Financial Consumer Agency of Canada

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2. > For Consumers
3. > Choose a Life Event
4. > Paying for post-secondary education
5. > Budget for student life
6. > Sources of money to pay for your post-secondary education

Sources of money to pay for your post-secondary education

Most students will have to rely on a variety of sources to cover the cost of their post-secondary education. Some potential sources of money for your studies include:

• Your own savings - money from part-time / summer jobs
• Money from a Registered Education Savings Plan (RESP) where you are the beneficiary
• Grants, bursaries and scholarships
• Government student Loans
• Other personal savings
• Money from personal loans and student lines of credit

Your own savings - money from part-time / summer jobs

• Some students work part-time and/or at summer jobs before and during their post-secondary studies to help offset the costs involved.  Remember that every dollar you save before and during your studies is one less dollar that you'll owe in student debt once you graduate.

Money from a Registered Education Savings Plan (RESP) where you are the beneficiary

• Many families take advantage of the tax benefits and government savings programs associated with RESPs to put money away for their children's education.
  
  
• If your parents (or others) have been saving for your education with an RESP, you can access the funds by requesting Educational Assistance Payments once you've been accepted into a qualified educational program.

Government student Loans

• In Canada, responsibility for government student loans is shared by the federal and provincial governments. Try to minimize the amount you need borrow.
  
  
• The more you owe in student debt, the more difficult it will be to achieve other financial goals once you've graduated, such as saving for a down payment for a home.
  
  
• For more information visit the links below:
  • Understanding Student Loans
  • Eligibility
  • How to Apply
  • Provincial and Territorial Student Financial Assistance Offices
  • National Student Loans Service Centre: On-Line Services
  • Managing your student loan while at school
  • Student Financial Assistance Estimator (SFAE) (find out how much you qualify for)

Grants, bursaries and scholarships

• Grants, bursaries and scholarships can be a great way to offset some of the cost of your post-secondary education. There are hundreds of grants, bursaries and scholarships available in Canada that are awarded based on everything from financial need to academic merit. So take full advantage, do your research and apply for as many as you can.

Other personal savings

• Other personal savings could come from a Tax-Free Savings Account and contributions or gifts from friends and family.

Money from personal loans and student lines of credit

• Most financial institutions also offer personal loans for students as well as student lines of credit.
  
  
• Comparing government student loans to personal loans from financial institutions
  
  
• Generally, government student loans are preferable to personal loans or lines of credit from a financial institution for several reasons:
  
  
  • You will pay interest on a private loan from the day the loan is issued whereas with a government loan, the government pays the interest on the loan while you are in school.
    
    
  • Repayment terms are more flexible with government loans as you won't have to make payments on a government student loan until six months after you graduate.
    
    
  • There are several loan repayment assistance programs for government student loans.

Other Helpful Links

• Registered Education Savings Plans (RESP): save for a child's post-secondary education
• Government grants: save for a child's post-secondary education
• Start saving early for a child's post-secondary education
• Sources of money for your post-secondary education
• Save for your own post-secondary education
• Grants, bursaries and scholarships
• Continuing education: going back to school as an adult
• Tips to save money while you are at school
• Tax deductions and tax credits for students
• Paying down student debt

Related Resources

Date Modified:

2012-12-05