Paying for college, university or other post-secondary education can be a major financial commitment.Tuition is only part of the cost. Depending on where you study and your living situation, you may also need to budget for housing, food, transportation, textbooks, technology, student fees and other everyday expenses. Student loans can be one way to help cover these costs, but they aren't the only option.
If you're looking for ways to pay for school without taking on—or while reducing—student debt, there are several options worth exploring. From scholarships and grants to working while you study and saving in advance, the right approach will depend on your financial situation, your program and your education goals.
Here are 8 ways to help fund your post-secondary education in Canada.
1. Apply for scholarships
Scholarships can be one of the most valuable ways to reduce the amount you need to borrow because they generally don't have to be repaid, subject to the terms of the award.
Scholarships can be based on many different factors, including:
- Academic achievement
- Community involvement
- Leadership
- Athletics
- Extracurricular activities
- Financial need
- Field of study
- Cultural or community affiliations
- Career goals
Don't assume you need to be a straight-A student to qualify. There are thousands of scholarships and awards with different eligibility requirements, so spend time researching opportunities that match your background, education and interests.
Start your scholarship search early
Many scholarships have deadlines months before the academic year begins.
Create a simple spreadsheet to keep track of:
- Scholarship name
- Eligibility requirements
- Application deadline
- Required documents
- Essay requirements
- Reference requirements
- Application status
And don't stop after applying for one or two. Applying for multiple scholarships can increase your chances of receiving funding. For more tips, see YNCU's guide to How to Make Your Scholarship Application Stand Out.
2. Look for grants and bursaries
Scholarships aren't the only form of financial assistance that may not need to be repaid. Grants and bursaries can also help students cover education costs, although eligibility and repayment rules vary. Bursaries are often based partly or primarily on financial need, while grants may be available through governments, schools or organizations for specific circumstances, programs or groups.
Check:
- Federal and provincial student aid programs
- Your school's financial-aid office
- Your program or faculty
- Community organizations
- Professional associations
- Charitable organizations
- Employers
Don't assume you won't qualify
Even if you don't think you'll be eligible for financial assistance, it's worth checking. Eligibility can depend on factors such as income, family circumstances, program, course load and other criteria. Government student-aid programs can also include non-repayable grants, so don't automatically assume that applying for student assistance means you'll necessarily take on debt.
3. Use savings and an RESP
If you or your family started saving for education before you reached post-secondary school, those savings can become an important source of funding. One option available to Canadian families is a Registered Education Savings Plan (RESP). RESPs are designed specifically for education savings and can provide access to government incentives for eligible beneficiaries, subject to applicable rules.
If you already have an RESP, review the plan and understand:
- How much has been saved
- Available government incentives
- When withdrawals can be made
- What expenses qualify
- How education assistance payments work
If you're a parent saving for a child's future education, starting early can give your savings more time to potentially grow.
4. Work part-time while you study
Working while attending school isn't right for everyone. A demanding program may make employment difficult, while other students may find that a part-time job provides useful income and valuable work experience.
Even working a limited number of hours can help cover expenses such as:
- Groceries
- Transportation
- Textbooks
- Entertainment
- Phone bills
- Rent
- Other everyday costs
Before taking a job, consider the effect it could have on your studies. The goal isn't necessarily to work as many hours as possible. It's to find a balance that helps you financially without making it harder to succeed academically.
Look for student-friendly employment
Your school may offer jobs specifically for students, including positions on campus. These can sometimes make scheduling easier because your workplace is close to your classes and employers understand the academic calendar.
5. Explore co-op and paid work placements
If your program offers a co-operative education or paid work-placement component, it can provide both income and career experience. Depending on the program, co-op students may alternate between academic terms and paid work terms.
This can help you:
- Earn money toward education expenses
- Build your résumé
- Develop professional skills
- Make industry connections
- Explore potential career paths
Not every program offers co-op, and compensation varies. If you're choosing between programs or schools, it's worth investigating whether co-op or paid placements are available.
6. Ask about employer tuition assistance
If you're already working, don't assume that you're responsible for paying your entire education bill yourself. Some employers offer education assistance, tuition reimbursement or professional-development benefits.
These programs may have conditions, such as:
- The program must relate to your job
- You must remain employed for a certain period
- You must achieve a minimum grade
- There may be an annual reimbursement limit
If you're considering additional education to advance your career, ask your current employer or prospective employers whether education assistance is available. It never hurts to ask.
7. Save before you start school
If post-secondary education is still several years away, saving in advance can reduce the amount you'll need to fund when the time comes. Start by estimating your potential education costs.
Consider:
Tuition + housing + food + transportation + books + technology + fees + personal expenses
Then estimate how much you may need each year. Once you have a target, work backward to determine how much you need to save regularly. For example, saving a smaller amount consistently over several years can be more manageable than trying to find thousands of dollars immediately before school starts.
Automate your savings
Consider setting up automatic transfers to a dedicated education savings account. Even if you can only save a small amount initially, establishing the habit can make it easier to increase your contributions later.
8. Create a student budget before classes begin
One of the easiest ways to underestimate the cost of education is to focus only on tuition. Before starting school, create a realistic budget that includes both education and living expenses.
Education expenses
- Tuition
- Student fees
- Textbooks
- Software
- Laptop or other technology
- Supplies
- Transportation to campus
Living expenses
- Rent or residence
- Groceries
- Utilities
- Phone
- Transportation
- Insurance
- Entertainment
- Personal expenses
Then compare your expected expenses with your available funding. Your funding may include: Savings + scholarships + grants/bursaries + employment income + family contributions + government assistance + other sources.
What is the best way to pay for university without loans?
There isn't one solution that works for every student. The strongest approach may be to combine several sources of funding.
For example:
Scholarship + grant + savings + part-time income + RESP + employer assistance
could significantly reduce the amount a student needs to borrow. The earlier you start planning, the more options you may have.
How to reduce the amount of student debt you need
If avoiding student loans completely isn't realistic, you can still use these strategies to reduce how much you borrow.
1. Apply for non-repayable funding first
Look for scholarships, grants and bursaries before relying on borrowing.
2. Use savings strategically
Determine how much of your savings you can reasonably use toward education while maintaining an appropriate emergency cushion.
3. Work during school if practical
Even modest employment income can help cover everyday expenses.
4. Create a realistic budget
Knowing how much you actually need can prevent unnecessary borrowing.
5. Look for lower-cost alternatives
Depending on your program and goals, compare tuition, living costs, commuting expenses and other costs between schools and programs.
6. Take advantage of education benefits
Check whether your employer, school, professional association or community organization offers financial assistance.
Don't forget about the cost of living
Tuition isn't the only financial consideration when choosing where to study. A program with slightly higher tuition could potentially cost less overall if you can live at home, commute or reduce other living expenses. When comparing schools, calculate the total cost of attending, not just the advertised tuition.
Ask:
How much will this education actually cost me from start to finish?
That number can be much more useful than tuition alone.
Start planning before you need the money
Paying for post-secondary education is easier when you don't wait until the first tuition bill arrives to figure out your options.
Start by:
- Estimating your total education and living costs.
- Researching scholarships, grants and bursaries.
- Checking whether an RESP is available.
- Exploring government student-aid programs.
- Asking about employer education benefits.
- Looking into co-op or part-time employment.
- Building an education savings plan.
- Creating a realistic student budget.
You don't need to fund your education using just one source. A combination of savings, scholarships, grants, employment income and other financial resources can help reduce the amount you need to borrow.
If you're planning for education expenses and aren't sure where to begin, connect with YNCU to discuss your financial goals and options.
This article is for general educational purposes only and does not constitute personalized financial, investment, tax or legal advice. Government programs, eligibility requirements, contribution limits and tax rules can change. Check current program information and consider speaking with a qualified professional about your circumstances.
