How Financial Need is Assessed

It is possible that your educational and living costs may be higher than the maximum assistance available through MSAP. As a result, you may need to look for other sources of money to help fund your education.

Need is determined according to program criteria and policies. To calculate the assistance you will receive, use the following formula:

NEED = ALLOWABLE COSTS – EXPECTED RESOURCES

Allowable Costs – Costs allowed are direct educational costs which include tuition, compulsory fees, books and supplies, and living costs according to allowance levels established by the Canada Student Loans Program. Costs for repayment of consumer debts are not allowed when deciding your need. The following are the amounts allowed to cover living costs in the determination of need:

* Living allowances are based on a moderate standard of living (single students are expected to share accommodations when living away from home) and may vary according to the province in which you reside. Manitoba students studying outside Canada receive the Manitoba allowance levels. You are expected to live within the established allowance levels.

Exemptions - Students are allowed an income exemption of $50 per week. Additional income is assessed at $100%. An $1,800 exemption is allowed on merit-based scholarships per loan year. Contact Student Aid for more information on exemptions allowed in the assessment of need.

Pre-study Contribution – You are expected to make a "pre-study period" contribution by earning and saving money for a time period before your studies start (up to four months). Your pre-study contribution is based on the amount of income you earned, less taxes and a living allowance.

Expected Contributions – You and your spouse or parents, if applicable, are expected to contribute towards your educational costs. Both income (for yourself, spouse and/or parents) and assets (for you and your spouse) are included in the assessment of need. Income includes employment earnings, scholarships, Employment Insurance, etc. Assets considered include monies in bank accounts, bonds, and investment certificates. RRSPs and vehicles are considered, but there are some exemptions.

Note: Effective January 1, 1999, students may make withdrawals on RRSPs without paying tax if used for educational purposes. Contact your banking or financial institution for further details. If cashed, the RRSP proceeds will be used as an asset in your assessment of need. The maximum RRSP withdrawal without penalty is $10,000. For further details, please check with the Canada Customs and Revenue Agency.

Expected Parental Contributions - Part of the application form deals with parental contributions. If you are a "dependent" student, your parents are expected to make a contribution toward the cost of your education. This year the amount of contribution expected from parents has been reduced, particularly for middle-income families.

To get an idea of what your parents' weekly contribution might be, follow these steps below.

Step 1. Determine your family size

Step 2. Determine your parents' combined annual income (Take combined income and subtract income taxes paid and EI and CPP contributions.)

Step 3. Subtract your cost of living (Chart 1) from the amount at Step 2. This is your parents' discretionary income.

Step 4. See Chart 2 to determine your parents' weekly expected contribution.

Step 5. Multiply the result by the number of weeks in your program of study. This result is your parents' expected contribution.

Example:

Step 1: Family size = 3

Step 2: Parents' total gross income = $60,000. Combined parents' income after taxes, EI and CPP = $39,050

Step 3: Combined income minus a moderate standard of living for your family size is $39,050 - $35,467 = $3.593. This is your parents' discretionary income.

Step 4: See Chart 2 and determine the weekly contribution amount for the discretionary income in Step 3. This weekly cost is $17 per week.

Step 5: Multiply this amount by the number of weeks in your program = $17 x 34 = $578.00

Note: If there is more than one dependent student taking post-secondary classes in the study period, divide the parental contribution by the number of dependent students.

In this example, the parents are expected to contribute $578.00 for this year's study.

Payment of Funds

How Funds are Paid

Once your application is processed, a Notice of Assistance Letter will be mailed to you. It will show the amount and type of your awards, when and where they will be available, how your awards were calculated, reasons for any increases or decreases to your awards and reasons why you may be ineligible for assistance. If you are entitled to a Canada Student Loan or Manitoba Student Loan, your Notice of Assistance letter will advise when and where the loan documents will be available.

Loans cannot be negotiated until the first day of classes. If you are entitled to a Prince of Wales/Princess Anne bursary, or a Canada Study Grant, a cheque will be issued after confirmation of enrollment with your school. If you are attending a school outside Manitoba, an Out of Province Program Information Form will be sent directly to your school. Your school must confirm your program information before your awards can be released.

Check your Notice of Assistance and any inserts for information on participating lenders.

When Funds are Paid

Important Note: if documentation has been requested on the Notice of Assistance letter or under separate cover, and has not been provided within the time frames specified, your assistance will be delayed.

• Canada and Manitoba Student Loans will be issued in two disbursements (installments). The Canada Student Loan is issued at the beginning of your study period (cannot be cashed until the first day of classes) and Manitoba Student Loan after the mid-point of your program. An authorized official from your school must sign the loan document to verify that you are enrolled as a full-time student. You must then take your loan document to your service provider to be negotiated. See www.canlearn.ca for further details about Canada Student Loans. Instructions for negotiating your Manitoba Student Loans will be provided with your Notice of Assistance letter.
• Canada Study Grants for Full-time Students with Dependants will be disbursed as indicated on the Notice of Assistance. Generally, this award is payable at the three-quarters point of your program of studies and only after the full Canada Student Loan and Manitoba Student Loan have been disbursed.
• Prince of Wales/Princess Anne awards will be issued in one disbursement at the midpoint of your program of studies.
• Canada Study Grants for High-Need Part-time Students will be issued in one disbursement at the start of your study period.
• Canada Study Grants for Female Doctoral Students will be issued in one disbursement at the start of your study period.
• Canada Study Grants for the Disabled will be issued in one or multiple disbursements as indicated on the Notice of Assistance.
• Canada Study Grants for Part-time Students with Dependants will be issued in one disbursement at the midpoint of your program of studies.

(June 2006)