It's called VSO. Here's the link:
http://www.vsocan.org/
Hmm, I'm not sure what you mean. I don't see how that's negative, because you get out with a better learning experience, and I've been told that it's highly appreciated on the job market.
However, you do have to have a diploma of an accredited program when you graduate. For example, you'd graduate as a Software Engineer but you'd have had taken courses in Mechanical or Aerospace Engineering as an Independant Student. That would make you a better candidate for a job at the Space Agency let's say than someone who was a regular student. Same goes with managerial or administration courses.
Yeah, money is going to be an issue...it always is.