Personal Finance

student loan's assessment of parents?

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  • Aug 24th, 2012 4:27 pm
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Sr. Member
Dec 20, 2009
511 posts
1120 upvotes
Vancouver

student loan's assessment of parents?

My brother just applied for student loans and only received a loan of about ~$1000 because they assessed my parents as able to pay for ~$9000 based on the application and income I'm guessing. My parents had agreed to help pay ~$2000 and that was written on the application. Does anyone know how Canada Student Loan assesses whether parents are even willing to pay for education? Don't a lot of parents not help pay for education at all, but if they have a high enough income, students aren't entitled to any loans? Anyone know how it works and if there's a way we can appeal the process?

My brother is in the process of looking for a part-time job to help pay for the expenses, but in the mean time, what options does he have? Open up a student LOC?
7 replies
Deal Addict
Nov 23, 2003
2222 posts
709 upvotes
If parents have high enough income, why don't they want to pay more for the kids education?
Deal Addict
Nov 11, 2004
3503 posts
615 upvotes
Ottawa
Singh_21 wrote: If parents have high enough income, why don't they want to pay more for the kids education?
??? Way to not help at all
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Jun 28, 2007
3866 posts
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The way its decided how much you might be eligible for in loans is (tuition + living expenses) - (expected parental contribution + savings + income + assets). Any amount left over is considered to be 'unmet need' and is eligible for student loans.

Go to this link http://tools.canlearn.ca/cslgs-scpse/cl ... en1-eng.do and try the estimator. Also pay very close attention to the definition of student - whether it be dependent or independent, etc. That's a big determination. Remember that this is only an estimate and the CSL program can do checks with the CRA and other agencies.
Sr. Member
Dec 12, 2009
828 posts
122 upvotes
Nova Scotia
sansera wrote: My brother just applied for student loans and only received a loan of about ~$1000 because they assessed my parents as able to pay for ~$9000 based on the application and income I'm guessing. My parents had agreed to help pay ~$2000 and that was written on the application. Does anyone know how Canada Student Loan assesses whether parents are even willing to pay for education? Don't a lot of parents not help pay for education at all, but if they have a high enough income, students aren't entitled to any loans? Anyone know how it works and if there's a way we can appeal the process?

My brother is in the process of looking for a part-time job to help pay for the expenses, but in the mean time, what options does he have? Open up a student LOC?
It's been around 15 years since I was applying to university, but at the time I had some friends whose parents were deemed as having money. They were denied both provincial and federal loans. It was tough. As far I know they didn't have much avenue to appeal, but much has could have changed since then.

Luckily I was able to get the full loan amounts for all 4 years of my degree. Are there any tech support numbers for the loan offices you could call?
Jr. Member
Dec 1, 2010
169 posts
23 upvotes
maybe the parents will co-sign for a sloc?
Sr. Member
Dec 20, 2009
511 posts
1120 upvotes
Vancouver
Singh_21 wrote: If parents have high enough income, why don't they want to pay more for the kids education?
Depending on the culture, some families don't believe in entirely supporting their children's educations and think they should endeavour to find ways to pay for it themselves.
gomyone wrote: The way its decided how much you might be eligible for in loans is (tuition + living expenses) - (expected parental contribution + savings + income + assets). Any amount left over is considered to be 'unmet need' and is eligible for student loans.

Go to this link http://tools.canlearn.ca/cslgs-scpse/cl ... en1-eng.do and try the estimator. Also pay very close attention to the definition of student - whether it be dependent or independent, etc. That's a big determination. Remember that this is only an estimate and the CSL program can do checks with the CRA and other agencies.
Thanks! The loan was assessed already. I used the calculator and it gave me $3000 while the actual CSL assessment was $9000. Sigh. My brother is a "dependent" student so does that mean CSL expects my parents to contribute more to his education versus if he was "independent"?
Dark0rb wrote: It's been around 15 years since I was applying to university, but at the time I had some friends whose parents were deemed as having money. They were denied both provincial and federal loans. It was tough. As far I know they didn't have much avenue to appeal, but much has could have changed since then.

Luckily I was able to get the full loan amounts for all 4 years of my degree. Are there any tech support numbers for the loan offices you could call?
My brother and my mom have tried calling various numbers but it doesn't sound like there's a lot of movement...
Sr. Member
Dec 20, 2009
511 posts
1120 upvotes
Vancouver
May end up doing that. However, AFAIK most SLOC still require interest payments during school while CSL payments don't start until AFTER school?

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