Paying for tuition

The average cost of post-secondary education in Canada can top $80,000, making financing a reality for most students. If you’re unsure of where to start, use this guide to student loans and learn how to apply for federal, provincial and private loans.
 

Government school loan programs

The federal government has two programs which can help you fund your education. You can apply for school loans from the Canada Student Loan Program (CSLP) or grants from the Canada Student Grants Program (CSGP). Visit www.canlearn.ca to learn more and see how you can apply.

• Canada Student Loan Program: Whether you’re a full- or part-time student, you can apply for a loan through this program. If your application meets the established requirements for financial need, you could be eligible to receive up to 60 percent of the cost of your tuition in federal loans. There is also a maximum amount you can receive, and that is subject to change, so consult the latest literature to review this cap. When you graduate, you will owe the loan amount plus interest back to the government.
• Canada Student Grants Program: This program combines all of the previously available federal grants into one plan. Again, you have to apply for a grant and demonstrate financial need. If your application is accepted, you could be eligible for grant money, which you do not have to repay upon graduation. There are also grants for individuals who fall into certain categories, such as those who are disabled or are supporting children while attending school.
   

Provincial and territorial school loans

When you max out your federal benefits or if you are denied federal financial assistance, you may be able to find support from the province or territory that you reside.

• Alberta: The Alberta Learning Information Service offers scholarships, bursaries and school loans plus financial planning resources.
• British Columbia:StudentAidBC provides loans, scholarships, grants and more. They also have special information for applicants who have dependents, disabilities, use income assistance or have other unique situations.
• Manitoba: You can apply for tuition loans and grants through Manitoba Student Aid. If you’re a medical student, review the special section on medical grants.
• New Brunswick: Apply for full-time or part-time student assistance through New Brunswick’s Student Financial Services. You’ll find all the information and forms you need for provincial aid.
• Newfoundland and Labrador: Learn about your financial assistance options with Newfoundland and Labrador Student Aid. Start your full-time or part-time loan application, or read more about grants and other aid options.
• Northwest Territories: Find student handbooks, policies, procedures and applications for aid from NWT Student Financial Assistance.
• Nova Scotia: Visit the Nova Scotia Student Assistance department to view your student aid options. You can apply for student loans and find approved institutions.
• Ontario: The Ontario Student Assistance Program seeks to provide financial support to its residents through student loans, grants, scholarships and bursaries. You may be eligible for aid whether you are a full-time or part-time student.
• Prince Edward Island: Apply for provincial loans through PEI Student Financial Services. They offer both full- and part-time funding.
• Quebec: Take advantage of loans and bursaries for both full- and part-time students from the Aide financiere aux etudes.
• Saskatchewan: View your student loan options through the Saskatchewan Student Financial Assistance program. Learn more about student assistance with the Student Loan Handbook, and then apply for loans.
• Yukon Territory: See if you’re eligible for aid from Yukon Student Financial Assistance. Learn about grants, loans, scholarships, awards and other funds you can take advantage of to help pay for your education.
   

Private student loans

If you’ve maxed out government aid options, look into school loans and lines of credit from CIBC. For example, with an Education Line of Credit, you can get the money you need to pay for books, housing, tuition, transportation and more.

If you’re a student working toward a professional degree in medicine, accounting, dentistry, law, business, pharmacy or other programs, you can take out larger tuition loans and lines of credit to accommodate the increased costs of these schools. CIBC offers the Professional Edge Student Program, which is a line of credit that comes with repayment options to fit your budget.

You can also use the equity in your home or your parents’ home to get a lower interest rate on a Home Power^® Line of Credit that can be used to fund your education.

You can apply online or get your questions answered by talking to a CIBC advisor at 1-866-525-8622Opens your phone app.

If you’re preparing for a child’s post-secondary education, a graduate program, or about to pursue a professional designation, you’ve probably realized that you may need a loan to cover the associated costs. Higher education can certainly be an expensive undertaking, though it can lead to tangible benefits like higher salaries and better job opportunities.

Applying for a student line of credit

Whether a student is attending college or university as a full- or part-time student, they can apply for a student line of credit to cover the cost of textbooks, courses and other incidentals. There are typically caps on the maximum amount of credit that can be accessed. These vary depending on whether you maintain full- or part-time status.

If a student is attending a professional school, a professional student line of credit is available with higher borrowing amounts, as graduate degrees and professional designations cost substantially more than completing an undergraduate degree.
 

How to use a student line of credit

Apply for a student line of credit, such as the Education Line of Credit, in order to manage the costs associated with post-secondary education. A student line of credit can be used to pay for just about anything, including:

• Tuition
• Textbooks
• Room and board
• Living expenses
• Transportation
• School gear, like computers, bags and supplies
• Activities fees
   

How to repay a student line of credit

A student line of credit can be paid off in a number or ways. You can make payments as frequently as you like without any penalties. If you need a little more time to repay your loan, you also have the option of only paying your monthly interest.

With an interest rate lower than most credit cards and the ability to structure a repayment plan to fit your budget, a student line of credit is a good option for students on a tight budget.
 

How to apply

Not only can a line of credit make higher education more affordable, but it can also help you build your credit rating. As long as the funds are used responsibly and the credit line is repaid promptly, your credit score will be positively affected. To apply for a student line of credit, or to get more information speak with a CIBC advisor at 1-866-525-8622Opens your phone app.

Preparing to send your child to college or university is a big step in both your lives, especially if this is your first foray. While your child is eligible to apply for student loans, grants, scholarships and more, he or she may still need your help with rising tuition costs.
 

Saving for your child’s education now

A good first step to prepare for the cost of post-secondary education is to open a Registered Education Savings Plan (RESP) for your child when he or she is young. You can contribute up to $50,000 maximum; this number is subject to change, so check with your bank. Also, some accounts have minimum deposit requirements while others do not. In addition to helping you save for tuition, having an RESP makes you eligible to receive money from the Government of Canada in the form of grants and bonds, which do not have to be repaid. So, this is a great way to boost your savings. You can open an RESP at any time; of course, the earlier the better. But, it’s never too late to start building savings for this significant but worthwhile expense.
 

Applying for money that doesn’t have to be repaid

Even with a savings plan in place, you may still need to look for additional ways to pay for post-secondary education. In addition to student loans, funding can be found in the form of scholarships, grants and bursaries. These resources provide tuition assistance that does not have to be repaid like a student loan does. Your child can apply for them through the federal government, your provincial or territorial government, and private groups.
 

Scholarships

Available from both the government and the schools your child is considering, scholarships reward academic achievement. You may also find scholarship opportunities from local nonprofit or service organizations.
 

Grants

When you apply for a loan through the Canada Student Loans Program, your application is automatically considered for the Canada Student Grants Program, which may award students grant money based on factors such as financial need, achievement or athletic performance.
 

Bursaries

This type of financial assistance takes both a student’s academic merit and financial need into account when deciding how to award money to cover the cost of tuition.
 

Exploring student loan options

While you may find some assistance from the aforementioned options, the bulk of financial assistance is provided through student loans. In fact, if an application for student loans is approved through the federal Canada Student Loans Program, he or she could receive a loan for up to 60% of the cost of tuition.

After looking into this federal program, you should also explore student loans from your province or territory.

If you’re a resident of New Brunswick, Newfoundland and Labrador, Ontario or Saskatchewan, your child only has to file one application for both federal and provincial student loans as these are administered through Integrated Student Loans. After graduation, he or she will repay this one integrated student loan.

If you live in Nunavut, the Northwest Territories or Quebec, federal Canada Student Loans are not available, so your child will just be applying for provincial or territorial loans.

In the Yukon, there are no territorial loans, so your child will just apply for Canada Student Loans.

For residents of all other provinces, students can file one application for both federal and provincial student loans. However, upon graduation, the student will have to repay each loan separately; they will not be integrated.
 

Taking out loans yourself to help pay for tuition

If you would like to pay for your child’s education rather than rely on tuition loans, you can also do that by taking out a loan or line of credit yourself. Consider applying for a secured or unsecured personal loan, personal line of credit or home equity line of credit from CIBC.

Depending on your credit score and financial situation, this may be a viable option for your family. You can speak with a CIBC advisor at 1-866-525-8622Opens your phone app to learn more about this option.