Apply for a Student Loan - Expected Contributions

You and your family are expected to contribute to the cost of your education, with contributions coming from both income and assets.

Pre-Study Period Contribution

The pre-study period is generally the four-month period immediately before the beginning of your study period. However, if you are a full-time student during that four-month period, the pre-study period is reduced to the time between the last date of your full-time studies and the beginning of your current study period.

You (and your spouse, if applicable) are expected to work during your pre-study period, and to save for your education. The minimum amount you are expected to save for your education is based on full-time employment (30.9 hours per week) at minimum wage less standard deductions for income tax, Canada Pension Plan, Employment Insurance and a Moderate Standard of Living.

The table below shows examples of pre-study period contributions based on earning minimum wage - if you earn more than minimum wage, your contribution will be more.

The minimum pre-study period contribution may be waived or reduced if you or your spouse are unable to find employment or are unable to work for medical reasons. Supporting documentation will be required to verify your situation.

Study Period Contribution

You are also expected to contribute during your study period if you have income. There are different contributions for different types of income.

The first $50 per week of study for net income from sources such as employment and child support is exempted from the assessment of eligibility. Income in excess of $50 per week of study is applied directly against your costs.

The first $1800 for scholarships and bursaries is also exempted from the assessment.

There is no exemption from income that is received specifically to attend training such as assistance from a government or private-sector agency, other third party, educational savings plan or scholarship trust fund.

Your are expected to contribute all of these funds to the cost of your education.

If you are married or in a common-law relationship, your spouse is expected to contribute 80 per cent of his or her income during your study period, after deductions for income tax, Canada Pension Plan and Employment Insurance. In Saskatchewan, the minimum contribution expected from your spouse is $780 per month. The minimum study period contribution from your spouse may be waived or reduced if your spouse cannot find employment or is unable to work for medical reasons. Supporting documentation will be required to verify your spouse's situation.

Parental Contribution

If you are a single dependent student, your parents are expected to contribute to your education, based on their discretionary income. Under program criteria, their discretionary income is their combined income in the last complete taxation year, after deductions for income tax, Canada Pension Plan, Employment Insurance and a moderate standard of living, based on family size. Parents, their dependent children (including the student applying for student assistance) and any wholly dependent persons living in the household are counted in determining family size.

The moderate standard of living used by the program is based on Statistics Canada's Family Expenditure Survey.

If your parents have two or more dependent children studying in full-time post-secondary education, the parental contribution is divided accordingly.

If you are a single dependent student, and your parents set up a Registered Education Savings Plan (RESP) or a scholarship trust fund for you, the parental contribution is the greater of the assessed parental contribution or the annual amount available to you from the RESP or trust fund.

If your parents income for the current year will be less than the income shown on line 150 of the previous year's income tax form, the parental contribution can be recalculated using this lower income. In this case a Reduced Income Statement must be completed and submitted by your parents to determine as close as possible what their gross income will be in the current taxation year.

Parental assets are not used in the contribution calculation.