What’s Your Plan?

1. What’s Your Plan? Planning & Financing Your Post-Secondary Education 2006/2007

2. Case Study: Kayla, 18 “University or college always seemed like a logical next step ... I just never gave it much thought before it was time to make my decisions.” School: University of Lethbridge Program: General Studies (Arts) Cost: $5,848 tuition and books $6,496 residence, food, transportation Financing: $ 804 in savings $1,500 from parents $ 700 Scholarship $1,500 Alberta Opportunities Bursary $7,140 government-sponsored student loans $ 700 Loan Relief Benefit $1,000 Millennium Alberta Rural Incentive Bursary

3. Case Study: Will: 18 “I’m moving to Calgary to start a personal fitness trainer program. I’m thinking of working as a snowboard instructor or a fitness trainer after I’m done. Eventually, I want to own my own fitness equipment store.” School: Mount Royal College Program: Personal Fitness Trainer (10-month program) Cost: $6,165 in tuition and books $8,070 residence, food, transportation Financing: $1,920 savings $1,000 from parents $1,500 Alberta Opportunities Bursary $9,815 government sponsored student loans

4. Case Study: Jamie, 24 “I wasn’t ready for university or college right after high school. But now I’m thinking of opening my own restaurant and I want to learn how to manage it properly.” School: Southern Alberta Institute of Technology Program: Hospitality Services (Diploma 2-year) Cost: $5,220in tuition and supplies $6,496 in living expenses Financing: $3,336 in savings $1,400 from part-time job $6,230 in student loans $ 750 Alberta Opportunities Bursary $1,000 Millennium Alberta Rural Incentive Bursary

5. You Need A Plan Planning does not mean deciding what to do for the rest of your life The sooner you start planning, the more options you will have after you graduate from high school Study your options - especially if you are not sure what you want to do

6. First Things First - Where to Go? There are many post-secondary education options to consider • Universities • Public and Private Colleges • Technical Institutes • Private Vocational Schools • Apprenticeship Programs Which option will help you meet your goals?

7. Universities Universities offer a range of traditional undergraduate and graduate degrees Undergraduate degrees usually take 4-5 years Private Colleges offer selected university-level degrees

8. Public Colleges 15 public colleges across Alberta Offer a broad range of certificate, diploma, and applied degree programs Certificates and diplomas take 1-2 years; applied degrees take 4 years Some colleges focus on a specific industry

9. Technical Institutes Offer a variety of 1-2 year certificate and diploma programs and 4 year applied degrees Co-ordinate most apprenticeship programs in Alberta Work closely with business community to tailor programs to meet labour market demands Two technical institutes in Alberta • SAIT - Southern Alberta Institute of Technology • NAIT - Northern Alberta Institute of Technology

10. Private Vocational Schools Offer a variety of short diploma programs (1-2 years) providing job-specific training Often focus on one sector (technology or administration) Many provide extra job-hunting support to graduating students Funded entirely through student tuition

11. Why go back to school? What do you expect from your post-secondary experience? • Increase your knowledge & skills? • Get a specific job? • Increase your earning potential? • Have a great social life? (be honest) What do you want to do after you finish your education? • Pick a program that you will find interesting

12. How Much? Living at home: $7,000 - $9,000 Living away from home: $10,000 - $12,000

13. Part-Time Study Shorter Program Living With Family Full-Time Study Longer Program Living Away From Home How Much?

14. How Will I Pay For It? Your Savings • Maximize them through investments • Talk to your lending institution about investing strategies that will help you earn as much interest as possible Family Contributions • Parents are expected to help if they can • Your family’s income will be considered if you apply for government assistance

15. How Will I Pay For It? Jobs • It is expected that you will work the summer before starting post-secondary and save at least $360 a month • A part-time job during post-secondary may help cover some expenses Apply for Co-op, Apprenticeship or Fellowship Programs

16. How Will I Pay For It? Scholarships & Bursaries • Scholarships usually based on grades or other achievements • Bursaries usually based on demonstrated financial need • Sources include government, your post-secondary school, community groups, and corporations

17. How Will I Pay For It? Government-Sponsored Student Loans • Federal and provincial • No payments while you’re a full-time student Government Grants and Bursaries • NEW – Millennium Alberta Rural Incentive Bursary • Alberta Opportunities Bursaries • Canada Study Grants-Access grant for low income students and students with permanent disabilities • Canada Millennium Bursary • Northern Alberta Development Bursary

18. How Will I Pay For It? Credit Products from Lending Institutions • Student Loans and Lines of Credit • alternative for students who may not qualify for government- sponsored loan • make interest payments only while you are a student; start repayment 6 months after you leave school • may need a guarantor or co-signer

19. How Will I Pay For It? Savings Part-Time and Summer Jobs Family Contributions / RESP Scholarships and Bursaries Co-op, Apprentice, Fellowship Programs Government-Sponsored Student Loans Government Grants Student Loan Products from Lending Institutions

20. Student Loans WHAT? Government-sponsored student loans To reduce the financial barrier to post-secondary education Canada Student Loans Program (Government of Canada) & Alberta Students Finance (Government of Alberta) Apply on-line at www.alis.gov.ab.ca, or pick up an application at your guidance office, post-secondary financial aid office, Alberta Service Centre, Canada-Alberta Service Centre Apply early – before May 31 for September study WHY? WHO? WHERE? WHEN?

21. Student Loans Are you eligible? • Are you an Alberta resident? • Yes • Are you or will you be a full-time student? • Yes • Are you and your parents able to pay for the full cost of school yourselves? • Yes  • No  • No  • No

22. Student Loans How much can you borrow? • Calculated Need can include loans and grants • Maximum loan for single student: $12,400/year (2 semesters) • More for students with special circumstances Calculated Need = Allowable Costs - Resources Available

23. Student Loans Alberta Student Loan Relief Program • Two separate benefits at 2 points in study • Alberta Student Loan Relief Benefit • For first-time student in first-year of full-time post-secondary studies • Loan Relief Program Completion Payment • Gives helping hand at the completion of studies.

24. Student Loans Paying it back • Six month grace period before repayment begins • Interest starts accruing when you leave full-time studies • Repayment period depends on size of your loan Power of compound Interest (assumes interest rate of 7%)

25. Will I Be Broke Forever? Alberta Student Loan Relief Program • Alberta government may pay back part of larger loans Tax Credits • Income tax credit of 17% on interest paid on student loans Interest Relief • Payments on student loans can be suspended for a short period of time Debt Reduction • Students having repayment problems five years after leaving school may have some of their Canada Student Loan reduced

26. 5 Steps to a Plan Think hard about what you want from school Look at ALL of your options for schools and programs Look at ALL of your options for financing Make the choices that will help you achieve your goals Plan ahead!

27. Getting Help www.alis.gov.ab.ca, click on Students Finance High School Guidance Counselor Post-Secondary Financial Aid offices Student Funding Contact Centre: in Edmonton 427-3722 or toll free in Canada 1-800-222-6485 Canada-Alberta Service Centres Alberta Service Centres

28. So … What’s Your Plan?