Another alternative is to contract a student loan from a bank and put that money aside for investment (in a RRSP for instance) if the student doesn't need it. Once on the work force, you'll have to reimburse the bank if the income is above a given amount. The interesting part it that meanwhile, the interest on your loan can be deducted in your annual tax report. Therefore, there is no rush to reimburse the loan since as time goes by it can be used (through the annual interest charged by the bank) to reduce your taxes every year.