See also the Application package, with tips and tools to help you get into the school you want

The past summer was one of the worst on record for students' summer jobs. Normally, a bad summer means a year of scrimping and saving and generally miserable times for students.

But this year, there's a pleasant surprise: Student aid has been significantly revamped, and hundreds of thousands of undergrads not previously eligible for grants are now able to receive $250 a month from Ottawa without even needing to borrow a cent.

Getting a grant without having to borrow is a huge and positive innovation.

There's a stereotype out there that all low-income kids use student aid and are badly in debt. In fact, one out of two low-income students don't apply for student aid. Many of them survive by keeping their costs low and working long hours. That keeps them out of debt, but until now it also has prevented them from getting grants meant to encourage participation by students exactly like them — hard-working, low-income students.

With the new Canada Student Grants, that may hopefully change, and the grant income may even free them to work a little less and study a little more.

The new grant is based on two things: family income and assessed need.

The income thresholds vary by family size and province but if you come from a family of four and your family income is under $41,000 ($36,000 in the Atlantic provinces), then you are deemed "low-income" and potentially eligible for the $250 per month in grants. Above that, you can still be eligible for a grant of $100/month if your income is below the threshold for being "middle-income".

This part of the program isn't revolutionary — grants based on family income have been around for several years. The rationale behind this program is pretty simple — it is meant to be a way to help young kids from less prosperous backgrounds to meet their financial obligations without going too far into debt.

But there are two notable differences between this new program and previous ones.

The first is that the new program isn't restricted to first-year students; students in any year of study can receive them. Tens of thousands of young students will become newly eligible for awards under the new program.

Second, and more important, is how the new program treats older students. Earlier versions focused on low-income students who were still young enough to be considered dependent on their parents. But this program is now open to all students, including those considered "independent" (technically, a student who is married, has a child, has spent two consecutive years in the labour force or graduated from secondary school more than four years previously — but in practice, anyone over the age of 22).

For these independent students, "family income" means their own personal income. And, since few full-time students make more than the $19,000 - $22,000 threshold for one-person families, virtually all full-time students over the age of 22 are considered "low-income" and potentially eligible for a grant of $250 a month.

Now there is a second screen for eligibility, and that's to make sure a student has "need". For government, "need" just means that a student's costs (tuition, fees, books, and a living allowance based on province of study and whether the students live with their parents) are greater than their resources (a complicated algorithm involving a student's summer work income, their expected in-school income, their assets including any savings plans and parents' income, as well). As long their costs exceed resources by even a single dollar, the student is eligible for the full amount of the monthly grant.

Now, a typical set of student costs for independent students living away from home is about $15,000. As long as an independent student is earning less than that (and most do), he/she will be eligible for the grant. And if they make a bit more than that? No problem: just by reducing their working hours a bit, they can reduce their income and qualify for a grant that would replace their lost income. In total, they can make the same amount of money while doing less work.

This may sound too good to be true, but it's actually the way this program works. If you are a student over 22, there's a very good chance that you are eligible for the maximum grant. If you are under 22, your eligibility will depend on your parents' income. If you come from a single parent household, there's a good chance you will qualify. If you're from a dual income household and you do qualify, getting a grant with no requirement to incur any debt is probably the best offer the federal government has ever made to students; take advantage of it. Alex Usher is president of Higher Education Strategy Associates.