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CRA Student Crisis Money: Can You Get $5,000?

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Students and recent graduates in Canada are doubtful whether they can continue their studies, secure employment, pay bills, and save for tuition fees. The group should not worry anymore because the federal government is addressing these fears.

Aside from the Canada Emergency Student Benefit (CESB), there is the Canada Student Service Grant. This $5,000 grant will cover the cost of post-secondary education. The measures are part of Canada’s COVID-19 Response Plan.

Student benefit

The CESB will run from May through August 2020. Each eligible individual will receive $1,250 per month for the duration of the program. For students with dependents and those with permanent disabilities, the CESB is $1,750.

Without the CESB, post-secondary students and recent graduates will suffer financial hardship. The majority is not for the Canada Emergency Response Benefit (CERB) or Employment Insurance (EI).

Student grant

Employment opportunities for students are limited or scarce in an emergency health crisis. What the students or youth can do is to mobilize. The government wants them to take part in national service activities.

Students can acquire valuable labour market and skills development experiences in preparation for the eventual transition to mainstream employment. Ideally, the students should be giving back to their local communities.

Canada launched the new Canada Student Service Grant to serve this purpose. As an encouragement and incentive to participate in the government’s COVID-19 response plan, the program will provide up to $5,000 to support student’s post-secondary education costs in the coming fall.

For the coming academic year, the Canada Student Grant is non-repayable. The government has created other student and youth programs. The ultimate goal is to connect students to meaningful employment and service opportunities. Ten jurisdictions are already participating in the Canada Student Loans Program (CSLP).

Earning opportunity

Like the middle-aged and retirees, millennial generation can also be investors, of course. An exciting option for the tech-savvy is Absolute Software (TSX:ABT). This $515.44 million cyber stock is among the better performing equities amid the 2020 market crash.

Aside from the dividends, this tech stock has the potential to appreciate in the post-pandemic era. As of May 15, 2020, Absolute is trading at $12.13 per share and offering a 2.67% dividend. Year to date, the gain is 41.5%. A $20,000 investment can generate $534 in passive income.

Absolute leads the way in endpoint resilience. It develops and markets cloud-based endpoint visibility and control platform. Clients use the platform for the management and security of applications, computing devices, and data.

For the Q3 fiscal year 2020 (quarter ended March 31, 2020), the company delivered impressive numbers. Revenue grew by 5% to US$26.1 million versus the same period in 2019. The year-to-date EBITDA is US$17.9 million, a 24% improvement from the prior year.

Absolute ended the quarter with US$38.9 million of cash and short-term investments. Debt or outstanding liability is zero. According to CEO Christy Wyatt, Absolute is well positioned to grow its endpoint security ecosystem.

Fully supportive

The government is helping students and recent graduates in a big way through the student benefit and grant. The total cost to support the future success of Canadian students is $1.9 billion.

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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 Christopher Liew has no position in any of the stocks mentioned.

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