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Tell them the truth. The truth isn't always pleasant. You said that your parents were both financially and emotionally supportive. Chances are, they will remain this way when you tell them. But the longer you draw out a lie, the less likely it is that they will stay this way.
As Mal said, try to tell them that you DO have a plan for yourself. If my kid went up to me and said "hey dad! i failed all my courses, and i don't know WHAT the fuck to do at all, so I think i'll bum around at home," that wouldn't work out too well for him/her. But if you sit down with your parents, tell them that school isn't your thing, and list out things you can/want to do, i'm sure they'll understand.
As for depression, again, TELL them. Things won't get better if you don't get it treated. If you don't go back to UTSG next year, you won't be able to get the free therapy available there, but it's better to pay and feel better than to suffer and be rich.
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"Your name's Geek? Do you know the origin of the term? A geek is someone who bites the heads off chickens at a circus. I would never let you suck my dick with a name like Geek"
--Kevin Smith
This part just makes my posts easier to find
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