How to Pay for College Without Loans in Canada

Paying for post-secondary school without loans usually means combining several sources, since few families cover the whole cost from one. The main ones are savings (an RESP above all, because the government adds to it), grants that don’t need to be repaid, scholarships and bursaries, earnings from work during and between terms, and choices that lower the bill in the first place. This page goes through each and links to the guides that cover them in detail.

What a year of school costs, tuition by province included, is in how much university costs in Canada.

Savings: the RESP

A Registered Education Savings Plan is the savings account built for education, and the federal government adds money to it: the Canada Education Savings Grant pays 20% on the first $2,500 contributed each year, up to $7,200 per child, and lower-income families can get more, plus the Canada Learning Bond without contributing anything. Growth is sheltered until the money is withdrawn for school. The grant rules are in the CESG guide, and the whole account in the RESP guide. How saving ahead compares with borrowing, with a worked example, is in RESP vs student loans.

Grants you don’t repay

Applying for student aid doesn’t commit you to borrowing: grants are assessed first, and in Ontario, for example, you can accept the grants and decline the loan after your application is approved. The federal Canada Student Grant for full-time students pays up to $4,200 a year in 2026-27 to students below an income cut-off, with separate grants for part-time students, students with dependants and students with disabilities; all are explained in the Canada Student Grants guide.

Provinces add their own grants through the same application, compared in the provincial student grants guide. How much is grant and how much is loan varies a lot: for programs starting on or after August 1, 2026, Ontario caps the grant share of provincial OSAP aid at 25%, while Nova Scotia gives students at its schools a grant worth 40% of their provincial loan (Nova Scotia student loans). Some provinces also forgive provincial loans for students who finish on time, which works like a grant after the fact; see student loan forgiveness in Canada.

Scholarships and bursaries

• Entrance scholarships from your school, often assessed from your admission average, some automatically and some by application.
• In-course scholarships for continuing students, usually tied to grades.
• Bursaries from your school’s financial aid office, based on need.
• External awards from employers (including a parent’s), community groups, foundations and organizations tied to a field of study or heritage, such as Indspire for Indigenous students.

Each school lists its own awards and deadlines, and many external awards need a separate application.

Work during and between terms

Earnings from a part-time job during the year, summer work and paid co-op terms all reduce what needs to be covered. Co-op programs alternate study terms with paid work terms, which adds time to the program but can cover a large share of the cost. Students who earn income file a tax return, which can also produce a refund and carry forward unused tuition credits; see taxes for students who work while in school. Student aid assessments count your own income, so earnings can reduce the aid you’re assessed for.

Lowering the cost

• Living at home removes the biggest cost after tuition for students who can commute.
• Starting at a college and transferring credits to a university can lower tuition for the first years, where transfer agreements allow it.
• Choosing a lower-tuition province or school: tuition varies widely by province (how much university costs in Canada).
• Textbooks and discounts: used and open textbooks, library copies and student discounts.
• Tax credits: the federal tuition credit from your school’s T2202 slip reduces tax once you have income, now or later (tuition tax credit).

A student bank account without monthly fees helps the budget too.

If you still need to borrow

When savings, grants, awards and work don’t cover everything, the government loan usually costs less than private credit: the federal part of a Canada Student Loan charges 0% interest, and repayment help is available after school, while a student line of credit charges interest from the start. How each province’s loans work is on the student loans hub.