EI Academic Upgrading: Getting Paid to Go Back to School

For most people, the word "Employment Insurance" means "looking for work." But in 2026, as AI and automation reshape the Canadian economy, Service Canada has leaned heavily into a second mission: Retraining. If your current skills are becoming obsolete, the government doesn't just want you to find a new job—they want you to find a better one.

The "Street Angle" for 2026 is that you can actually receive your weekly EI benefits while attending full-time school. Normally, being in school full-time makes you "unavailable for work," which disqualifies you from EI. However, through provincial "Skills Development" referrals and programs like Better Jobs Ontario, you can get a legal waiver. This allows you to treat your education as your "job," keeping your $729/week checks flowing while the government picks up the tab for your tuition.

As part of our EI Master Guide, this article reveals how to get "referred" to training, the 2026 grant limits (up to $28,000), and why Academic Upgrading is the smartest financial move you can make during a layoff.

1. The Permission to Train Rules

Can I go to school while receiving EI in Canada? Yes, but you must follow one of two paths. Path A (Self-Funded): You can take training on your own if you prove you are still searching for work and are ready to drop the course if a job is offered. Path B (Referred): You obtain a "referral" from your province (e.g., Better Jobs Ontario). Once referred, you are deemed unemployed and available, meaning you can stop your job search and focus 100% on your studies while keeping your full EI benefits.

2. 2026 Provincial Training Grants: The "Big Money" List

Each province has a "Skills Development" fund. These aren't loans; they are grants that cover tuition, books, and even childcare.

Better Jobs Ontario (Formerly Second Career)

• Maximum Funding: Up to $28,000.
• Covers: Tuition, books, transportation, and a basic living allowance of up to $410 per week (if your EI runs out).
• 2026 Eligibility: Includes laid-off workers, gig workers, and people from low-income households who have been out of work for 6+ months.

Skills PEI / Training NS / Alberta Supports

• The Strategy: These programs function as "Referral Agencies."
• The Benefit: If they approve your training plan, they send a "Section 25 Referral" to Service Canada. This tells the federal government: "This person is retraining for an in-demand job; do not stop their EI checks."

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School on EI Hacks

This deep dive identifies the technical "Maneuvers" to ensure Service Canada supports your education rather than blocking it.

1. The "In-Demand" Justification Hack

how to get approved for Better Jobs Ontario.

• The Street Angle: You can't just take "any" course. You can't use EI to go to clown school.
• The Hack: You must prove the career is "In-Demand."
• The Strategy: Use the Job Bank's Trend Analysis tool.
• The Move: Print out three job postings in your area for the new career. If the Job Bank gives the career a "3-star" (Good) outlook for 2026-2027, your provincial referral is almost guaranteed.

2. The "Section 25" Referral Shield

Many users search for "Service Canada training course information form."

• The Trap: You tell Service Canada you started school, and they immediately suspend your benefits for being "unavailable."
• The Shield: The Section 25 Referral.
• The Move: Do not start school until you have your provincial referral code. Once that code is entered into your file, the "Job Search" requirement is legally waived. You can attend classes 40 hours a week and your bi-weekly report will simply ask: "Did you attend your referred training?"

3. The Canada Training Credit (CTC) "Double-Up"

A rising search in 2026 is "Canada Training Credit limit 2026."

• The Money: Most Canadians aged 26-65 have a $250/year credit accumulating in their CRA account (up to a $5,000 lifetime limit).
• The Hack: This credit covers 50% of your tuition.
• The Strategy: If your provincial grant doesn't cover the full cost of a specialized certificate, use your CTC on your 2026 tax return to get a refundable credit for the difference.

4. Academic Upgrading: The "Free" Foundation

If you don't have your Grade 12 or need high school math for a college program, search for "free academic upgrading Ontario."

• The Hack: Most provinces offer Literacy and Basic Skills (LBS) for free.
• The Move: You don't even need to use your EI "weeks" for this.
• The Strategy: Many colleges (like Seneca or George Brown) offer "Academic Upgrading" that is 100% government-funded. Doing this before you apply for a major 2-year diploma saves your grant money for the more expensive tuition later.

5. The "Duration" Strategy: 52 Weeks or Less

Most provincial training grants have a 52-week limit.

• The Hack: Focus on "Fast-Track" diplomas or "Micro-credentials."
• The Strategy: In 2026, Service Canada is moving away from funding 4-year degrees. They want to see you back in the workforce within 12 months.
• The Move: Look for "Post-Graduate Certificates" or "Advanced Diplomas" that compress 2 years of learning into 12 months. These are the easiest to get "Referred" for.

4. Summary Table: Training Options While on EI

EI Academic Upgrading 2026

Can I get paid to go back to school while on EI in Canada? Yes. Through the Skills Development or Better Jobs Ontario programs, you can receive a provincial referral that allows you to collect your full EI benefits while attending full-time training. In 2026, these grants can provide up to $28,000 for tuition, books, and living expenses. To qualify, the training must be for an "in-demand" occupation, and you must obtain the referral before your classes begin to ensure your job search requirements are waived by Service Canada.

Frequently Asked Questions (FAQ)

Q: Does going to school extend my EI claim?

A: No. You still only get the number of weeks you originally qualified for (usually 14 to 45). However, if your EI runs out before your course ends, programs like Better Jobs Ontario can provide a "Living Allowance" to cover your bills until graduation.

Q: Can I take an online course?

A: Yes, provided the institution is "Designated" by the province. In 2026, most accredited online diplomas from community colleges are fully eligible for EI referrals.

Q: What is the "Second Career" age limit?

A: There is no upper age limit. As long as you are a "laid-off worker" (including those whose industries have been disrupted), you can apply for retraining whether you are 25 or 55.

Q: Can I use this for a Master's degree?

A: Rarely. These programs are designed for "Vocational Training" that leads directly to a job. A Master's is often viewed as "Academic Research" and is much harder to justify as a "Return to Work" necessity.

About the Author

Jeff Calixte (MC Yow-Z) is a Canadian labour market researcher and digital entrepreneur specializing in government benefit data and cost-of-living support. As the founder of CanadaPaymentDates.ca and BetterPayJobs.ca, Jeff helps newcomers, students, and workers navigate the Canadian social safety net—from tracking CRA payment schedules to finding entry-level work.

Sources

1. Employment Ontario: Better Jobs Ontario - Eligibility and Funding
2. Service Canada: EI and training - How it works
3. CRA: Canada Training Credit (CTC) - Line 45350

Note

Official 2026 payment dates and benefit amounts are determined by the Canada Revenue Agency (CRA) and provincial governments. While we strive to keep this information current, government policies and schedules are subject to change without notice. All data in this guide is verified against official CRA circulars at the time of publication and should be treated as an estimate. We recommend confirming the status of your personal file directly via CRA My Account or by calling the CRA benefit line at 1-800-387-1193.