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STUDENT PRIMER

Roughly 45 per cent of students enrolled in Canadian universities and colleges have borrowed from the Canada Student Loans program. Students apply for provincial and federal assistance-including grants offered by the Canada Millennium Scholarship Foundation-using a single application form. Applications are then processed and individual needs are assessed by the student's home province or territory.

Government loans are based on demonstrated need, with two main factors taken into account: the cost of studies, as well as family and personal resources available to applicants. Under the Canada Student Loans program, students are expected to work during the four-month period before studies begin. Parents are expected to contribute to the cost of their son's or daughter's postsecondary education-unless the student is considered independent, has been in the labour force for two years, has been married or is a single parent.

Canada Student Loans meets up to 60 per cent of a student's assessed need. Until August, the weekly limit will remain at $165, or roughly $5,610 for a 34-week period of study. After that date, the weekly limit will rise to $210 or $7,140 over 34 weeks. Most provinces top up that amount. Northwest Territories and Nunavut run fully autonomous loan systems, but application procedures are comparable. As long as students are enrolled full-time at a postsecondary institution, they do not have to make payments. And while interest begins accruing immediately on completion of studies, there is a six-month grace period before the first payment is due.

Millennium bursaries are geared to students in the greatest financial need, and range from $1,000 to $4,500 a year. Students are automatically assessed for eligibility when they apply for a student loan from their province. Since agreements between individual provinces and the Canada Millennium Scholarship Foundation differ, some students benefit more than others. Alberta has used provincial funds freed up by the Millennium bursaries to boost the maximum amount that students may borrow. Seven provinces, including Ontario, British Columbia and Nova Scotia, direct the Millennium bursary toward reducing the amount students owe on their provincial loans. The bursaries are available only to full-time undergraduate students who have completed at least 60 per cent of a first-year academic course load in a postsecondary program.

In 1998, the government introduced the Canada Study Grants, a supplement to federal and provincial loans for students with children or other dependants, and for those who have disabilities. The grants are also available for women who enrol in doctoral studies in science and engineering, to encourage more women to enter those fields. The grants provide as much as $8,000 a year to more than 50,000 full- and part-time students.

Current rules stipulate that a person may not declare personal bankruptcy on their student loan within the first 10 years of finishing their post-secondary studies. Also, Ottawa institutes credit checks for first-time applicants who are 22 or older. Candidates are ineligible for Canada Student Loans if, in the three years before applying, they have missed payments on three separate debts, each totalling $1,000 or more.

Most major banks offer students a line of credit, which is more flexible than a personal loan. With a line of credit students withdraw funds as needed, up to a predetermined limit, paying monthly interest on the amount borrowed. Depending on the financial institution, students can borrow as much as $15,000 a year to a maximum of $40,000.

As a rule, a co-signer is required and the individual's credit history is reviewed. Most banks offer a six: to 12-month grace period following graduation, after which students must begin paying back the principal.

Students are now investing an increasing amount of energy in the search for scholar: ships. The good news? The number of awards continues to grow: each year, more than $200 million in public and private funds is distributed to undergraduate students in the form of merit scholarships, ranging in value from $100 to $60,000. Of this amount, the vast majority goes to first-year students in the form of entrance scholarships.

The most important step is simply applying. While there are many private awards available, universities control more than half of the scholarship dollars in Canada. As well, a growing number of universities are offering automatic scholarships for students entering with strong grade averages. In other cases, students must make a separate application for the scholarship they seek.

Working during the academic year may be both necessary and desirable for some students. Be aware that there is a limit to how much a post-secondary student may earn without affecting the amount of their student loan: two years ago, the government raised the ceiling to $1,700 a year. Students can earn almost twice as much as non-students before their income becomes taxable.

One of the most popular ways to earn money and gain experience is through a co-operative education program, whereby students alternate academic terms with related work placements. In the academic year 2003-2004, almost 54,000 students were enrolled in co-op programs at Canadian universities.

If co-op is not an option, most campuses have a career centre that posts jobs online 'for work both on and off campus. One of the best places to find an on-campus job is through the student union: many use their websites to post non-elected positions. At the University of Calgary, for instance, students can earn a $5 hourly credit toward their tuition by volunteering with the Safewalk program. Meanwhile, at the University of Western Ontario, students can add their name to the student union's online casual-labour call list: the work schedule is irregular and duties range from distributing flyers to promoting events, but it is a good way to earn some extra money.

Bear in mind: governments are also a good source for jobs. Human Resources and Skills Development Canada runs Job Bank (www.jobbank.gc.ca), where students can search by job title and location.

The following are just a few of the hundreds of scholarships available from sources other than universities.

Canada Millennium Scholarship Foundation
Excellence Awards
www.millenniumscholarships.ca
Value: Ranges from a one-time payment of $4,000
to $5,000 annually, renewable over four years

Candidates must demonstrate a record of leadership, community service and innovation, and graduate with a high academic average in their final year of high school or CÉGEP.

Canadian Merit Scholarship
Foundation Awards
www.cmsf.ca
Value: Up to $75,000, over four years

Candidates must demonstrate a record of leadership and community service, and graduate with at least an 80-per-cent average in their final year of high school or C&EGEP.

TD Canada Trust Scholarships
for Community Leadership
www.tdcanadatrust.com/scholarship
Value: Up to $60,000, over four years
(includes summer employment)

Candidates must demonstrate a record of leadership and community service.

Terry Fox Humanitarian Award
www.terryfox.org
Value: $28,000, over four years

Candidates must be involved in volunteer humanitarian service and have shown courage in overcoming a personal obstacle.

Women in Engineering and Science Program
www.nrc.ca
Value: Approximately $33,000, over three years
(includes summer employment)

Open to female university students in mathematics, science or engineering.

As Prime Minister Awards
Magna for Canada Scholarship Fund
www.asprimeminister.com
Value: $20,000, plus a year-long internship
at Magna International

Open to full-time students at a Canadian university, college or CÉGEP. Candidates must write a 2,500-word essay.

PHOTO (COLOR): Investing in a post-secondary education pays huge dividends

PHOTO (COLOR)