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 calculated using a simple formula:
Allowable Expenses - 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 of 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 earn 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.
Tip: 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 before returning to school. For example:
- with 2 months between periods of study, your expected contribution = $ 720
- with 3 months between periods of study, your expected contribution = $1,080
- with 4 months between periods of study, your expected contribution = $1,350
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NOTE: If you and your spouse/partner are both attending school full-time, each of you is expected to meet the minimum expected contribution amount.
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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. Scholarships/Bursaries/Fellowships
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- Scholarships, bursaries, and fellowships do not affect your eligibility for Alberta student funding but are used to calculate your eligibility for federal funding (an $1,800 exemption is applied)
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4. Assistantships
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- An $800 per month exemption will automatically be calculated
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5. Stipends
6. Government agency funding
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- Employment Insurance (EI Benefits)
- Assured Income for the Severely Handicapped (AISH)
- Worker's Compensation Benefits
- Indian and Northern Affairs/Band Funds
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7. Other Income
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- Include children's benefits, pensions, rental property income, business income
- Do not include any payments you receive from government programs, such as:
- income tax refunds
- GST credits
- child benefits (Child Tax Benefit, Disabled Contributor's Child Benefit, Universal Child Care Benefit)
- refundable tax credits
- Registered Disability Savings Plan
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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, your RRSP exemption will be based on your spouse's/partner's completion date
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9. Assets (including spouse/partner assets)
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- Includes term deposits, bonds, stocks, GICs, mutual funds, etc
- Includes RRSPs purchased during post-secondary studies
- Includes the full value of all assets
- You are expected to use your assets to help pay for your education costs. If the value of your assets is $2,000 or less, the actual value will be used to determine your expected contribution amount. If the value of your assets is greater than $2,000, the following formula is used:
$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 is used:
a. If the total combined assets are $4,000 or less:
Total combined assets
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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)
- If your spouse/partner is employed, an $800 per month exemption will automatically be calculated
- If your spouse/partner is unemployed, the spousal/partner contribution will be exempted for the following reasons:
- at home with children aged two years or younger
- documented inability to find employment
- documented medical reasons
- full-time student
- Tip: If both you and your spouse/partner are attending full-time studies, you should both complete a separate application form.
11. Parental contribution
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- Your parents may be expected to contribute if you are a single student, unless you have been out of high school four years or more or you have been available to work full-time for two (2) or more years
- If more than one child in your family is attending a post-secondary institution, the amount your parents are expected to contribute is divided by the number of children attending
- Your parents may have saved money for you in a Registered Education Savings Plan (RESP) and Canada Scholarship Trust Fund
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12. Requesting an Amount
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- It is in your best interest to minimize your total student loan debt because you are responsible to pay it back
- The amount of funding you actually need may be less than the amount you are eligible to receive
- If you want to request only a certain amount of funding, enter that amount on the application
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