How Will You Pay For Your Education?
A college or university education is a big investment. If you want to attend college or university, but need financial help, you have a number of options.
- Ask your college or university
The college or university you plan to attend may offer grants, loans and scholarships. You’ll often find these listed in the course calendars of colleges and universities.
Find information on the Ontario Student Assistance Program, check the status of your OSAP application, or even apply online at the OSAP website:
- Apply for an OSAP grant or loan
Students from lower- and middle-income families in Ontario may qualify for grants and loans from the government. These are offered through the Ontario Student Assistance Program, often called OSAP.
What’s the difference between OSAP grants and loans?
Some students may get OSAP grants, which do not need to be repaid. Students may also get loans to help pay for their education. You must start repaying your OSAP loans 6 months after you graduate, leave school, or stop being a full-time student.
Getting a loan from OSAP, or any other lender, is a big decision. Be sure you understand the total amount you are borrowing, and how and when you must repay the loan.
Grants, Bursaries and Other Forms of Non-Repayable Financial Assistance
In addition to student loans, OSAP also provides grant, bursary, scholarship and fellowship assistance, which students are not required to repay.
What is it?
Grant/Bursary: A grant or bursary is an amount of money you receive to help finance your education that you typically do not have to pay back. A grant or bursary is usually awarded based on financial need and other factors. Some are designed for special student groups, like students studying in French.
Scholarship/Fellowship: A scholarship or fellowship is money you receive that helps finance your education and that you typically do not have to pay back. It is usually awarded based on academic merit and other factors.
Is it taxable?
The full amount of scholarships, grants and bursaries that are received by students with respect to their enrolment in a program that entitles them to claim the education amount are not taxable and are no longer reported as income on tax returns.
Scholarships, fellowships, bursaries, study grants, and artists’ project grants
If the scholarships, fellowships and bursaries you received do not include artists’ project grants, then the following applies.
The full amount of scholarships, fellowships, or bursaries that are received by you as a student with respect to your enrolment in a program that entitles you to claim the education amount are not taxable and are no longer reported as income on your tax return. See the section Tuition, education, and textbook amounts for details.
If you are not eligible for the education amount, and have no artists’ project grants, report on line 130 only the part of the post-secondary scholarships, fellowships or bursaries that is more than $500.
Note
For 2007 and subsequent years, elementary and secondary school scholarships and bursaries are not taxable and are not subject to the requirement that they be eligible for the education amount.
Source: http://www.edu.gov.on.ca/eng/general/postsec/studentassistance/
https://osap.gov.on.ca/eng/not_secure/plan_grants_12.htm
http://www.cra-arc.gc.ca/E/pub/tg/p105/p105-e.html#P109_7625
