Chapter 6: Personal Considerations
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Postsecondary education can be expensive and it is important to know about the different options for to help manage and understand costs. There are numerous supports available through Seneca and the governments that provide opportunities for funding and other resources. While some resources depend on your financial situation, some are open to all students and we encourage you to read through and decide which would be helpful for you.
Financial Advising
Seneca’s Financial Aid Office is a good place to start and end when you need financial support. One of the largest barriers to a successful post-secondary career is financial insecurity. Your institution will have several supports put in place to respond to these challenges and aid its students who struggle with financial shortfalls. These resources include: financial advising, helping you apply to scholarships and bursaries, emergency financial loans and referrals to campus food banks and community support.
Please see Seneca’s Financial Support and Helpful Resources page for more information.
Government Student Loan
In Ontario, we have the Ontario Student Assistance Program (OSAP), which provides financial assistance to students who cannot pay for school on their own. OSAP comes in the form of a grant and a loan, which means if you choose to take the loan portion, it must be paid back upon graduation. There is an interest percentage charged to your loan amount and you are given a specified amount of time you must pay back the loan by. OSAP requires an application, including financial information and the program you are planning to attend. It is important to know that OSAP payments are often delayed at the beginning of a term. You may be expected to purchase textbooks and other materials before you have received your OSAP money. Check out the OSAP website which has up-to-date information on applications and payments.
Out-of-province students may also be eligible for federal and/or provincial government financial assistance. U.S. students may be eligible to apply for U.S. Student Loans. Search for government student loans where you are to see what’s available.
Grants and Scholarships
Grants and scholarships are money that is available through Seneca and other external organizations in an effort to help you pay for school. They often include an application, a writing sample, and possibly marks from previous school years. Typically, grants and scholarships do not require that you pay them back (unless you do not meet the requirements). Do not assume that scholarships and grants are only for those with high averages or those who play competitive sports! There are many options out there for all sorts of students and there is often money that goes unawarded due to a lack of applicants.
Find out if your postsecondary institution offers any scholarships or grants and then check out the links below.
Student Line of Credit
Most banks will offer a student line of credit for approved students. A line of credit will let you borrow an amount of money that you can use and pay off during your studies. Like a credit card, the line of credit allows you to borrow – pay off – borrow – pay off, up to your credit limit. A line of credit allows more flexibility than OSAP because you can use/pay off as you need, rather than getting one lump sum of money all at once. Interest rates on student lines of credit are often lower than OSAP or other loans. Some banks may require a co-signer, so be sure to look up all the details before applying.
Check with your bank about the options available to you.
Registered Savings
A Registered Education Savings Plan (RESP) is a government program that allows caregivers to set up a fund for students to use toward their post-secondary education. The idea is that people contribute to this account throughout an individual’s childhood while it accrues interest. There are also some government matching programs depending on how much is contributed in a year. The money that is saved in the account is not taxed until it is withdrawn. Wealthsimple provides a good (unbiased) overview of RESPs here.
It can feel scary to take on so much debt for schooling, and it can be scary to even begin the applications associated with these financing options. But these programs are intended to help you, and there are people who can advise you of your best option. Just remember, the person you speak to about advice should be someone you trust and a reliable source.
