Education Cost Planner

Canadian Tuition Trends

Canadian tuition has been rising steadily. According to Statistics Canada, the average annual undergraduate tuition for domestic students is approximately $7,000 for university and $3,500 for college. However, costs vary significantly by province and program. Professional programs like engineering, business, and law can cost substantially more. Tuition has historically risen at roughly 3% per year, outpacing general inflation.

RESP and CESG Benefits

A Registered Education Savings Plan (RESP) is the most tax-efficient way to save for education in Canada. Key benefits include:

• Canada Education Savings Grant (CESG): The federal government matches 20% of the first $2,500 you contribute each year, up to $500 per year and a lifetime maximum of $7,200 per beneficiary.
• Additional CESG: Lower-income families may qualify for an additional 10-20% on the first $500 contributed, bringing the match to up to 40%.
• Canada Learning Bond (CLB): Families receiving the Canada Child Benefit may receive up to $2,000 without making any contributions.
• Tax-deferred growth: Investment earnings grow tax-free inside the RESP. When withdrawn for education, the earnings are taxed in the student's hands at their typically low tax rate.
• Lifetime contribution limit: $50,000 per beneficiary (no annual limit, but CESG only applies to $2,500/year).

Canada Student Loans and Provincial Aid

The Canada Student Loans Program provides needs-based financial assistance to post-secondary students. Combined with provincial student aid programs, students may receive a mix of grants (which do not need to be repaid) and loans with favourable terms. Interest on federal student loans has been eliminated as of 2023. Most provinces also offer grants, scholarships, and bursaries.

Scholarships, Bursaries & Co-op Programs

• Entrance scholarships: Many universities automatically consider students with high grades for scholarships ranging from $1,000 to full tuition.
• In-course scholarships: Available for maintaining high academic standing.
• Bursaries: Need-based awards that do not require repayment.
• Co-op and internship programs: Many Canadian universities offer co-operative education where students alternate between study terms and paid work terms. Co-op students can earn $15,000-$25,000+ per work term, significantly offsetting education costs while gaining valuable experience.

Tips to Reduce Education Costs

• Start RESP contributions early to maximize compound growth and CESG grants
• Consider starting at a community college and transferring credits to university
• Apply for every scholarship and bursary available, no matter how small
• Choose a co-op program to earn while you learn
• Living at home during the first year or two can save thousands
• Buy used textbooks or use library reserves and digital resources