CRA Update: The New $5,000 Summer Volunteer Grant for Students Is on Hold

Canadian students are preparing for school to reopen but are unsure if they can afford education costs without earning the CSSG. Some millennials, however, are looking to invest in the Real Matters stock for its awesome growth potential.

| More on:

The new Canada Student Service Grant (CSSG) gives post-secondary students and recent graduates summer jobs and income. However, eligible students to the volunteer program might not get the chance. WE Charity, the original CSSG administrator, withdrew from the program on July 3, 2020. Also, the CSSG is on hold.

Troubled student program

Prime Minister Justin Trudeau announced the $912 million CSSG on June 25, 2020. The grant should have been part of the federal government’s $9 billion COVID-19 financial aid for post-secondary students. Depending on the number of hours of volunteer work, the amount ranges from $1,000 to $5,000.

For every 100 hours worked, a student is potentially eligible to receive a $1,000 grant. If a volunteer puts in 500 hours of work, they receive a full award of $5,000. A student can accumulate the hours from June 25 to October 31, 2020, and the registration deadline is supposed to be not later than August 21, 2021.

Sadly, CSSG is now a troubled program because of an alleged conflict of interest between Trudeau and WE Charity. The government is taking over the facilitation through the Ministry of Diversity and Inclusion and Youth. Minister Bardish Chagger said the government is working on a transition plan that would have as few adverse impacts on students.

Some 35,000 applications for volunteer work this summer are pending action. WE Charity is returning federal funds earmarked for the administration of CSSG in full to the government. The program is on pause, not cancelled, but the government has to sort out the things with WE Charity.

The intention is noble, because CSSG can lighten the financial burden of students some more. Nonetheless, the younger generation with cash to spare can invest in stocks for money growth.

Awesome growth potential

Real Matters (TSX:REAL) is an excellent choice for millennials with long-term financial goals. This $2.43 billion company is the leading network management services platform for the mortgage and insurance industries. The bulk of its appraisal and real estate title and closing services are in the U.S.

Real estate purchase transactions are declining, but mortgage refinancing is booming due to the low interest rate environment. In Q3 2020 (quarter ended June 30, 2020), revenue growth was 29.2% versus Q3 2019, while net income grew by 42%. The client base consists of 60 of the top 100 U.S. lenders, where the retention rate is a high 95%.

The tech stock is rewarding investors with fantastic returns in 2020, as it did in 2019. The year-to-date gain is 142%. From $12.32 on December 31, 2019, the price as of August 1, 2020, is $29.80. Had you invested $5,000, your money would have grown to $12,094.16 in seven months. Real Matters’s growth potential is awesome, given the large addressable market.

Cause for worry

There’s no specific timeline as to when the CSSG will recommence. The Canadian Federation of Students said the delay is worrisome. Students are looking forward to receiving grants before the school opening. If the CCSG doesn’t come soon, many students cannot afford to pay tuition fees, other education costs, and living expenses.

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

More on Tech Stocks

3 colorful arrows racing straight up on a black background.
Tech Stocks

This Canadian Stock Could Rule Them All in 2026

Constellation Software’s pullback could be a rare chance to buy a proven Canadian compounder before its next growth leg.

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

The Best Canadian AI Stocks to Buy for 2026

Celestica and CMG are two AI-powered Canadian tech stocks that are poised to deliver market-beating returns to shareholders.

Read more »

AI image of a face with chips
Tech Stocks

Outlook for Kraken Robotics Stock in 2026

The stock is already up 36% in 2026. Could the new $35M deal signal a massive year ahead for Kraken…

Read more »

Young adult concentrates on laptop screen
Tech Stocks

Where Will Constellation Software Stock Be in 5 Years?

Down 35% from all-time highs, Constellation Software is a TSX tech stock that offers significant upside potential to investors.

Read more »

top canadian stocks january 2026
Tech Stocks

Just Released: 5 Top Motley Fool Stocks to Buy in January 2026

Stock Advisor Canada is kicking off 2026 with our newest collection of top stocks to buy this month.

Read more »

hot air balloon in a blue sky
Tech Stocks

1 Soaring Stock I’d Buy Now With No Hesitation

Looking for a soaring stock with real momentum? Shopify’s growth, profitability, and AI expansion make it a compelling buy right…

Read more »

visualization of a digital brain
Tech Stocks

2 Top Canadian AI Stocks to Buy in January

Canadian AI stocks such as Docebo and Kinaxis offer significant upside potential to shareholders in January 2026.

Read more »

Paper Canadian currency of various denominations
Tech Stocks

TFSA: Top Canadian Stocks for Big Tax-Free Capital Gains

The real magic of a TFSA happens when quality growth stocks can grow and multiply.

Read more »