Wednesday's assignment

Financing Post-Secondary Education

Task 1:

You will hear the words below in a talk here about financing post-secondary education. Match the words with their meanings; write down the letter next to the word.

1. _d__ rely on                                                    a. given

2. _e__ eligible                                                    b. not enough

3. _a__ granted                                                  c. accumulated

4. _b__ insufficient                                            d. depend on

5. _f__ contribution                                           e. qualifying

6. _c__ accrued                                                  f. gift

Task 2:

Listen to the talk and answer the questions below.

1. What expenses can the cost of post-secondary education in Canada include?
Tuition, residence fees, books, materials, transportation, food, and various necessities.

2. How are government loans administered?
Government student loans provide money to  eligible students based on demonstrated financial need. Funds are paid out through a combination of the CSL (Canada Student Loan) program and the provincial student loan program (e.g., OSAP—Ontario Student Assistance Program).

3. Who can receive government student loans?
Government student loans and other funds are granted only when other financial resources available to students are deemed insufficient to meet a student’s education expenses.

4. Why are government student loans better than personal bank loans?
Government student loans offer a great advantage over personal bank loans as full-time students can qualify to have their accrued interest paid for by the federal and/or provincial government while they are still studying.

5. What other forms of financial assistance are available to students?
The main difference between them and the government programs lies in how the interest is repayed. In private loans or lines of credit, the student is responsible for all the accrued interest as soon as the loan has been signed.

6. What is an appropriate title for this talk?

Government student loans.

Task 3:

Listen again and complete the text with the missing words.

Par. 1 Studying at a university or college can 1.___involve___ various costs. Depending on the program or school, 2. ___tuition____ can vary from $2,500 to $8,000 or more per year. !e cost of post-secondary education can also include the cost of 3. __accommodation_____________, such as residence fees, as well as the cost of books and other materials, transportation, food and various necessities. Many students in Canada rely on help from the government and financial institutions to finance their education.

Par. 2 Government programs are the form of financial assistance most often 4. ___utilized___to finance university education. Government student loans provide money to 5.__eligible__ students based on demonstrated financial need. Funds are paid out through a combination of the CSL (Canada Student Loan) program and the provincial student loan program (e.g., OSAP—Ontario Student Assistance Program). Students  6.__apply__ in their province of residence.

Par. 3 Government student loans and other funds are granted only when other financial 7. ____resources__ available to students are deemed insufficient to meet a student’s education expenses. These resources include family contributions, part-time work, 8. ___scholarships__, bursaries, etc. If a student is under 19, a parent or a legal guardian or sponsor needs to 9. ____co-sign___ the loan document.

Par. 4 Government student loans offer a great advantage over personal bank loans as full-time students can qualify to have their 10. ___accrued__ interest paid for by the federal and/or provincial government while they are still studying.

Par.5 Private student loans or lines of credit are offered by many banks and credit unions. The main difference between them and the government programs lies in how the interest 11. __is repaied____. In private loans or lines of credit, the student is responsible for all the accrued interest as soon as the loan has been 12. __signed__. In addition, many medium to large corporations and private organizations also offer scholarships, bursaries and awards for students.

Task 4:

Who wouldn’t like to have some free money?  Click on this link and search the eligibility criteria for grants, bursaries, and scholarships, plus the estimated amount as well.  Share this information with your classmates. 

Canada Student Loans

2. Eligibility

To qualify, you must:

• be a Canadian citizen, a permanent resident of Canada or designated as a protected person;
• be a permanent resident of a province or territory that issues Canada Student Loans (Note: The Northwest Territories, Nunavut and Quebec operate their own student loan programs. Contact your provincial or territorial student financial assistance office for more information);
• demonstrate financial need;
• be enrolled in at least 60 percent of a full course load (40 percent for students with permanent disabilities) if you are a full-time student;
• be enrolled in 20-59 percent of a full course load if you are a part-time student (if you are a student with permanent disabilities and you are studying between 40-59 percent of a full course load, you can choose to be considered a student in full or part-time studies);
• be enrolled in a degree, diploma or certificate program offered by a designated post-secondary school that runs for at least 12 weeks within a 15-week period;
• pass a credit check if you are 22 or older and are applying for your first Canada Student Loan; and
• not have exhausted your maximum lifetime limit for financial assistance (including interest-free status).

Need assessment tables can help you figure out whether or not you might be eligible for financial assistance.

Note: To continue receiving student loans and grants each year you are in school, you must maintain satisfactory grades.

Maximum lifetime limit for student financial assistance

• Full-time students who received loans on or after August 1, 1995, are eligible to receive student financial assistance for no more than 340 weeks.

• Full-time students enrolled in doctoral studies are eligible to receive student financial assistance for no more than 400 weeks.

• Students with either a permanent disability or who received Canada Student Loans before August 1, 1995, are eligible to receive student financial assistance for no more than 520 weeks.

There are lifetime limits on the amount of student financial assistance you can receive. This includes both loans and interest-free periods for each loan. Once a lifetime limit has been reached, interest starts to accumulate. You will also have to start paying back the loan six months after you graduate or leave your studies.

Lifetime limits for Canada Student Loans vary:

Canada Education Savings Grant - Eligibility

2. Eligibility

The Canada Education Savings Grant is available until the end of the calendar year in which the child turns 17, as long as:

• the child is a Canadian resident;
• the child has a valid Social Insurance Number;
• an RESP has been opened in their name; and
• a request is made for the grant.

Children who are 16 or 17 years old may be eligible to receive the Canada Education Savings Grant if at least one of the following conditions is met:

• a total minimum of $2,000 was contributed to (and not withdrawn from) the RESP of the child before the end of the calendar year they turned 15; or
• a minimum annual contribution of $100 was made to (and not withdrawn from) the RESP in at least four of the years before the end of the calendar year the child turned 15.

Important: To be eligible for the grant, you must start to save for your child’s RESP before the end of the calendar year in which they turn 15 years of age.

The calendar year is used to determine CESG eligibility, the amount of contributions made and the CESG room earned and used in the year.

3. How much could you receive

On every dollar or the first $500 you save annually in your child's RESP, the Basic CESG will give your child 20 cents:

• up to $100

And, depending on your family income, your child could also qualify for the Additional CESG:

• up to $100, if your net family income is $45,282 or less
• up to $50, if your net family income is between $45,282 and $90,563

The CESG could add up to $400 on the next $2,000 saved when you save more than $500 annually.

The net family income amounts shown are for 2016. These income amounts are updated each year.

Additional Canada Education Savings Grant - Eligibility

2. Eligibility

The Additional Canada Education Savings Grant (A-CESG) is available to children from low-income and middle-income families up to the end of the calendar year they reach the age of 17. There are however, grant eligibility restrictions for kids during the years when they are turning 16 and 17.

This grant is available as long as:

• the child is a Canadian resident;
• the child has a valid Social Insurance Number;
• an RESP has been opened in their name;
• contributions have been made to their RESP; and
• the Additional Canada Education Savings Grant has been requested.

Income levels

The first $500 contributed into a child’s RESP, the Additional Canada Education Savings Grant could add:

• $100, if net family income is $45,282 or less ($500 x 20% = $100)
• $50, if net family income is between $45,282 and $90,563 ($500 x 10% = $50)

Note: Children in care, such as those in foster care, automatically qualify for the yearly $100 amount.

Net family income limits are updated every year. This example is based on 2016 income levels.

To find out your net family income, consult your:

• Canada Child Tax Benefit Notice of Determination;
• Goods and Services Tax Credit/Harmonized Sales Tax Credit Notice of Determination; or
• Notice of Assessment or Reassessment. (If you are married or in a common-law relationship, add the two net incomes for both yourself and your partner found on Line 236 of your assessments.)

This information is also available through the Canada Revenue Agency “My Account” website.

If you are the primary caregiver, you can call the Canada Revenue Agency at 1-800-387-1193. For security reasons, you will be asked questions about your account before they will tell you your net income. Make sure you have your tax or benefit statements on hand during the call.

Primary Caregiver

A primary caregiver is the person who is in charge of a child’s care. That person also receives the Canada Child Tax Benefit. In most cases, the mother is the primary caregiver.

If you opened an RESP and are not the primary caregiver, then you must ask him or her to complete their portion of the application form. If they don’t do this, the child cannot get the Additional grant.

3. How much you could receive

The A-CESG adds an additional 10% or 20% onto the first $500 or less contributed to the RESP annually. These contributions must have been made on or after January 1, 2005. Contributions can be made up until the end of the calendar year in which the child turns 17.

There is a lifetime grant limit of $7,200. This includes both the Basic Canada Education Savings Grant and the Additional Canada Education Savings Grant.

·         Income levels example
A child is born in 2011, and an RESP is opened in the child’s name. The family has a net family income of $32,000. This means the child will be eligible to receive the Basic Canada Education Savings Grant, plus an additional grant of 20%.

Year	Age of child (RESP beneficiary)	Amount of grant room added annually	Annual contributions made to RESP	Contributions that qualify for the Basic CESG	Contributions that qualify for the Additional CESG	Basic CESG paid	Additional CESG paid	Total paid
2011	Newborn	$500	$2,500	$2,500	$500	$500	$100	$600
2012	1 year old	$500	$2,500	$2,500	$500	$500	$100	$600
2013	2 years old	$500	$3,000	$2,500	$500	$500	$100	$600
2011-2013 Subtotal	N/A	$0	$8,000	$7,500	$1,500	$1,500	$300	$1,800

·         Table summary – The total amount put into an RESP is $9,800 ($8,000 in contributions plus $1,800 in grants)

·         Using the previous example, the following calculations can be used to determine the total Canada Education Savings Grant amounts that will be paid out:

• (3 X $2,500 in contributions that qualify for the Basic CESG) x 20% = A payment of $1,500
• (3 X $500 in contributions that qualify for the Additional CESG) x 20% = A payment of $300
• $1,500 (Basic CESG) + $300 (Additional CESG) = Total payment of $1,800

Note: If the primary caregiver's net family income changes, future eligibility for the Additional Canada Education Savings Grant may be affected.

The amount of money that each child can receive in additional grant money depends on the net family income of the child’s primary caregiver.

Other student grants

Grants, bursaries and scholarships help you pay for your post-secondary education by giving you money that does not need to be paid back. They can be offered through governments, schools or private organizations.

In addition to Canada Student Loans, Canada Student Grants, and provincial and territorial grants and bursaries, there are a few other options available to students in Canada.

Apprenticeship grants for on-the-job training

If you have completed your first or second year of an apprenticeship program in a Red Seal trade and you qualify, you could get an Apprenticeship Incentive Grant (AIG). Although you don’t have to pay this grant back, you will have to pay tax on it. Check the AIG deadline to apply.

If you have completed your Red Seal certificate or your provincial or territorial Certificate of Qualification, you may still be able to get a $2,000 Apprenticeship Completion Grant (ACG). Check the ACG deadline to apply.

Additional government student grants

• Athlete Assistance Program
  Canada’s sport funding program enabling athletes to combine their sport and academic or working careers while training for world-class performances
• Explore: Second Language Summer Program
  A five-week intensive language-immersion program.
• University and College Entrance Preparation Program for Aboriginal People
  Provides financial assistance to Status Indians or recognized Inuit for courses to achieve the academic requirements for admission into a post-secondary degree or diploma program.
• Post-Secondary Student Support Program
  Provides financial assistance to Status Indians or recognized Inuit for a range of post-secondary programs.
• Legal Studies for Aboriginal People Program
  A bursary for Métis or Non-Status Indians who wish to attend law school.

Money to study abroad

For more information on scholarships, grants and bursaries for students in Canada who want to study outside of Canada, visit:

• Government of Canada International Scholarships Program
• Canadian Bureau for International Education
• Canadian Information Centre for International Credentials

Scholarships

Scholarships are grants that are given based on merit, not need. They are another great way to pay for schooling.

The following links can help you find and apply for these scholarships offered by governments, schools and private organizations:

• Yconic.ca
  A free scholarship matching service that provides information about scholarships, bursaries, grants, fellowships and other forms of financial assistance to Canadian students. You can search scholarships that reward excellence in areas such as school, sports or volunteerism.
• Canada Graduate Scholarship Program – Master's Scholarships
  Provides funds for students who are in full-time studies at the master’s level in the fields of social sciences and humanities. Provides scholarships for graduate students undertaking research either in health, natural sciences, engineering, social sciences or humanities.
• Government of Canada International Scholarships Program
  Offers scholarships that are open to Canadian students who wish to study abroad.
• DisabilityAwards.ca
  A portal to awards and scholarships for students with disabilities studying at Canada’s colleges and universities.
• International studies scholarship program
  View eligibility requirements and apply for a scholarship if you are full-time undergraduate student pursuing a degree related to international business.
• International Development Research Centre research awards
  Awards for Canadians, permanent residents of Canada, and citizens of developing countries pursuing master's or doctoral studies or having completed a master's or doctoral program.
• International Development Research Centre doctoral research awards
  Awards for Canadians, permanent residents of Canada, and citizens of developing countries pursuing their doctoral studies at a Canadian university.
• Joseph-Armand Bombardier Canada graduate scholarships program - doctoral scholarships
  Apply for a scholarship if you are an eligible doctoral student who has displayed exceptional academic performance throughout your studies in the social sciences or humanities.

Your school's financial aid office can also help you find information on scholarships and bursaries.