All Posts Tagged With: "Campus Money"
“Flat fees” change and “deferral fees” are done
Ontario announced today that it is making long-anticipated policy changes that will make it easier to pay tuition in that province, a plan that will likely be unpopular with university administrators who will struggle to make up for lost revenue. Beginning in 2014-15, colleges and universities will:
1. No longer be allowed to require fall semester tuition fees before the beginning of August
2. No longer require students who complete Ontario Student Assistance Program (OSAP) applications by the beginning of August to pay their tuition before receiving their financial aid
3. No longer charge deferral fees or interest to those who pay tuition in per-term installments
4. No longer collect deposits of more than $500 or 10 per cent of tuition, whichever is greater
Ontario will also make it cheaper to take less than a full course load. As of fall 2015, university students will be charged on a per-credit basis if they take less than a 70 per cent course load, rather than the full-time student rate charged at some schools. In 2016, that threshold will rise to 80 per cent. Students with disabilities will be charged on a per-credit basis regardless of course loads.
Currently, some universities charge the same tuition rate for anyone taking a course load of 60 per cent or greater. Student groups like the Ontario Undergraduate Student Alliance and University of Toronto Students’ Union have long opposed the policy. Meric Gertler, University of Toronto president, recently said that changes to flat fees could cost U of T $16 million a year in lost income.
Aeroplan miles can be used at UNB and Centennial College
Aeroplan, a Canadian loyalty program, will now allow people to pay university or college tuition using miles collected when they shop at certain retailers, use certain credit cards or fly on Air Canada. The University of New Brunswick and Centennial College are among the first institutions to sign up. Aeroplan miles may be converted at a rate of 35,000 for $250 off one’s own tuition or someone else’s. There’s no limit on conversion. Higher Ed Points, which is behind the program, offers form e-mails students can use to request that friends and family donate their miles.
Two Canadian entrepreneurs plan to try
Crowd funding websites, notably Kickstarter and Indiegogo, are used to raise cash for everything from charitable causes to music projects. Recently, more than 60,000 fans of Veronica Mars used Kickstarter to raise nearly $5 million to produce a movie based on the TV show. It was an impressive use of the concept, which involves small amounts of money from many donors.
FundUni, based in St. John’s, Nfld. is the creation of Kyle Hickey and his brother Trevor, who both attended Memorial University. Though in its infancy, FundUni aims to help both current and prospective students launch tuition funding campaigns. It will work like this: participating students will post a video detailing their stories and ambitions. “The more compelling the better,” says Hickey. Students can offer rewards to those who contribute to their tuition funds. For instance, Hickey, 28, says an art school student could offer a painting or art lessons in exchange for much-needed financial support. The brothers are seeking an initial crop of five students to test the concept. They hope to promote the site across Canada within a year.
How Canadian university students are paying their bills
The typical Canadian university student spends four years blowing borrowed money on clothes, music and liquor, right? That may be the stereotype, but it’s not the reality. The Canadian University Survey Consortium’s 2012 study of more than 15,000 graduating students shows that six in 10 are working, the vast majority pay off their credit card bills each month and only one-third have more than $20,000 in debt. Here’s an infographic that shows how students are paying their bills.
What I learned from Princess host Gail Vaz-Oxlade
After years of watching her TV shows Til Debt Do Us Part and Princess, I got the chance to listen in person to Gail Vaz-Oxlade discuss her Money Rules earlier this week on campus. Moneyaftergraduation.com and the University of Alberta’s Student Financial Aide Office hosted the free event. After an hour and a half, I felt less afraid of the sometimes ruthless world of money. I’d like to share five rules that stood out for me.
Rule 1: “Don’t pay the bullsh*t.”
By “bullsh*t,” Vaz-Oxlade means your monthly minimum credit card payments. Every credit card owner should pay more than the minimum. Those seemingly low payments required each month are meant to keep you in credit card debt for as long as possible, so you pay more interest overall. Oh, and the same go for student loans. “Aggressively pay down your debt”, says Vaz-Oxlade. She says students in debt should only worry about savings after they’ve paid off their loans.
Rule 2: Take on no more than one year of your future net income in student debt.
Vaz-Oxlade says this is a well-known rule of thumb, but I’d never heard it. Apparently every student should try to graduate with less student debt than their projected net income in their desired job. So if your career starts out paying $30,000-a-year after taxes, you shouldn’t have more student debt than that. (Law students, for example, can borrow more because they will make more.) Otherwise it eats up too much of your income, “and you won’t have a life for a very long time.”