New tool helps streamline federal grant applications

Rising tuition, climbing living costs, and shrinking grant pools have left post-secondary students across Canada facing unprecedented financial strain. At the University of Alberta, program tuition hikes, such as the 44 per cent increase to the undergraduate pharmacy program in 2022, have forced many students to take gap years, slow down their course loads, or accept heavy debt upon graduation.

Yet every year, over 500,000 eligible Canadians miss out on the federal Canada Learning Bond, a grant offering up to $2,000 for post-secondary education.

Zach Prusko, a U of A finance alumnus and current Masters of Business Administration candidate, wants to change that. Prusko is the CEO and founder of Hi Finance, a startup born out of the university entrepreneurship hub, eHUB, in HUB Mall. His goal is simple: automate and streamline the process of getting government grant money directly into students’ hands.

Prusko started in traditional banking. He worked on tech projects at RBC and Scotiabank after completing his undergraduate degree at the U of A. While working in financial planning, he noticed a persistent gap in how big financial institutions treat student grant programs like the Canada Learning Bond. Banks often don’t streamline or support the application process for these funds.

The main reason banks fail to prioritize facilitating access to these smaller grant programs is just because can’t make money from them, Prusko explained.

To claim the bond as an adult student, an individual must set up a Registered Education Savings Plan (RESP). However, because adult applicants usually immediately withdraw those grant funds to pay for tuition, banks cannot earn long-term investment fees.

“If you open up an RESP, get $1,000 to $2,000 in the Canada Learning Bond, and withdraw it immediately for tuition, the bank is going to make literally a few dollars,” Prusko said. “The bank is not interested in helping somebody because it’s so much work, time, and effort for no benefit to them.”

Breaking down misconceptions

Outside of systemic banking disincentives, student misconceptions remain a major barrier. According to Prusko, the most common hurdle is the belief among students that they simply will not qualify for government aid.

“A lot of people just assume, ‘I’m doing fine, I’m not broke, I’m from a regular background, I just don’t think I’ll qualify for anything,”‘ Prusko said.

Another hurdle is the bureaucratic process. Government grant applications are notoriously long, leading many applicants to abandon them halfway through. Furthermore, the bond carries a strict deadline: students must claim the grant before turning 21.

Hi Finance addresses this by automating federal loan and grant applications, a first in Canada. Using a short two minute survey on their platform, students can quickly determine eligibility. Through a partnership with financial service provider Embark, Hi Finance facilitates a process where adult students serve as both the account holder and beneficiary of their RESP.

Checking eligibility through Hi Finance is free. For students who choose to use Hi Finance’s automated service, there are no upfront costs. The platform charges a 15 per cent fee taken only after grant money is successfully secured and paid out.

“This is the first time ever in Canada that there is a way to automatically apply for federal loans and grants,” Prusko said. “We’re providing a different, easier, faster solution.”