Let’s help pay off their student debt together

Investing in your child’s education is investing in their future. We want to help them as much as you do. 

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My child is in post-secondary

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My child is still in primary or secondary school

Students everywhere are drowning in debt

With over 30-billion dollars in national student debt, it’s safe to say this is a national crisis. But there is hope and it’s called payd. Our goal? To help students from coast to coast out of this horrific reality.

The loan

The average Canadian student loan is $30,000. Talk about starting off on the wrong foot.

The payment

The average payment is $327 per month. Try paying that with an entry-level wage.

The timeline

Most Canadians take 9-15 years to pay off their loan. All that for a few years of education.

What we can do

Paying off your loved one’s education in one lump sum is unrealistic. That’s why payd follows the basic principles of spare change and puts it to work. By linking your payd account to theirs, when you spend money, small amounts can be put away to pay off their student loan.

My child is in post-secondary

You want the best for your child, which is why they are in post-secondary. Unfortunately, the reality is that they will graduate with debt. The good news? payd is here to help you help them.  If you’re unable to contribute large sums to your child’s education, no problem, a little goes a long way. With our crowdsourcing tool, you can contribute your round-up savings, investment earnings, and cash-back rewards to your child’s account, helping to pay off their debt one purchase at a time. 

Sign up for early access to the payd app here.

My child is still in primary or secondary school

Whether your child is in preschool or about to graduate high school, it’s never too early or late to start planning for their post-secondary education. And now, you can use our cash-back, round-up savings, and investment tools to fund an RESP account for their education. Sound simple? It is. With payd’s tools you can fund their RESP every time you spend.

Sign up for early access to the payd app here.

FAQs

We suggest opening and contributing to a Registered Education Savings Plan (RESP). This is a dedicated savings plan to help you save for your child’s education after they graduate from high school. As long as the income stays in the RESP, it is not taxable. Click here for more on the basics of an RESP.

This is dependent on a number of factors including:

  • The average cost of tuition.
  • The textbooks and supplies they’ll need for their program.
  • Are they living at home with you or will they need to relocate?
  • Eligibility for grants and scholarships.
  • If they can contribute to their financial needs through work.

You might know the answer to some of these if your child is close to graduating high school. However, if they’re still a little one, these will be tough to gauge.

According to Statistics Canada, the average national cost of tuition for an undergraduate program for the 2019-2020 academic year was $6,463. As of 2020, the average Canadian student borrows $30,000. We recommend saving at least this amount to have tuition and supplies covered.

Yes, parents, grandparents, aunts, uncles, and even generous neighbours can help pay off student loans.

When your child applies for a student loan, they will open up an account with the National Student Loan Service Centre (NSLSC) and an account with their provincial loan provider (note: this is through the province of residence, not the province where their future university is located.)

Your child will be required to make payments, as agreed upon in their contract, six months after their program ends. However, interest on federal loans will be applied during this grace period.

Loan repayments can be made in lump sum or through pre-authorized monthly payments. Payments will be withdrawn from the bank account registered with the NSLSC.

There is no gift tax in Canada, meaning you can deposit any amount into their account, and it cannot be taxable as income or deductible as an expense. You also cannot claim tax on the interest you helped pay off. However, your child can carry forward their tax credits to you if applicable.

So, while you can’t directly pay off your child’s loans, you can transfer money into their bank account with no taxable risk.

We understand that a one-time lump sum payment isn’t feasible for most families. With our app, you can start small and contribute to your child’s loan repayments through our round-up savings, investment earnings, and cash-back rewards.