Canadian undergraduate students received a grant under a pilot program that enabled their participation in out-of-country program or experiences such as summer exchanges, internships, co-op placements, research placements, or faculty-led group study programs, which where organized and academically recognized by their Canadian university or college. Eligible costs covered by the grants included tuition fees, living expenses, dependent care, health insurance, transportation and accommodation. How was the scholarship exemption to be computed for those students who had status of being both full-time (FT) (i.e., generally, not less than 10 hours per week on courses in a “qualifying educational program” (QEP)) and part-time (PT) (i.e., not FT but with at least 12 hours per month on the courses in a “specified educational program” (SEP)) in a year?
As to the significance of the distinction, CRA noted that the scholarship exemption of a PT “qualifying student” was generally limited to the cost of materials related to the program, the fees paid to the “designated educational institution” (DEI) in respect of the program, and the basic scholarship exemption of $500) – whereas the full amount of the grant received by an FT qualifying student would be eligible for the scholarship exemption under s. 56(3)(a) “to the extent that it is reasonable to conclude that the award is intended to support the individual’s enrolment in the program.”
Turning to the particular question, CRA stated:
[W]e would consider a student to have followed two different programs if the required number of hours on courses or work in a particular program (e.g., an undergraduate program) were to change from one semester / term to the next. For example, if an individual is normally enrolled as a FT student in a four-year undergraduate degree program, yet changes their enrollment to PT in a single term to only enrol in a three-week study-abroad program (other than a co-op placement / internship) during a particular month (whether in the summer or otherwise), we are likely to consider the student to have followed both a QEP and a SEP. Assuming that the SEP meets the 12-hour requirement, the student in this case will likely be considered a PT qualifying student in respect of the study-abroad program. Therefore, if the student in this scenario were to receive a … grant to cover the duration of the study-abroad program, the scholarship exemption would be calculated on the basis that the student was a PT qualifying student in the particular month. As such, the total scholarship exemption would consist of the cost of materials related to the study-abroad program, the fees paid to a DEI in respect of that program, and the basic scholarship exemption.
On the other hand, if the student in the scenario above were to take other courses alongside the PT study-abroad program to bring their status to FT, the student would likely be eligible for the full scholarship exemption.