Show me the money! University is expensive, but there are many ways to pay for it. From loans and grants to part-time jobs and co-op programs, how to find the money to finish your degree
EDUCATION PAYS LONG-TERM DIVIDENDS: in 2007, the average full-time worker with a high-school education earned $38,000, while workers with a college diploma earned $45,000, and those with a university degree earned $58,000. That's a fair return on investment. But for many students, the question is: how can I pay the upfront costs? Maclean's offers the following primer; all information was current as of February, 2009.
Government Loans
Almost 60 per cent of those who graduated from an undergraduate degree in 2006 had some debt. Their average debt was $24,047, with most of that coming from government loans. Students apply for most provincial and federal assistance using a single application form. Applications are processed and needs assessed by the student's home province or territory.
Government loans are based on demonstrated need, with two main factors taken into account: the cost of studies, and family and personal resources available to applicants. Under the Canada Student Loans Program, students are expected to help pay for their studies. The amount students are expected to contribute is assessed based on such factors as whether they live with their parents, whether they have dependents, as well as the funds they have at their disposal, including employment income, savings and scholarships. Canada Student Loans meets up to 60 per cent of a student's assessed need. The weekly maximum is $210, or $7,140 for an average 34-week course of study. Most provinces top that up. Quebec, the Northwest Territories and Nunavut run autonomous loan systems, but application procedures are comparable. As long as students are enrolled full-time at a post-secondary institution, they do not have to make payments. And while interest begins accruing immediately on completion of studies, there's a six-month grace period before your first payment is due, bringing you closer towards your money saving goals.
The government encourages students to see student loans as a last resort. A good source of information about other types of financial help is the federal government's CanLearn website, www.canlearn.ca. (For more information on student loans, see "How toGet a Loan" page 28.)
Grants
In 2008, the federal government announced a new program: the Canada Student Grant Program (CSGP), set to start in the 2009-2010 academic year. It replaces the bursaries administered by the Canada Millennium Scholarship Foundation. The new CSGP includes an upfront Canada Student Grant of $250 per month for students from low-income families and $100 per month for students from middle-income families. You and your family must be below certain income thresholds, and to receive a grant, students must also qualify for a student loan. This new grant program consolidates the federal Canada Study Grants and Canada Access Grants, which have been around since 1988.
Bankruptcy
Don't even think about doing the borrowing equivalent of dine-and-dash. You cannot declare personal bankruptcy on your student loans until at least 10 years after finishing your studies. And you are ineligible for a Canada Student Loan if in the three years before applying, you have missed payments on three separate debts of $1,000 or more.
Tax Credits
These are one of the most important ways to help defray the cost of education. Benefits include a 17 per cent tax credit on the interest paid on your student loans; a tax credit of $400 per month for fulltime studies; a textbook tax credit of $65 for each month enrolled; and tax-free withdrawals from registered retirement savings plans. You may also be able to deduct from your taxes such things as moving expenses, monthly public transit passes, and ancillary fees such as athletic and health services fees. Students are required to claim most amounts on their own return first--even if mom and dad paid the lees. Unclaimed credits may be transferred to a spouse or parent, or carried forward. New Brunswick, Manitoba, Saskatchewan and Nova Scotia also offer substantial tax rebates for students who remain and work in the province after graduation.
Bank Loans
Most banks offer undergrads a line of credit, which is more flexible than a personal loan. You can withdraw funds as needed, paying monthly interest on the amount borrowed. Depending on the financial institution, undergraduates can borrow up to $15,000 a year, to a maximum of $40,000. As a rule, a co-signer is required and your credit history is reviewed. Students generally must begin paying back the principal eight to 12 months after graduation. Studying for a professional degree such as law, M.B.A. or medicine? You'll likely be able to borrow far more.
Scholarships and Bursaries
Each year, undergrads receive more than $200 million in public and private merit scholarships, ranging in value from $100 to nearly $20,000. Most goes to first-year students. Many universities grant automatic scholarships to students entering with high grade averages (see "Where's My Scholarship?" on page 26); Alberta and B.C. offer such scholarships province-wide. But in other cases, students must apply for the scholarship they seek.
Employment
Planning on working during school? If you earn more than $1,700 a year, that will reduce your allowable amount of student loans. However, students can earn almost twice as much as non-students before their income becomes taxable. One popular way of earning money and gaining experience is co-operative education: students alternate school terms with related work placements. Last year, roughly 55,000 students were enrolled in university co-op programs.
Most campuses have a career centre that posts jobs online. Another way to find an on-campus job is through the student union--most operate restaurants, stores and kiosks that employ students. Service Canada runs a Job Bank (www. jobbank.gc.ca), where students can search by job rifle and location.
Tuition coast to coast
Fees listed below are for undergraduate arts and science
programs for the 2008-2009 academic year
COMPULSORY
UNIVERSITY TUITION ANCILLARY TOTAL
FEES
Sherbrooke (Quebec students) $1,868 $404 $2,272
Laval (Quebec students) 1,868 550 2,418
Montreal (Quebec students) 1,868 673 2,541
Bishop's (Quebec students) 1,868 911 2,779
Memorial 2,550 491 3,041
McGill (Quebec students) 1,868 1,425 3,293
Concordia (Quebec students) 1,868 1,506 3,374
Brandon (Arts) 2,730 707 3,437
Winnipeg (Arts) 2,911 677 3,588
Manitoba 2,972 638 3,610
Brandon (Science) 2,965 707 3,672
Winnipeg (Science) 3,435 677 4,112
UBC (Arts) 4,342 670 5,012
St. Thomas 4,570 462 5,032
Saskatchewan (Arts) 4,416 641 5,057
Regina (Arts) 4,551 552 5,103
Saskatchewan (Science) 4,509 641 5,150
Simon Fraser 4,623 533 5,156
Cape Breton * 4,899 311 5,210
Lethbridge 4,580 633 5,213
Laurentian 4,706 531 5,237
Regina (Science) 4,689 552 5,241
Victoria 4,581 701 5,282
Carleton 4,738 551 5,289
UPEI 4,530 775 5,305
Saint Mary's (Arts) * 4,819 489 5,308
UBC (Science) 4,632 679 5,311
Ottawa 4,751 595 5,346
Brock 4,752 630 5,382
Windsor 4,660 726 5,386
Ryerson 4,775 617 5,392
UNBC $4,362 $1,031 $5,393
Moncton 4,920 484 5,404
Saint Mary's (Science) * 4,919 489 5,408
Trent 4,774 699 5,473
Nipissing 4,510 965 5,475
Lakehead 4,670 825 5,495
Waterloo 4,788 743 5,531
Queen's 4,785 775 5,560
McMaster 4,717 866 5,583
Western 4,724 859 5,583
Calgary 4,958 639 5,597
Wilfrid Laurier 4,774 831 5,605
Alberta 4,901 705 5,606
Mount Saint Vincent (Arts) * 4,789 840 5,629
Guelph 4,774 906 5,680
York 4,774 915 5,689
Toronto 4,776 963 5,739
Sherbrooke (out-of-province students) 5,378 404 5,782
Laval (out-of-province students) 5,378 550 5,928
Mount Saint Vincent (Science) * 5,094 840 5,934
New Brunswick 5,482 476 5,958
Montreal (out-of-province students) 5,378 673 6,051
Dalhousie (Arts) * 5,269 787 6,056
St. Francis Xavier * 5,444 743 6,187
Bishop's (out-of-province students) 5,378 911 6,289
McGill (out-of-province students) 5,378 1,425 6,803
Dalhousie (Science) * 6,079 787 6,866
Concordia (out-of-province students) 5,378 1,506 6,884
Mount Allison 6,720 267 6,987
Acadia * 5,891 1,199 7,090
Several universities are listed twice: Quebec institutions where
out-of-province fees apply, and universities where there are
different fees for arts programs and science programs. Compulsory
ancillary fees can vary according to program, or in the case of
UBC, by campus location: students at the Okanagan campus pay
$591-almost $100 less than students at the main Vancouver campus.
Ancillary fees include student health plan fees. If students are
covered by another insurance plan, they can opt out of most
health plans, which range in cost from $49 to $414.
* Tuition at Nova Scotia universities is reduced for residents of
the province. Out-of-province students must pay $761 more than
the tuition fees listed here.