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A health insurance plan at Loyalist pays
80% of most prescription drug costs for students (contact the Loyalist
College Health Centre for more information).
Students on EI (Employment Insurance) Benefits may be eligible to
continue to receive those benefits while attending Loyalist. Their
benefit period may be extended if the college program lasts longer
than the benefits. Some students may be able to receive additional
assistance for their college tuition from EI. Contact your counsellor
at HRDC to discuss this option as early as possible. Even students
who have been on EI within the past three years may be eligible.
To reduce student costs, used textbooks are available
in the Loyalist College bookstore. Books may be as much as 50% off
the regular price.
Withdrawals from RRSPs (Registered Retirement Savings Plans)
can be made, without a tax penalty, for post-secondary education.
Up to $10,000 can be removed in one calendar year ($20,000 in total)
without penalty from an RRSP as long as the withdrawal is repaid
within a 10-year period.
Day care
is available on-site in a licensed program operated in
support of the Early Childhood Education program. The children of
students are given priority, but early application is recommended.
Fee subsidies may be available to eligible families through OSAP
or other government programs.
Tax Benefits
College students (and their parents) are eligible for significant
tax benefits (this includes a $400 per month deduction as well as
tuition and fee credits). This total will provide a significant
tax credit for either the student or, by transfer, to a spouse,
parent or even a grandparent.
Part-time students (taking as few as 12 hours per month of post-secondary
education for a minimum of three weeks) are now eligible for a tax
credit for each month spent studying, in addition to their tuition
costs.
Interest on a student loan is now deductible for tax purposes.
Individuals will be allowed to claim a 17% federal tax credit on
the interest portion of payments for federal and provincial student
loans. This can save a significant amount on taxes.
Most banks offer a variety of student loan packages to assist students,
either instead of, or in addition to government student loan programs.
Typical would be "Brain Money" from the Bank of Montreal.
This program provides a line of credit that can be used as needed
as opposed to a large, upfront loan.
Although many students do not file an income tax return because
their income is below the taxable threshold level, they should be
filing. Even if no tax is owing, students 19 years of age and older
can claim the refundable GST credit, worth at least
$200 per year. These cheques arrive four times per year directly
to the student. The income of most young college students will allow
them to receive the tax benefits. Most students will also be eligible
for the $100 Ontario sales tax credit.
Students can claim a deduction for moving expenses if they
relocate more than 40 kilometres to attend school. This
deduction can be claimed against any scholarship income as well
as any employment income. In the summer when the student moves home,
she or he is "moving to take a job," thus all moving expenses
are deductable. These expenses can include travel, gas, food, lodgings,
shipping, car rental, mailing among other costs for up to two weeks
around the time of moving. Remember to save all receipts. Contact
the Canada Customs and Revenue Agency to obtain the booklet and
form to use, or visit their web site at: www.ccra-adrc.gc.ca
Don't forget that the first $3000 of any scholarship or bursary
is tax-free.
The Canada Customs and Revenue Agency allows students to carry
forward unused tuition and education fee deductions to a future
year. Alternatively, unused tuition fees and education amounts of
up to $5,000 may be transferred to a supporting spouse, parent,
or grandparent.
For very low income students who attend college part-time or who
enroll in the College Access Program, the Ontario Special Bursary
Plan can provide non-repayable sums of money to cover tuition fees,
books, transportation and childcare.
The Canada Education Savings Grant provides a
grant of up to $400 per year toward a Registered Educational Savings
Plan (RESP) of a child up to age 18 based on a parent or student
contribution of up to $2,000 per year. Talk to a financial planner
to find out more about this great new option.
In Summary
We urge you to consider your educational options and how the various
support programs might be able to assist you in making a college
diploma a reality for you. College may not be the right choice for
everyone, but it certainly is a choice that you should not exclude
because you are worried about finances. There are many options to
support you in your post-secondary education, and Loyalist is committed
to doing its best to support as many students as possible.
Some students feel that they may not be able to afford college,
but in reality, many may not be able to afford not to go. The average,
lifetime earnings of college graduates are significantly higher
than those of secondary school graduates who do not attend further
education. Also, the unemployment rate of college graduates is significantly
lower than secondary school graduates. Most "good jobs"
today (those that are more interesting, have better working conditions,
have more potential to advance, pay better, and have benefits) now
require post-secondary education.
If you need further information on financial assistance programs
at Loyalist College, please call 1-888-LOYALIST or (613) 969-1913
extension 2226.
E-mail Pearl Vani-Hill
at vanihill@loyalistc.on.ca.
Sources: Revenue Canada, Canada Student Loan, Ontario
Student Assistance Program, University of Western Ontario, Dr. Doug
Auld (President of Loyalist College), Loyalist Financial Aid Staff.
Updated April 2001.
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