Higher Education in Ontario - Funding

Funding

The public funding of higher education in Ontario primarily relies on cooperation between the government of Canada and the government of Ontario. Public funding of higher education involves direct public funding of institutions for instruction, investment, and research combined with funding of students. To fund public higher education institutions, the government of Ontario can use funds from the Canada Health Transfer, Equalization and Territorial Formula Financing programs for financing instruction and investment. Funding of research is supported by the Canada Foundation for Innovation, Canada Research Chairs program, the Indirect Costs of Research program, and through Networks of Centres of Excellence. Both governments of Canada and Ontario provide funding and support for post-secondary students.

• Parents receive funding from the government of Canada to save money for the post-secondary education of their children. The Registered Education Savings Plan (RESP) is a financial instrument that acts as a tax shelter. The Canada Education Savings Grant provides funds to eligible parents to deposit into a RESP account. The Canada Learning Bond targets assistance to parents less likely to have funds available to contribute to a RESP account.
• Students may receive funding through Canadian student loans from the Canada-Ontario Integrated Student Loan program, grants or targeted bursaries available through the Ontario Student Assistance Program, or funds available from the Canada Millennium Scholarship Foundation. In addition, students with earnings who have previously contributed to a Canadian retirement tax shelter (i.e., the Registered Retirement Savings Plan) may make tax-free withdrawals under the Canadian tax system using the Lifelong Learning Plan as long as the funds are repaid within a ten-year period. Graduate students may also be eligible for funding through the Ontario Graduate Scholarship program or by applying for funding through the Social Sciences and Humanities Research Council.