board, making them perfect buy and holds.

If you’re looking for extra cash, then the Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) would be my top choice. The bank offers the highest dividend yield of the Big Six Banks at 6.24% as of writing.

That dividend has increased an average of 6.78% per year during the last decade, with a payout ratio of 63.08%.  You’ll also see your wealth build up thanks to its reduced share price.

Bottom line

The future remains uncertain for all Canadians, but more opportunities are becoming available. It’s unclear whether students will be able to continue receiving funds from the government.

One thing is certain: you can bring in dividend income pretty much indefinitely by investing in companies like CIBC.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned.

More on Bank Stocks

Bank sign on traditional europe building facade
Bank Stocks

The 3 Canadian Bank Stocks Worthy of Your TFSA

TD Bank (TSX:TD) and two other Big Six Canadian bank stocks look like great value options for TFSA investors in…

Read more »

think thought consider
Bank Stocks

RBC Stock: Should You Invest in February 2023?

Royal Bank of Canada has delivered stellar returns to investors in the last 20 years. But is RBC stock a…

Read more »

Bank Stocks

I Keep Buying Shares of This Dividend Stock Hand Over Fist

I have been buying shares of Toronto-Dominion Bank (TSX:TD) hand over fist for years.

Read more »

calculate and analyze stock
Bank Stocks

BNS Stock: A Smart Investment Today?

BNS stock has risen 11% in 2023 so far. But is it worth buying today? Let’s find out.

Read more »

edit Businessman using calculator next to laptop
Bank Stocks

Why RBC Stock Is the Most Valuable Stock on the TSX Today

Any investor can have peace of mind their growing wealth long term by owning Royal Bank of Canada (TSX:RY) shares…

Read more »

sad concerned deep in thought
Bank Stocks

Is goeasy the Best Growth Stock to Buy in February 2023?

goeasy stock has lost 15% in the last 12 months but has returned over 250% in the last five years.…

Read more »

Man holding magnifying glass over a document
Bank Stocks

BMO Stock: Is it a Good Investment Today?

Have you considered BMO for your portfolio? Here’s why this big bank may be a good investment for today, tomorrow,…

Read more »

question marks written reminders tickets
Bank Stocks

TD Stock: Is it a Good Investment Today?

TD stock is up more than 6% in 2023. Are more gains on the way?

Read more »