Student Money Guide: Finance Essentials for Canadian Students

Paying for school in Canada comes down to three questions: what it will cost, how you will cover it, and how you will manage money while you study. Tuition varies most by province and program, and residence, rent, food and books often add more than tuition itself for students who move away from home. Most students combine several sources, from grants, scholarships and RESP withdrawals you never repay to government student loans and bank lines of credit you do.

What school costs

Tuition is set by each school and varies most by province and program; residence, rent, food and books often add more than tuition itself for students who move away from home. The full breakdown, with tuition by province and program and four-year totals, is on what university costs in Canada. For a month-by-month view of living costs in Toronto, Vancouver, Halifax and smaller cities, see the student budget by city. Other everyday costs, from cars to weddings, are collected in the how much does it cost directory.

Graduate students face a different mix of funding and costs, covered below: tri-council awards, university funding packages and TA and RA work.

How to pay for it

Most students combine several sources. The order below runs from money you never repay to money you borrow.

Grants and loans are assessed together when you apply through your province’s student aid program, which also processes the federal portion. Ontario students apply through OSAP: the OSAP guide explains how it works and the OSAP calculator estimates an award. Each province’s loan program has its own page under student loans.

After school, government loan payments can be reduced or paused under the Repayment Assistance Plan if your income is low. A bank line of credit has no equivalent, which is the main trade-off covered on the line of credit vs student loan page.

Managing money while you study

• Budget. Start from your real monthly costs: rent, food, transit, phone and books, against what grants, loans, work and family will cover. The student budget by city shows typical monthly totals and how to build your own.
• Discounts. Student pricing on transit, software, phones and food can add up over a year: see the student discounts list.
• Banking. Most big banks and several online banks offer a no-fee account for students: compare them on student bank accounts.
• Credit. A first card with a small limit, paid in full each month, starts a credit history before graduation: see student credit cards.
• Taxes. Filing a return each year, even with little income, records your tuition amounts and makes you eligible for benefits. The student tax guide covers filing when you work, the tuition tax credit covers how tuition reduces tax (claimed from your T2202 slip), and tax on scholarships and stipends explains when award money is taxable.

Students in other situations

• International students face higher tuition, a cap on off-campus work hours and a proof-of-funds requirement for the study permit: see international student finances.
• Taking a year off before or during school: gap year planning covers costs, savings and working-holiday visas.
• Teens learning the basics before post-secondary: money basics for teens.
• Parents of school-age kids: back-to-school costs covers what September costs and when to buy.

Graduate school funding

A master’s or PhD is funded differently from an undergraduate degree: research programs usually come with a funding package from the university, built from scholarships, teaching and research assistantships and sometimes a tuition waiver, and the largest scholarships come from the three federal research councils. Professional master’s programs are more often self-funded.

Types of graduate funding

Major national scholarships

Canada Graduate Research Scholarship - Doctoral (CGRS-D, formerly CGS-D and Vanier)

Following Budget 2024, the three federal research councils harmonized their doctoral awards under the Canada Research Training Awards Suite (CRTAS). The new Canada Graduate Research Scholarship - Doctoral (CGRS-D) replaced the former Canada Graduate Scholarships - Doctoral (CGS-D), agency-specific doctoral awards, and the Vanier Canada Graduate Scholarship, which no longer exists as a separate program.

Canada Graduate Research Scholarship - Master’s (CGRS-M, formerly CGS-M)

Provincial scholarships: Ontario Graduate Scholarship (OGS)

Other provinces have similar programs (e.g., BC Graduate Scholarship, Alberta Graduate Student Scholarship).

University funding packages

Typical PhD funding

A funded PhD offer usually combines a base scholarship or fellowship, a teaching assistantship and, in many science programs, a research assistantship paid from the supervisor’s grants. The guaranteed minimum differs widely by school and field, so compare offers on the total and on what each part requires (TA hours, years guaranteed, whether external awards replace or add to it).

Funded vs unfunded programs

Student loans for graduate students

Graduate students apply for government student loans and grants through the same provincial program as undergraduates, assessed on need. The federal portion charges 0% interest, and no interest is charged while you’re a full-time student. The provincial programs, the Repayment Assistance Plan after school and the bank line of credit alternative work as described above.

Strategies to fund graduate school

Maximize free money first

Reduce costs

Increase funding

External scholarships

Industry and foundation scholarships

Foundations (such as the Trudeau Foundation doctoral scholarships), university endowed awards (such as Killam awards at the universities that offer them), professional associations and industry partnerships all fund graduate students. Values and deadlines change each year and are published by each funder.

Scholarship databases

Taxes on graduate funding

How grad funding is taxed depends on what it is. Scholarships, fellowships and bursaries are reported from your T4A and are generally exempt when you’re a full-time student; research grants and stipends follow other rules. The full rules, including the scholarship exemption and part-time students, are on are stipends taxable in Canada.

TA and RA positions paid as employment are T4 income: your university deducts income tax, CPP contributions and EI premiums, and the TD1 you give your employer sets the tax withheld. Tuition reduces tax through the tuition tax credit, with unused amounts carried forward, and filing as a student who works is covered on taxes for students who work.

Building RRSP room during graduate school

RRSP room comes from earned income, which includes employment income such as TA and RA pay on a T4 but not scholarship or fellowship income: each year adds 18% of the previous year’s earned income, up to the annual limit.

Unused room carries forward, so it can be used in a higher-income year after graduation, when the deduction is worth more. How RRSP room works is covered in the RRSP guides.

Timeline

Before applying to graduate school

During graduate school

All student finance articles

Costs and budgeting

• How Much Does University Cost in Canada?
• Student Budget by City
• Best Student Discounts in Canada

Paying for school

• How to Pay for College Without Loans

Students in other situations

• International Student Finances in Canada
• Gap Year Financial Planning

Before post-secondary

• Financial Literacy for Teens

Related pages

• RESP Guides for Canadian Families
• What Is a TD1 Form in Canada?