It is never too soon to think about how you will pay for your postsecondary education.
The average annual cost of a postsecondary education for a university student living at home is $9,300 while the average annual cost of a postsecondary education for a university student living away from home is close to $20,000. Over four years, that is a lot to consider.
What are some of the ways you can pay for your education? Besides family assistance and personal savings, most students use a variety of resources to pay for their education.
Ontario Student Assistance Program (OSAP): In Ontario, you can apply for OSAP to help cover the costs of college and university. OSAP provides student loans and grants to supplement, not replace, your own resources. You must be a Canadian citizen, permanent resident, or protected person to receive OSAP.
You can use OSAP to go to a private or public college or university anywhere in the world as long as it's been approved. The program offers grants (money you don't have to pay back) and loans. There is also additional funding for underrepresented learners such as Indigenous students, First-generation students, students with disabilities, etc. In general, students are expected to contribute towards their educational costs. If the contribution this year 1s $3,600. A financial contribution may be expected from parents depending on their income and family situation.
Co-op programs (paid internship): Co-ops are a large source of financing for those who choose this option. Co-operative education is a program where students work in an industry related to their field. Most co-op programs are structured so that each term or semester of schooling is alternated with a term or semester of work.
You make money while earning your degree which means you will graduate with less debt. To give you an example, co-op students at the University of Waterloo typically make between $9,600 and $22,500 per four-month work term. A co-op program may also lead to a job offer at the end of the term. If your program has a co-op option, you may want to consider this option.
Student line of credit: Many financial institutions such as banks, trust companies, and credit unions offer student lines of credit. The borrower is expected to make monthly interest payments as soon as the money is borrowed. In some cases where students still need financial assistance to cover the costs of education, banks and credit unions may be able to fill the gap
Work-study programs: Most colleges and universities provide work-study programs. These programs offer a wide range of part-time jobs on campus to help students with financial need. Check out what's available at your school.
Scholarships: There are many types of scholarships for all types of students. Having good academic standing and community volunteerism is important for most scholarships and awards. For first-year students, many colleges and universities offer Entrance Scholarships. These scholarships are based on your admission average. They are automatically awarded - no application necessary.
***Also, check with your employer, your parents'/guardians' employers, and unions where you or your parents may be a member.
Types of Funding – Learn these terms:
Bursaries: Bursaries are generally awarded based on financial need, although some applications do consider grades and community volunteerism as well. Both universities and colleges offer bursaries as well as scholarships.
Many students will have to use a variety of strategies to cover their education costs -- a combination of loans, grants, part-time and summer jobs, and scholarships and bursaries to help them pay for their education. There is one last option to consider: If your program is offered at your local university or college, live at home while you're studying. This would be sure to reduce the cost of going to school!
AWARD: An award may be granted in monetary or gift form. It is typically given in recognition of achievement or excellence.
BURSARY: A bursary is FREE MONEY based on individual financial need and may include a minimum expectation of academic achievement or other criteria such as community involvement. Students are generally required to apply for bursaries outlining their need for resources.
SCHOLARSHIP: A scholarship is FREE MONEY based on various criteria such as academic achievement, leadership, community involvement, or other earned merit, or a combination of these elements. Financial need may be a consideration as well. The scholarship usually reflects the values of the donor.
STUDENT GRANT: A Canada Student Grant is FREE MONEY from the government based on financial need
When you qualify for student financial assistance, you are automatically assessed for both Canada Student Loans (see below) and Canada Student Grants.
STUDENT LOAN: A Canada Student Loan is assessed based on financial need. It is money that must be repaid when you finish school. Interest is charged on the loan amount. In Ontario, if you qualify for a student loan, you can opt out of the loan and receive the grant only. Student grants and student loans are delivered through the Ontario Student Assistance Program (OSAP)