What You Need To Know
Trent’s Student Guide to Financial Literacy
2012-13
Welcome to Trent University. In addition to the academic challenges
students encounter in university, there are financial challenges that must
be addressed. We hope this booklet will help you plan financially for your
university career and remove some of the myths of student finance.
TABLE OF CONTENTS
Loans and Grants ..............................1
OSAP
Ontario Tuition Grant
Other Funding . ...................................2
Scholarships, Bursaries, Employment
RESPs
Student Lines of Credit, Credit Cards
Budgeting.............................................4
Personal Income and Expenses Charts
loans AND long term stuff...............6
OSAP Repayment
Credit Scores
Filing Taxes
Living on your own . ..........................7
how to be a financially
successful student.............................8
resources, notes.................................9
LOANS AND GRANTS
The Ontario Student Assistance Program (OSAP)
Financial assistance in the form of grants and loans is available through the Ontario Student Assistance Program.
Funded by federal and provincial governments, the program provides interest-free loans and non-repayable grants to
students throughout their academic careers. The purpose of the OSAP Student Assistance program is to assist full-time
(at least 60% course load or 40% load for students with a permanent disability) students when the financial resources
available to them from parents, spouses, summer employment or other sources are insufficient to meet estimated
educational costs.
• The best way to find out if you’re eligible for OSAP is to apply
• There is no cost or obligation if you apply
• Loans are interest-free and do not need repayment while the student is in school full-time
• The maximum funding a student may receive per year is between $13,000 and $14,000
• For students from outside of Ontario or Canada, contact your regional government
for access to student loans
Ontario Tuition Grant
The 30% Off Ontario Tuition for 2012–2013 provides:
• $1680 for university students for a fall/winter session
OR • $840 per semester
You could be eligible for 30% off your student tuition if you meet all of the
following requirements:
• you’re a full-time student at a public college or university in Ontario
• it has been less than four years since you left high school
• you’re in a program that you can apply to directly from high school
• you’re a resident of Ontario
• your parents’ gross income is $160,000 or less
You are automatically considered for the grant if you have submitted an
OSAP application. If not, you can apply separately on the OSAP website.
Check the OSAP Aid Estimator online to get an estimate
of your funding.
https://osap.gov.on.ca/osapportal
The following values were generated using the estimator. These estimates assume a two
parent family, with two dependents; one attending post secondary for the fall/winter session,
living away from home. Your estimate may vary, depending on your family structure.
Family Income
Loan
Grant
Total Funding
$50,000
$9,510
$3,138
$12,648
$80,000
$10,518
$2,130
$12,648
$100,000
$9,629
N/A
$9,629
$120,000
$6,930
N/A
$6,930
My estimate:
This estimate does not include the $1680 in Ontario Tuition grant funding for a fall/winter session.
WHAT YOU NEED TO KNOW Trent’s Student Guide to Financial Literacy
1
OTHER FUNDING
Scholarships
Bursaries
• Scholarships are financial awards given
to students based on merit. In addition to
academic performance, some scholarships
may use additional criteria such as community
involvement or athletics.
• Trent University offers scholarships to entering
students with averages over 80%. See the How
Much Will it Cost brochure or the University
Calendar for more information on internal
scholarships.
• External scholarships are available for
application outside of Trent – see page 9 for
websites dedicated to external scholarships
• Bursaries are financial awards given to
students who demonstrate a financial need.
Students in receipt of OSAP or other provincial
government student aid programs may qualify
for bursaries and awards.
• For students who require more funding,
Trent offers in-course bursaries available via
application in the fall, winter and summer
sessions. Visit the Financial Aid website for
more information on applications.
• External bursaries are available for application
outside of Trent – see page 9 for websites
dedicated to external bursaries
Employment
Finding employment is often about the approach and strategies you use. Check out the online work search resources to become an expert (see
www.trentu.ca/careers/students/action_worksearch.php). Visit the Career Centre,
attend a workshop or book an individual appointment for further assistance.
Job Findin
g Tips
Visit the
C
and atten areer Centre
d the resu
m
work sea
rch work e or
shops
Attend th
e Emplo
Trent Work Study Program (TWSP)
in January yment Fair
Funded by Trent University, TWSP provides part-time jobs on campus during the study
employers to meet
and
period for full-time students whose financial needs are not met through their government
for positio apply
ns
student aid program. Eligibility cards will be available at the Financial Aid Office starting in
September. At Trent University, we offer over 300 positions each year including tour guides,
athletic instructors, lifeguards, club and group assistants, and research assistants. You may earn up
to $2,000 during the year, and your job can provide valuable work experience. This program is only for domestic
students with demonstrated financial need. Please visit the Student Job Board at www.trentu.ca/mytrent to view
current postings.
Summer Positions
OSAP expects students who work during the summer to save
money for their next study session. You should try to save
about $2,000 - $3,000 every summer.
Contact Career Services at [email protected] or check the
Student Job Board via your MyTrent account (click JobBoard).
www.trentu.ca/mytrent
Registered Education Savings Plans (RESPs)
RESPs are common sources of funding for many students.
An RESP is a fund put aside for a student, usually by a parent
or other family member, to fund the student’s education.
Make sure you report your RESP accurately on OSAP and on
your income tax return.
2
WHAT YOU NEED TO KNOW Trent’s Student Guide to Financial Literacy
Student Lines of Credit
A student line of credit is granted to you by a bank and allows you to borrow money up to a maximum per year. You
have to pay back what you borrow, along with interest. During your time in school, most banks require you to make
monthly payments on the interest of the loan only, and not on the actual balance. You accumulate interest each
month. After leaving your postsecondary education, some major institutions give a grace period before you must
begin paying back the loan balance itself. Because these loans are from banks, they often require a certain level of
income. If you don’t meet the income criteria, the loans require a co-signer who will agree to pay back the loan if you
cannot. Keep in mind, the criteria for different lines of credit may vary. It is important to shop around and negotiate
to ensure you get the best value!
Student Line of Credit Example
Interest Rate: Prime Rate (3.00%), plus a variance rate (approximately 2.5%) for a total of 5.5%. This rate can vary.
Minimum Payment: During your time as a student and up until 12 months after, you only pay monthly interest.
Afterwards, you pay $50 OR 1% of the balance monthly (whichever is greater).
Sample Monthly Payment: The monthly interest-only payment on a debt of $10,000 at 5.5% interest would be about $46.
Total amount available: Up to $10,000 per year for full-time students for 4 years depending on how you qualify.
Time to pay off: The maximum time allowed is 20 years at minimum payments.
Credit Cards
Be wary of credit cards – they should NOT be used as a major source of funding!!
Banks and financial institutions issue you a card that allows you to spend money up to a pre-set limit. You have to pay
back at least a minimum percentage of your ending monthly balance by a set deadline. Interest rates are generally
higher than lines of credit. Certain cards that offer rewards have even higher rates of interest.
• You accumulate interest each month
• There is no repayment assistance or grace period
• Carrying a balance results in very high interest payments
• Failing to make monthly minimum payments can result in collection procedures and a ruined credit rating
Credit Card Example
Interest Rate: 19.99% on purchases, 21.5% on cash advances. Your interest payments are TRIPLE what you would pay
with a student line of credit.
Minimum Payment: A percentage of the monthly ending balance, usually 3%.
Sample Monthly Payment: The monthly interest-only payment on a debt of $10,000 at 21.5% interest would be about
$179. If you paid 3% of the balance, the payment would be $300.
Total amount available: Up to a pre-determined credit limit per month (standard starts at $500).
Time to pay off: While making the minimum monthly payments on a credit card with a balance of $1,000, it will take
26 years and 4 months and will cost over $4,000.
WHAT YOU NEED TO KNOW Trent’s Student Guide to Financial Literacy
3
BUDGETING
Preparing a budget may seem like a dull task. However, it will help you see clearly if you have enough money to make
it through the school year and help identify any budget problems. Use the charts on the following pages to calculate
your income and expenses. In case of a shortfall in your budget (total income is less than total expenses), ask yourself:
Do I have an income problem or an expense problem?
Income Problem – Not enough money coming in
• Applying for more external funding can help fill the gap
• Get a job to earn extra money. Check out the Career Centre Job Board for on-campus listings. Try to limit your work to 10 hours per week to avoid a negative impact on your studies.
• Check the Financial Aid website for common OSAP appeal forms, or speak to a Financial Aid staff member
• Ask family members for help
• Apply for in-course bursaries. Applications are available on the Financial Aid website starting in September
Expense Problem – Too much money going out
• On-campus residence:
Reducing off-campus spending, managing your cell phone bill, cutting down on entertainment and other
costs, paying for fewer trips home, or taking a double/triple room with a smaller meal plan can save money
• Living on your own:
Finding a place with cheaper rent (by living with roommates) or with utilities included, getting rid of
unnecessary services (like cable), paying for fewer trips home, cooking all meals at home, and shopping for
sales can help save money
• Living at home:
Cutting down on extra costs, like entertainment, clothing and other extras can help save money
Income Source
Amount Received
OSAP
Ontario Tuition Grant
Entrance Scholarship
Entrance Bursary
In-course Bursary
External Scholarships and Bursaries
Trent Work Study Program (TWSP)
Summer Savings
Parents’ Help
RESP
Line of Credit
Other
Saving Tip
s
Set aside
mon
and payin ey for savings
g down d
ebt
Build up
a “rainy d
ay” fund
Have a sa
v
with auto ings account
matic tra
nsfers
TOTAL INCOME
4
WHAT YOU NEED TO KNOW Trent’s Student Guide to Financial Literacy
Estimated
Monthly
Amount for
8 Months
Actual
Monthly
Actual Spent
To Date
Tuition
$5693
Fees
$1225
Books and Supplies
$1500
Expenses
Residence Room & Meal Plan Cost
(see housing website)
Rent and Utilities (if off-campus)
Groceries
Insurance
Gas
Interest Payable
Internet (if off-campus)
Home Phone (if off-campus)
Cable (if off-campus)
Cell Phone
Trips Home
Clothing
Entertainment
Other
TOTAL EXPENSES
Shortfall or Surplus
Amount
Total Income
(from chart on page 4)
Total Expenses for 8 month term
(from chart above)
Calculate:
Budget T
ips
Use cash
for
budgeted
expenses
Avoid the
extras – p
ack a lun
Keep all re
ceipts to
track spe
nding
Budget in
some fun
ch
TOTAL INCOME minus TOTAL EXPENSES
(negative number indicates a shortfall)
WHAT YOU NEED TO KNOW Trent’s Student Guide to Financial Literacy
5
Loans and Long Term Stuff
OSAP Repayment
For OSAP, you are given a six month grace period
after full-time studies in which you do not have to
repay your loan. Starting payments early and paying
more than what is required will save money in interest
charges in the long run. Always be sure to make
each individual monthly minimum payment! Missing
payments, even small ones, may result in default and
a damaged credit rating.
OSOG
The Ontario Student Opportunity Grant (OSOG)
helps to limit debt to $7,300 per year provided the
information on your OSAP application gets verified.
Visit the Canlearn or OSAP website for more
information.
Having trouble?
Each year, students go into default when they could have received assistance. Repayment assistance is available
through the National Student Loan Service Centre (NSLSC) if:
• You were unable to find a job after graduation
• You had to suddenly leave school and are not prepared to begin loan repayment
• Personal or family illness
If for whatever reason you are not able to make your payments, the NSLSC will help. You are allowed to negotiate the
type of interest rate and length of your repayment period for your loan. The National Student Loan Service Centre
holds a seminar yearly at Trent for more information on loan repayment – this information is available on the Financial
Aid website. Visit the Canlearn website to track your student loans and estimate your monthly repayment amounts.
Visit the Canlearn website and create an account with the NSLSC.
You can track your loans and estimate future repayments.
Watch your email and the Financial Aid website in February and
March for NSLSC repayment sessions.
www.canlearn.ca
www.trentu.ca/financialaid
Credit Scores
Creditors report your payment history to credit agencies, such as Equifax. These credit agencies are what determines
your personal credit score. A credit score is a judgement about the risk you represent financially. The lower the score,
the higher the risk of doing business with you. Credit transactions stay with you for up to SEVEN years in Ontario.
Your credit score is based on:
• Your payment history (Have you ever missed a payment on a debt?)
• Dealings with collection agencies and bankruptcy
• Your outstanding debts
• Your account history
• The number of inquiries made about your credit rating
• The type of credit you’re using
To help manage your credit:
• Always pay bills on time, and at least pay the minimum amount of every bill. Especially with credit cards, it is
more important to make monthly payments than to pay the full balance.
• Make sure each statement/bill is correct
• Don’t accept any form of credit you don’t understand
• Contact your creditor immediately if there are any issues
• Don’t go over your credit card limit
• Work out payment plans with creditors if you can’t afford full repayment
• Be aware of interest rates and how debt builds up
6
WHAT YOU NEED TO KNOW Trent’s Student Guide to Financial Literacy
Filing Taxes
As a student, you should file a tax return each year. Not filing your taxes
could cost you money; you could miss out on some tax credit refunds, and
will not be eligible for OSOG loan forgiveness if OSAP can not verify your
income with Canada Revenue Agency.
When filing taxes, make sure you know what to include
as income and claim the correct deductions. Reporting
accurately may qualify you for tax credits, refunds and
other benefits.
Tax Filing
Tips
Use a s
QuickTax ervice like
or get he
lp from
a tax pro
fessional
Keep all s
ta
receipts th tements and
roughout
year by d
oing “sho the
accountin ebox”
g
For more information visit the Canada Revenue Agency website.
www.cra-arc.gc.ca
LIVING ON YOUR OWN
Leases
In order to rent off-campus, landlords will ask you to sign a lease or rental agreement. This is a contract, usually
8-12 months, requiring you to pay your landlord monthly to live on their property. It is important to understand your
lease/rental agreement – send it to a parent, guardian or contact who can help translate. Try to find a lease that
corresponds with your needs.
Successful Renting
• Be polite, courteous and punctual during viewings
• Know what to look for and ask questions
• Consider renting a single room instead of a single apartment to save money
• Make sure you are living with responsible, safe people
• Use cheques or money orders to pay for rent (not cash) and always be sure to get receipts
• Look for safe buildings with reputable landlords
• Visit the building and area before agreeing to anything
• Check with current tenants of prospective buildings
• Use the off-campus housing office to locate rentals
• When reporting problems to landlords, use email
Check in at the Housing Office at Blackburn Hall or
visit the off-campus housing website for rental listings.
Security Deposits
Be prepared to pay a security deposit. Security deposits ensure that
people don’t improperly break contracts. They are often in the
amount of TWO months’ rent (first and last) and you must pay this
before you move in.
www.trentu.ca/housing
Utilities and Bills
Know about utilities and bills in advance. Have an idea of the utilities and bills that are covered in your lease, and
what you are responsible to pay yourself. Electricity, gas, internet and cable bills can add significant costs to your
rental unit. For example, electric heat can be very expensive during the winter months. If you must pay for utilities,
ask to see bills from the previous year for the unit.
Plan Ahead
Make a plan with your future roommates and stick to it. Know about what kind of house to look for, what furniture
you’ll need and who’s responsible for what. Start planning with your roommates and begin viewings early for the
next year! Visit the off-campus housing website for local rental listings.
WHAT YOU NEED TO KNOW Trent’s Student Guide to Financial Literacy
7
how to be a financially successful student
• Update your budget monthly and try to stay on track
• Look for deals when shopping; for example check the cost of renting text books instead of buying
• Be proactive, do not wait for deadlines. Make all payments on time and apply for aid early.
• Avoid carrying a credit card balance. If you have a balance make sure you pay at least the minimum
amount on time every month.
• Limit the number of credit cards you possess
• Protect and monitor your credit rating
• Limit the times that you order food and eat out. Try to cook and eat at home as much as possible.
• Limit online purchases. They add up faster then you think.
• Avoid marketing schemes. Ask yourself: Do I really need this?
• Pay for goods and services when you receive them; do not pay ahead of time
• Avoid borrowing more money than you need
• Monitor the amount of interest, bank fees and other charges that you pay
• Put aside a bit of money for an emergency fund
• Stick to your own plans and do not succumb to peer pressure
• Feel good about yourself and make sure to budget in a little fun!
For more financial information or to ask a question drop in at the
Financial Aid Office or visit the Financial Aid website.
www.trentu.ca/financialaid
8
WHAT YOU NEED TO KNOW Trent’s Student Guide to Financial Literacy
RESOURCES
Blackburn Hall Offices
Government Resources
Disability Services Office
www.trentu.ca/disabilityservices
OSAP
www.osap.gov.on.ca
Health and Wellness Centre
www.trentu.ca/healthservices
National Student Loan Service Centre
www.canlearn.ca
Registrar’s Office
www.trentu.ca/registrar
Canadian Government Scholarships
www.scholarships.gc.ca
Financial Aid Office
www.trentu.ca/financialaid
Office of the Ontario Ombudsman
www.ombudsman.on.ca
Student Accounts Office
www.trentu.ca/financialservices
Office of the Local M.P.P.
www.jeffleal.onmpp.ca
Housing Offices
www.trentu.ca/housing
Canada Revenue Agency
www.cra-arc.gc.ca
Parking
www.trentu.ca/parking
Financial Consumer Agency of Canada
www.fcac-acfc.gc.ca
Career Services - Student Jobs
Other
Career Centre
Champlain College Rm. 204
www.trentu.ca/careers
Scholarships Canada
www.scholarshipscanada.com
TCSA Office & Surrounding Bulletin Boards
Champlain College Rm. S110
Student Awards
www.studentawards.com
Community Resources
Employment Planning & Counselling Peterborough (EPC) Jobs Office
www.epcjobs.ca
Community Counselling & Resource Centre – Credit Counselling
www.ccrc-ptbo.com
Ontario Job Centre
www.tcu.gov.on.ca/eng/jobseekers
NOTES
WHAT YOU NEED TO KNOW Trent’s Student Guide to Financial Literacy
9
Financial Aid Office, Trent University
1600 West Bank Drive, Peterborough Ontario K9J 7B8
Telephone: 705.748.1524
Email: [email protected]
www.trentu.ca/financialaid