University Students: Who Qualifies For Cerb?

The COVID-19 pandemic has had a significant impact on university students, with many losing their jobs or facing financial difficulties. In response, the Canadian government introduced the Canada Emergency Response Benefit (CERB), providing $2,000 per month to eligible workers who lost their employment due to the pandemic. International students, in particular, faced challenges, with some struggling to access financial support. While CERB was primarily aimed at workers, the Canada Emergency Student Benefit (CESB) was specifically designed to support students, offering $1,250 per month to those unable to access CERB. The eligibility criteria for these benefits vary, and students must meet certain requirements to qualify.

International students' eligibility

International students in Canada were among the groups covered by the Canada Emergency Response Benefit (CERB) scheme, which was introduced to support citizens and taxpayers during the COVID-19 outbreak. The CERB provided temporary income support for those whose livelihoods were affected by the pandemic.

To be eligible for CERB, international students had to meet the following criteria:

• They must have resided in Canada and had a valid Social Insurance Number (SIN). Students without a SIN may still be eligible if they met all other requirements.
• They must have earned an income of at least CA$5,000 in 2019 or the 12 months prior to their application.
• They must have been without employment or self-employment income for at least 14 consecutive days in the initial four-week period.

It is important to note that while international students were eligible for CERB, they were not eligible for the Canada Emergency Student Benefit (CESB). The CESB was available to all students with few requirements, but it provided a lower benefit amount of $1,250 per month compared to CERB's $2,000 per month.

CERB vs. CESB

The COVID-19 pandemic has had a devastating impact on many people who are just starting their careers or are about to graduate. In response, the Canadian government has introduced the Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB) to provide financial support to those affected.

CERB is a benefit of $2,000 per month provided to workers and independent contractors who have lost their employment due to COVID-19. To be eligible for CERB, applicants must meet specific requirements, including having an employment income of at least $5,000 in 2019 or the preceding 12 months and not having voluntarily quit their job. Students who were working on March 15th and earned above the $5,000 threshold may be eligible for CERB. Additionally, international students who lost their jobs due to the pandemic may also qualify for CERB.

On the other hand, CESB is specifically designed for post-secondary students, recent graduates, and those starting post-secondary education who are unable to find work due to COVID-19. It provides a benefit of $1,250 per month, with a higher amount of $1,750 for students with permanent disabilities or dependents. The eligibility criteria for CESB are broader, requiring applicants to be enrolled or planning to enrol in post-secondary education and unable to work or find employment. However, international students do not qualify for CESB.

It is important to note that individuals cannot claim both CERB and CESB simultaneously. When deciding between the two, it is essential to consider the eligibility criteria and the specific needs of the applicant. While CERB offers a higher benefit amount, CESB may be more accessible to students who do not meet the income requirements for CERB.

The Canadian government has set aside a total of $9 billion for the CESB program, recognising the financial challenges faced by students during the pandemic. This support is vital in helping students bridge the gap between their educational pursuits and entering a difficult job market.

CERB eligibility criteria

The eligibility criteria for the Canada Emergency Response Benefit (CERB) required applicants to meet the following criteria:

• Applicants must have earned a minimum of $5,000 in employment income (insurable earnings) in the 12 months prior to their application or in the 2019 calendar year. This includes international students who can prove they earned $5,000 in their home country in 2019.
• Applicants must have stopped working or will stop working for reasons related to COVID-19, or because they are unable to work due to illness, or because they lost their employment for other reasons beyond their control.
• Applicants must have stopped or will stop working for at least 7 consecutive days in the first 2-week period for which they are claiming benefits.
• Applicants must not have received more than $1,000 in combined employment or self-employment income over 4 successive weeks that they were receiving the benefit.

CERB and the Canada Emergency Student Benefit (CESB) are meant to cover different groups, with CERB providing $2,000 per month to workers and independent contractors who have lost employment because of COVID-19. While some students will qualify for the larger benefit, many will not. International students who lost their employment as a result of the pandemic are able to apply for CERB, but others won't be able to access the CESB. Students who were working on March 15 and have earnings over the $5,000 threshold (for 2019 or the last 12 months) have access to CERB benefits.

CERB repayment debt

The Canada Emergency Response Benefit (CERB) was a financial support scheme launched by the Canadian Government to help people affected by COVID-19. It was designed as an income replacement benefit and could be paid out through Employment Insurance (EI), the Canada Pension Plan (CPP), or both.

CERB was first launched in April 2020 and was originally scheduled to provide support for four months. However, it was extended twice, first in June 2020 for two months and then again in August 2020 for an additional month. The benefit provided $2,000 per month to workers and independent contractors who lost employment due to the pandemic.

While CERB was targeted at workers, some students also qualified for the benefit. International students who lost their employment due to the pandemic were eligible for CERB, and many met the eligibility requirements. Additionally, students who were working as of March 15 and had earnings over the $5,000 threshold in 2019 or the previous 12 months could also access CERB benefits.

However, there has been some confusion regarding the eligibility criteria, particularly around the minimum income requirement. This confusion has resulted in some individuals receiving CERB payments even though they did not meet the criteria. As a result, the Canadian Revenue Agency (CRA) has been seeking repayment of CERB benefits from ineligible individuals.

If you received a notice or letter from CRA requesting repayment of CERB, there are a few things you should know. First, the CRA will work with you to arrange flexible repayment options, and they will not charge penalties or interest if the error was made in good faith. It is important to communicate with the CRA and discuss your repayment options.

There are a few ways to repay CERB debt: online, through online banking, or via post. Repayments that are not made in full will be deducted from Canada Employment Insurance Benefits and Canada Pension Plan benefits. Interest and penalties will apply if the repayment amount is not paid within 36 months.

If you are struggling to make your CERB repayments, you may be able to reduce or gain complete debt forgiveness by filing a consumer proposal or bankruptcy through a Licensed Insolvency Trustee. These professionals can help you navigate your options and create a personalized debt consolidation program.

Students' financial support

Students can apply for financial support in several ways, depending on their circumstances and location.

Canada

In response to the coronavirus pandemic, the Canadian government introduced the Canada Emergency Response Benefit (CERB) and the Canada Emergency Student Benefit (CESB). CERB provides $2,000 per month to workers and independent contractors who have lost employment due to COVID-19. While some students will qualify for CERB, many will not. International students, for instance, are not eligible for CESB but may meet the eligibility requirements for CERB. Students who were working on March 15 and have earnings over the $5,000 threshold (for 2019 or the last 12 months) can access CERB benefits.

CESB, on the other hand, is a more universal benefit for students, providing $1,250 a month from May through August for current students, those starting in September, and recent graduates. Students with disabilities or those caring for others can receive $1,750.

United States

In the US, students can apply for financial support through scholarships, grants, and federal aid.

Scholarships

Scholarships are a form of financial aid that does not need to be repaid. They are usually awarded based on merit or financial need. Examples include:

• The Utah Promise Grant: Available to Utah students who demonstrate financial need.
• The Prime Scholarship: Awarded to students who earn the TRANSFORM certificate granted by the Utah State Board of Higher Education.
• The T.H. Bell Education Scholarship: Supports students interested in becoming public educators in Utah.
• The Western Interstate Commission for Higher Education (WICHE) Professional Student Exchange Program: Allows Utah residents to enrol in out-of-state programs at reduced tuition rates.
• The Technical Education Scholarship: Provides financial assistance to students pursuing technical education in high-demand industries.
• The NASA Space Grant Scholarship: Offers funding to students enrolled in aerospace programs.

Grants

Grants are typically need-based financial awards that do not require repayment. Examples include:

• The First Responder Mental Health Services Grant: Provides funding to full-time or retired first responders pursuing a degree or certificate in mental health therapy.
• The Adult Learner Grant: Offers financial assistance to adult learners enrolled in eligible online programs in designated fields.

Federal Aid

Federal student aid is available to eligible students who complete the Free Application for Federal Student Aid (FAFSA). The FAFSA is used to determine a student's eligibility for federal grants, work-study opportunities, and loans. It requires information such as contact details, tax returns, bank account balances, and investment details.

United Kingdom

While I did not find specific information about student financial support in the UK, the country does have a robust system of student loans and grants. Students can apply for maintenance loans to cover living costs and tuition fee loans to cover the cost of university. Additionally, there are grants and bursaries available for students from low-income backgrounds.

Frequently asked questions