Finance Your EducationSeptember 29, 2015

Budgeting for student life—How much will your post-secondary education cost?

Estimating the cost of your post-secondary education

Your costs will generally fall within three major categories:

•tuition fees

•books and other course materials

•living expenses

University Tuition Fees in Ontario

Fees are composed of tuition (academic) fees and compulsory incidental (non-academic) fees.

Basic student tuition fees vary by program and faculty, but it is helpful to have a general idea of the educational costs you can expect in your first year:

$6,040 and up for tuition fees, depending on your program and campus

$1,185 and up for incidental and ancillary fees

College Tuition Fees in Ontario

Average cost of tuition for one academic year in an Ontario college program:

•Diploma Programs - $2,400•Graduate Certificate Programs - $3,600•Bachelor’s Degree Programs - $6,100•Collaborative Programs - $5,000You can also expect an average of $800 in ancillary fees (student activity fees, athletic fees, health insurance, etc.)

Tuition for specialized programs may be higher.

For example, programs that involve training on specialized equipment (such as heavy equipment operator or aviation) require college investment in this equipment, as well as in facilities and ongoing maintenance. These costs are often factored into tuition costs. Other programs, such as photography or fine arts programs, may require you to buy extra equipment or supplies on top of the cost of tuition fees, which can increase your expenses.

College Tuition Fees in Ontario cont.d

Cost of books and supplies for College and University Programs

$1000 and up

Materials Costs

Living Expenses

The biggest factor that will affect your living expenses is whether or not you can continue living at home with your family. If that is a realistic option for you, it can cut your living expenses by thousands of dollars a year.

If you plan on living in residence, check residence and meal plan costs on the website of the university or college that you hope to attend. 

Living Expenses (cont.d)

Some schools’ websites also provide estimated costs for living off-campus. If you plan to live off-campus and will need public transportation, look and see how much a public transit pass will cost. If you have a car, check and see how much you will need to pay for gas and parking. Whatever your living arrangements, there will be some other costs to consider, such as clothing, computers, cell phones and entertainment. Look for ways to save by focusing on your “needs” and cutting down or your “wants,” or non-essential expenses.

$7,985 $7,985

to to

$15,000$15,000

Your costs will likely rise

For example, the average tuition cost 3.3% more for the 2013/2014 school year than the previous year.

The cost of your books and your living expenses are more likely to rise than not, even in the short term.

Whether you’re budgeting for next year or five years from now, remember to include cost increases to have a better idea of how much money you’ll need.

There are a lot of great tools available to prospective students to help create a budget, so you don’t need to start from scratch.

Most banks host student budgeting tools and resources on their websites.

Websites such as the Canadian website studentfinance101.org are hubs of resources, featuring advice, financial calculators and comparison charts.

Once you have put a realistic budget together, the next step is thinking about where the money to cover the expenses will come from.

SAVING IS ALWAYS THE FIRST BEST OPTION

While using savings to fund your education is ideal, 30 per cent of Canadian families don’t set aside funds for their children’s education, according to Statistics Canada.

However, it’s not too late to save up a safety net to avoid relying on expensive borrowing products such as credit cards and lines of credit. 

Summer earnings may not be enough

The poll found that among students working this summer, nearly half (45 per cent) are making $11.00 per hour or less, and 60 per cent are working part-time hours.

As a result, most college and university students (73 per cent) will also need to work during the school year to support their education expenses. This suggests that many students are struggling to cover their school bills with summer employment alone.

WORKING WHILE AT SCHOOL

If you have to work to make ends meet, consider jobs that are worth your while.

Taking on a minimum-wage position may not make sense, especially if your marks suffer from so much time away from studying.

What can make a retail job worthwhile is the staff discount: you might get a decent enough discount that paying for your laptop or monthly groceries becomes that much easier. Jobs that come with tips, such as bartending or waiting on tables, are obvious options.

There are jobs that offer other perks worth considering, though: landing a position as a library monitor, for example, would allow some time to study while at work; teaching fitness or working at a gym would enable you to get in much-needed workouts for free.

• Statistics Canada figures estimate students with both public and private debt end up owing an average of $37,000 by the time they graduate.

Repaying that debt is becoming more of an issue

From the late 1990s to 2013, there has been "a significant increase of young workers in temporary, insecure, or contract work, from eight per cent to almost 12 per cent — a much greater increase than in the [age] 25-plus category.".

According to Statistics Canada’s Youth In Transition Survey, 36% of students who ceased their studies early cited financial reasons.

Scholarships are just for the smartest kids in the class!

BURSARIES•Bursaries are typically awarded on the

basis of financial need to help eligible students cover school expenses.

•Sponsored by various organizations such as post-secondary institutions, hospitals and private companies, bursaries sometimes involve work-terms as form as payments

SCHOLARSHIPSSCHOLARSHIPS

These are awarded for a variety of reasons. These may include academics, community involvement, extracurricular activities, language, and heritage. These usually don’t require that you pay back the funds!

"Application Required"

•means that you must submit an application in order to be considered for the award.

"Application Not Required"

•means that you will be automatically considered for the award when you apply to the university •no application is necessary.

APPLICATION NOT REQUIRED

APPLICATION REQUIRED

"Renewable"

•scholarships are those that can be received for more than one year, if the stated criteria are met each year.

"Non-renewable"

•scholarships are only available for one year. However, schools that offer these scholarships often offer additional upper-year scholarships that are not listed in INFO.

Other Sources of Other Sources of Information Information www.electronicinfo.ca www.ontariocolleges.caUniversity and College Websites

Register at www.scholarshipscanada.com to find even more financial aid opportunities!

ANOTHER HANDY ANOTHER HANDY RESOURCERESOURCE

Richardson’s Homepage!http://

www.richardson.ddsbschools.ca

• Does the company or organization you or your parents work for offer any scholarships?

• Do you or your parents belong to a union or an employee organization that offers scholarships?

• Are you or any members of your family veterans or children of veterans?

• Do you belong to a club or a sports organization that offer scholarships?

Anything that makes Anything that makes youyouDIFFERENT

from other students applying for a from other students applying for a scholarship isscholarship is

IMPORTANT.

Start BRAINSTORMING Now!

Do not forget Do not forget about applying about applying for Scholarships for Scholarships and Bursaries and Bursaries

once you get to once you get to your post-your post-secondary secondary

destination!destination!

STUDENT LOANS - OSAPSTUDENT LOANS - OSAPA student loan is a partnership between you, your post-secondary institution, the provincial and federal governments and the National Student Loan Service Centre.

The government pays the interest on the loan while you are in school.

Six months after you complete your studies, you will begin to repay your student loan.

Full-time students (60%+ of a full course load; 40%+ if you have a permanent disability) are considered for:30% Off Ontario TuitionOntario Access GrantOntario Access Grant for Crown WardsCanada Student Grant for Persons with DependantsCanada Student Grant for Persons from Middle-Income Families Canada Student Grant for Persons from Low-Income FamiliesCanada Student Grant for Persons with Permanent DisabilitiesOntario Distance Grants – Travel or CommutingOntario Living and Learning GrantChild Care BursaryOntario Student Opportunity Grant

OSAP determines the mix of grants and loan.

The Work Study program is offered to provide students with demonstrated financial need with the opportunity to receive priority for certain part-time jobs during their studies.

The Work Study Program is a need-based program, meant to supplement, not replace, government student assistance, student and family contribution and a student line of credit.

Many financial institutions have developed a loan program especially for students, charging a preferential interest rate.

Most institutions also have a credit line, which allows more flexibility, setting a maximum amount of money that you can borrow.

The benefit is that you pay interest only on the funds that you use.

You are only expected to pay the interest on a monthly basis while you remain in school.