Calculating Financial Need
You are expected to contribute to the cost of your own education. Your eligibility for student funding depends on your financial need. That need is based on a simple formula:
Allowable Expenses minus Resources = Financial assistance (loans and grants)
Allowable Expenses
Your allowable expenses include the following:
- tuition and mandatory fees
- books, supplies and instruments
- living costs
- child care (if required)
Report All Resources
You must report ALL your income on the student funding application, including income from:
- summer jobs
- part-time jobs
- investments
When you apply for funding, you may not know what your actual income will be. For example, you may not know how much you will make at a summer job, or how much your part-time earnings will be when you are in school. In these cases, give your best estimate. If you need to adjust your estimate later, you must inform Students Finance.
All funding applications are subject to audit. If you have provided false or misleading information or you have failed to provide requested information, your loans and grants may have to be repaid and you may face legal penalties.
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NOTE: Keep all of your documents related to your expenses and resources. |
Financial Resources
Your financial resources include the following:
1. Expected contribution
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Your expected financial contribution comes from:
- your savings prior to beginning your studies, and
- part-time earnings
The minimum expected contribution amount or your actual savings, whichever is greater, is used in the calculation of your award. (If you are a single parent, only your actual savings will be used in the calculation of your award.)
The amount you are expected to contribute depends on the number of months you are available to work prior to returning to school.
For example:
- with 2 months between periods of study = $ 720
- with 3 months between periods of study = $1,080
- with 4 months between periods of study = $1,350
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NOTE: If you and your spouse/partner are both attending school full-time, only half of your combined savings will be used in your calculation. It is still expected that each of you meet the minimum savings requirement.
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2. Part-time earnings
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- An $800 per month exemption will automatically be calculated
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3. Academic awards (scholarships)
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- If you are eligible for provincial funding, your scholarships are fully exempt
- If you are eligible for federal funding only, an $1,800 exemption is calculated
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4. Assistantships
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- An $800 per month exemption will automatically be calculated
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5. Bursaries and stipends
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- Enter the total amount from sources other than Alberta Students Finance
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6. Government agency funding
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- Includes Employment Insurance, AISH, Worker's Compensation, Indian and Northern Affairs funds
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7. Other Income
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- Includes children's benefits, pensions, rental property income
- Do not list your federal Child Tax Benefits, GST credits or income tax refund as a resource on your funding application
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8. RRSP's
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- A $2,000 exemption for each year out of high school will automatically be calculated
- RRSPs must have been purchased prior to the start of post-secondary studies
- If you and your spouse/partner are both attending school full-time, only half of your combined RRSPs will be used in your calculation
- If your spouse/partner has an earlier high school graduation date, you may request that your RRSP exemption be based on your spouse's/partner's graduation date. This request must be made in writing with an original paper application or on a Change of Circumstance form.
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9. Assets (including spouse/partner assets)
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- Includes term deposits, bonds, stocks, GICs, RRSPs, etc., purchased during post-secondary studies
- Includes assets such as recreation property, mutual funds, time share property, rental property, business assets, etc.
- The following formula determines the value of your assets used in your calculation for student funding:
$2,000 plus (total assets minus $2,000)
number of years remaining in your program
If you and your spouse/partner are both attending school full-time, the following formula will be used:
a. If the total combined assets are $4,000 or less:
Total combined assets
2
b. If the total combined assets exceed $4,000:
Total combined assets divided by 2
Number of years remaining in your program
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10. Spousal/Partner contribution (if applicable)
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- If you spouse/partner is employed, a $200 per month exemption will automatically be calculated
- If your spouse/partner is unemployed, the spousal/partner contribution will be exempt for the following reasons:
- at home with children aged two (2) years or younger
- documented inability to find employment
- documented medical reasons
- full-time student |
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NOTE: Married/common law students who are both attending school full-time must each enter all their costs, resources and the full value of all RRSPs and assets. The appropriate calculation will automatically be done for married/common law students.
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11. Parental contribution
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- This may be required from parents of single students unless you have been out of high school four years or more or you have been available to work full-time for 2 or more years
- If more than one student in the family is attending a post-secondary institution, parental contribution is divided by the number of children attending
- Sources of parental contribution may include a Registered Education Savings Plan (RESP) and Canada Scholarship Trust Fund
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12. Requested Need
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It is in your best interest to minimize your total student loan debt. You may find that the amount you actually need is less than the amount you are eligible for. To request only the loan money you require, enter that amount on the application. |
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