Students need financial plan to control expenses

By Justin Cartier

A poor student is an average student.

Based on data received from three different surveys on Statistics Canada, well over half (57 per cent) of graduating students have student loans which they will need to pay back.

To make an assessment of how much money may be needed to finance a full school term, a summary of likely expenses must be thoroughly examined. A great starting point is to organize a list of unavoidable expenses such as tuition, ancillary fees, transportation and housing.

For a college student, these expenses, on average, according to the Ministry of Training Colleges and Universities of Ontario’s website, add up to roughly $17,000 to $20,000 per year.

Apart from traditional schooling fees, a student enrolled in a specialized program such as architecture, dentistry, medicine, photography, advertising or graphic arts may be required to purchase equipment with a high price tag. These additional requirements may lead to an unexpected financial dent.

Many solutions are present for students who foresee financial insufficiencies. Most, however, require a certain amount of predetermined financial need and preparation. The most common of these services are those of OSAP, scholarships and grants. Unfortunately, most students misleadingly believe these are the only options available.
Referring to social assistance, Pearl Vani-Hill, financial aid officer at Loyalist College, said, “There are some numbers you can call if it’s a one-time, you can’t afford the rent or you can’t afford a bill.”

Essentially, so long as a student does not have OSAP provided and does not have an income over roughly $400 a month, he or she may be eligible to receive funding from financial assistance to help achieve this minimal income.
As well, this assistance could not only provide housing payments, but open doors to the food banks and a certain amount of health care during a time of need. These options would drastically reduce the amount of accrued debt after post-secondary education.

Apart from governmental related assistance, part-time employment during a school year, although distracting, not only provides dependable income, but provides a larger cheque when income tax is claimed.

“A student who works in a summer and hopefully lives at home is able to save about $2000. That’s the time for them to put away some savings for school.”

“Some students might have to take a couple of years off. Save. They don’t like that suggestion, but for some students, if they work part time and live at home, can do a payment plan, where it doesn’t have to be up front and can be in a payment plan.”

Coincidentally, a certain degree of preparation and commitment is necessary in order to have a financially stable education. The foundation of a financial plan will make the optimal difference.