Alberta
Province caps tuition increases and reduces student load interest rate to make post-secondary education more affordable
Making post-secondary education more affordable
Alberta’s government is taking action to improve affordability, address inflation and make tuition more stable and predictable for Alberta’s post-secondary students.
Alberta’s economy has recovered strongly, but students are struggling to keep up with the increased cost of living. Alberta’s government is committed to ensuring post-secondary education remains accessible and affordable for all Albertans. That’s why Advanced Education is providing post-secondary students with new, targeted affordability supports.
As part of Budget 2023, government plans to improve affordability for post-secondary students by:
- Capping domestic tuition increases at two per cent across an institution in 2024-25 and for future academic years.
- Reducing interest rates on student loans to the prime rate, which will help reduce the cost of borrowing for both current and future Alberta student loan borrowers.
- Doubling the student loan interest-free grace period from six months to 12 months to give students more time to find gainful employment without having to worry about student loan payments.
- Increasing the thresholds for the Repayment Assistance Plan to $40,000 from $25,000 so more students can benefit from the program.
In addition, Alberta’s government is providing additional funding to increase the Alberta Student Grant by $225 per month for each eligible student during the 2022-23 loan year.
“High inflation has made life more expensive for all Albertans, including post-secondary students. These new measures will help all students deal with higher costs during these challenging times.”
Alberta’s government recently provided the largest inflation relief package in Canada, with significant broad-based and targeted supports. These actions ensure post-secondary students also receive targeted affordability supports.
“These new affordability measures for students are an important addition to our Affordability Action Plan, and underscore our commitment to students and to keeping Alberta affordable.”
More than 10,000 low-income students receive this funding. The funding boost to the Alberta Student Grant means eligible students willreceive up to a total of $475 per month.
This additional per month funding will be retroactive, meaning students will receive the additional $225 per month effective the beginning of the 2022-23 academic year in the form of a lump sum payment. Students receiving this additional funding from the Alberta Student Grant will be notified by Alberta Student Aid in March. They should also receive the additional funding from student aid during this time.
“This announcement marks the implementation of longstanding requests from student leaders around affordability. On behalf of Alberta’s students, it is great to see increased efforts to ensure that post-secondary is more accessible and affordable for all.”
“Students have been struggling with the rising costs of attending post-secondary. We are happy to see student voices being heard and steps being taken to address affordability.”
Alberta’s government is committed to ensuring post-secondary education is accessible and affordable. These measures will ease the impact of inflation so post-secondary students can focus on their education and worry less about paying the bills. They will also make it easier for student loan borrowers to make their loan payments and effectively transition into the workforce.
Premier Danielle Smith issued the following statement on the April 2, 2025 U.S. tariff announcement:
“Today was an important win for Canada and Alberta, as it appears the United States has decided to uphold the majority of the free trade agreement (CUSMA) between our two nations. It also appears this will continue to be the case until after the Canadian federal election has concluded and the newly elected Canadian government is able to renegotiate CUSMA with the U.S. administration.
“This is precisely what I have been advocating for from the U.S. administration for months.
“It means that the majority of goods sold into the United States from Canada will have no tariffs applied to them, including zero per cent tariffs on energy, minerals, agricultural products, uranium, seafood, potash and host of other Canadian goods.
“There is still work to be done, of course. Unfortunately, tariffs previously announced by the United States on Canadian automobiles, steel and aluminum have not been removed. The efforts of premiers and the federal government should therefore shift towards removing or significantly reducing these remaining tariffs as we go forward and ensuring affected workers across Canada are generously supported until the situation is resolved.
“I again call on all involved in our national advocacy efforts to focus on diplomacy and persuasion while avoiding unnecessary escalation. Clearly, this strategy has been the most effective to this point.
“As it appears the worst of this tariff dispute is behind us (though there is still work to be done), it is my sincere hope that we, as Canadians, can abandon the disastrous policies that have made Canada vulnerable to and overly dependent on the United States, fast-track national resource corridors, get out of the way of provincial resource development and turn our country into an independent economic juggernaut and energy superpower.”
From the Fraser Institute
By any measure, Alberta is an energy powerhouse—within Canada, but also on a global scale. In 2023, it produced 85 per cent of Canada’s oil and three-fifths of the country’s natural gas. Most of Canada’s oil reserves are in Alberta, along with a majority of natural gas reserves. Alberta is the beating heart of the Canadian energy economy. And energy, in turn, accounts for one-quarter of Canada’s international exports.
Consider some key facts about the province’s energy landscape, as noted in the Alberta Energy Regulator’s (AER) 2023 annual report. Oil and natural gas production continued to rise (on a volume basis) in 2023, on the heels of steady increases over the preceding half decade. However, the dollar value of Alberta’s oil and gas production fell in 2023, as the surging prices recorded in 2022 following Russia’s invasion of Ukraine retreated. Capital spending in the province’s energy sector reached $30 billion in 2023, making it the leading driver of private-sector investment. And completion of the Trans Mountain pipeline expansion project has opened new offshore export avenues for Canada’s oil industry and should boost Alberta’s energy production and exports going forward.
In a world striving to address climate change, Alberta’s hydrocarbon-heavy energy sector faces challenges. At some point, the world may start to consume less oil and, later, less natural gas (in absolute terms). But such “peak” consumption hasn’t arrived yet, nor does it appear imminent. While the demand for certain refined petroleum products is trending down in some advanced economies, particularly in Europe, we should take a broader global perspective when assessing energy demand and supply trends.
Looking at the worldwide picture, Goldman Sachs’ 2024 global energy forecast predicts that “oil usage will increase through 2034” thanks to strong demand in emerging markets and growing production of petrochemicals that depend on oil as the principal feedstock. Global demand for natural gas (including LNG) will also continue to increase, particularly since natural gas is the least carbon-intensive fossil fuel and more of it is being traded in the form of liquefied natural gas (LNG).
Against this backdrop, there are reasons to be optimistic about the prospects for Alberta’s energy sector, particularly if the federal government dials back some of the economically destructive energy and climate policies adopted by the last government. According to the AER’s “base case” forecast, overall energy output will expand over the next 10 years. Oilsands output is projected to grow modestly; natural gas production will also rise, in part due to greater demand for Alberta’s upstream gas from LNG operators in British Columbia.
The AER’s forecast also points to a positive trajectory for capital spending across the province’s energy sector. The agency sees annual investment rising from almost $30 billion to $40 billion by 2033. Most of this takes place in the oil and gas industry, but “emerging” energy resources and projects aimed at climate mitigation are expected to represent a bigger slice of energy-related capital spending going forward.
Like many other oil and gas producing jurisdictions, Alberta must navigate the bumpy journey to a lower-carbon future. But the world is set to remain dependent on fossil fuels for decades to come. This suggests the energy sector will continue to underpin not only the Alberta economy but also Canada’s export portfolio for the foreseeable future.
Jock Finlayson
Senior Fellow, Fraser Institute
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