How does the average Canadian pay for university?

Post-secondary education can be expensive, and costs continue to rise gradually each year. If you or your children are planning to pursue education beyond high school, it pays to plan ahead. By saving early and taking advantage of all the financing options available to Canadian students, you can feel more confident about covering the cost of higher education.

Here’s everything you need to know about paying for post-secondary education in Canada and how you can boost your school savings.

How much does post-secondary education cost in Canada?

In Canada, annual tuition fees can range from $2,500 to $11,400, depending on the school and program. Over the course of a four-year undergraduate program, those costs can add up. Here’s a breakdown of the average undergraduate tuition costs for full-time Canadian students by province:

On top of tuition, you also need to account for housing, food, transportation and school supplies. That can add up to more than you might expect, which makes early planning even more important. Understanding the full cost can help families set realistic goals and avoid surprises later

For example, here’s what an undergraduate student in a Bachelor of Arts (BA) program at Dalhousie University in Nova Scotia might need for a single school year:

For many families, that estimate can be eye-opening. A four-year degree could easily be more than $100,000 when tuition and living expenses are combined. That’s why relying on a single source of funding may not be enough. 

What sources do Canadians use to pay for post-secondary education?

One of the biggest misconceptions about paying for university is that there’s a single solution. In reality, most Canadians combine several funding sources to bridge the gap between education costs and available savings. These most commonly include:

• Registered Education Savings Plan (RESP) savings: RESPs are one of the most popular options for Canadians to fund higher education for a child. In 2024, the average RESP withdrawal was $11,446.
• The Canada Education Savings Grant (CESG) and Canada Learning Bond (CLB): In 2024, 3.1 million beneficiaries received CESG payments and over 715,000 beneficiaries received CLB payments.
• Student loans: In addition to RESP savings, many students rely on student loans to fund their education. As of 2020, 40% of bachelor’s graduates owed government-sponsored loans, with an average debt of $23,000. Additionally, 20% of bachelor’s graduates owed non-government loans (private), with an average debt of $24,000.
• Scholarships: In 2025, the average scholarship amount awarded in Canada was worth about $2,867, though awards can range from a few hundred to several thousand dollars.
• Grants and bursaries: Eligibility for these payments may be based on income, personal background, area of study or other criteria. That means the amount you qualify for can vary.
• Part-time work: Many students work part-time throughout their studies, which can help offset many costs.

Let’s go back to that undergraduate student at Dalhousie who needs $27,405.49 per school year. Here’s how they might pay for those costs:

Strategies to help you pay for higher education if you’re a parent

Use an RESP to fund post-secondary education costs

An RESP is a tax-advantaged account that can help you save for your child’s post-secondary education while also taking advantage of government grants. Contributions grow tax-deferred and withdrawals are taxed in the hands of the student, who often faces little to no tax payable since they are typically in a lower tax bracket.

RESPs have a lifetime contribution of $50,000 per child, with no annual limits. So, contributing early, even small amounts, means your savings have more time to grow and take advantage of compounding. This also gives you more time to maximize the benefits from government grants available through an RESP. Plus, RESP savings can be used for more than just tuition, helping you cover the cost of several education-related expenses.

In 2024, the average annual RESP contribution was $1,804. While that might not seem like a large amount, consistent annual contributions can add up over time and help you reduce how much you need to borrow when it’s time to pay for school.

If you’ve maxed out your RESP, a Tax-Free Savings Account (TFSA) can be another useful way to continue building education savings. This account offers tax-free investment growth and withdrawals, giving you flexibility to cover school-related costs. 

Take advantage of government grants

Opening an RESP for your child allows you to take advantage of government grants: the CESG and CLB. Both are deposited directly into the RESP of eligible beneficiaries.

• Canada Education Savings Grant (CESG): Through the Canada Education Savings Grant (CESG), you can receive an additional 20% on any annual contributions you make, up to $500 ($1,000 if there’s unused grant room available). There’s a lifetime maximum of $7,200 per beneficiary. It can be valuable to contribute at least $2,500 annually to take advantage of the maximum CESG amounts.
• Canada Learning Bond (CLB): The Canada Learning Bond (CLB) helps families within a certain income threshold build education savings, offering up to $2,000 per beneficiary.

Students may also qualify for the Canada Student Grant, which provides non-repayable financial assistance based on financial need. When you apply for federal or provincial student aid, you're automatically assessed for eligibility, so there's no separate application process.

While these amounts won’t cover the entire cost of university, they can significantly reduce how much students need to borrow. The earlier you sign up for these grants, the more time that money has to grow before your child needs it for school.

Consider tax credits and benefits

There are several tax credits that students can take advantage of, including the tuition tax credit. Dependent students can transfer this credit to you as a parent. This could be a good option when you’re in a higher tax bracket than your child, as it can help you lower your overall tax bill.

Strategies to help you pay for higher education if you’re a student

Apply for scholarships and bursaries

Scholarships are generally tied to academic performance, while bursaries are based on need and personal circumstances, such as where you’re from, the field you’re studying and even where your parents work. It’s always worth applying, even if you think it’s a long shot, as many of these funds go unused due to a lack of qualified applicants. It’s important to start researching your options early to ensure you hit deadlines and to apply every year to maximize your opportunities.

See if you’re eligible for student financial support

Government student loans are a common source to help you pay for post-secondary education. There are both federal and provincial loans, so the specific program and loan conditions will depend on your province or territory of residence. Unlike grants, these amounts eventually need to be repaid, but federal and some provincial student loans are interest-free.

Private financial institutions also offer loans and lines of credit to students. A loan is usually a lump sum that you start paying interest on right away, while with a line of credit, you only borrow what you need and pay interest on that amount. Again, you’ll need to repay these under the lender’s rules.

Understanding how your aid package is structed can help you estimate your future repayment obligations and determine whether additional savings or funding sources may be required.

Look for co-operative education (co-op), internships and part-time jobs

Earning money while you study is a good way to help cover costs and limit the amount of debt you have to take on. Co-op programs allow you to periodically work jobs related to your field of study as part of your learning. Similarly, internships, which normally happen during the summer, give you the opportunity to gain work experience while earning an income. Working a part-time job throughout the school year is another useful way to bring in some extra cash.

Consider tax credits and benefits

There are several tax credits that can help you save money now or in the future:

• Eligible tuition fees: Certain tuition fees can be claimed as a tax credit. You can also transfer them to a spouse or parent or carry them forward to future years when the tax savings might be more valuable.
• Moving expenses: If you move 40 km or more for full-time post-secondary education, you can claim moving expenses on your income tax return.
• Canada Groceries and Essentials Benefit (CGEB): If your income is within a certain threshold, you may be eligible to receive tax-free Canada Groceries and Essentials Benefit payments. The amount you receive depends on your situation and will be paid out quarterly.
• Interest paid on your student loans: If you have to pay interest on government student loans, you may be able to claim those amounts on your income tax return.

The bottom line

The cost of post-secondary education can feel overwhelming, but most Canadians don’t pay for it using a single source of funding. Instead, they combine education savings, government grants, scholarships, employment income and student aid to make higher education more affordable. With thoughtful planning and guidance from a financial advisor, you can help make the dream of higher education possible.

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