The following review may be considered to adjust the expected contribution from other assets.
The amount listed on the OSAP application for other assets should include other assets which can be directed toward educational costs for the current study period described below.
OSAP funds from the previous study period (i.e., academic year) are not to be included in the value of financial assets available for the current study period. Students who are in receipt of OSAP during the four months prior to the start of the current study period can request an adjustment if they have included OSAP funds relating to this study period.
If a student has incorrectly included the value of personal items such as primary residence, clothing, household items, and computers as other assets on their OSAP application or incorrectly reported RRSPs or RESPs as other assets, or reported commercial (non-residential) property that is owned by the student or the student’s spouse for the purpose of operating a business (e.g., self-employment tradesperson) the FAA may request clarification from the student. Note: commercial property does not include situations where a student or spouse owns real estate that is not their primarily residence and is operating it as an income property.
Once the Student Awards Office is satisfied with the student's clarification, the Student Awards Office may adjust the student's asset value.
Pain and suffering awards, including the general damages component of personal injury awards and WSIB Non-economic loss (NEL) awards, in amounts less than $100,000 are exempt from assets. Any amount over $100,000 is considered an asset. If payments are made for different incidents, the payments related to each incident are exempt up to $100,000.
The beneficiary of a life insurance policy with a payout value that is less than $100,000 will have that amount exempt from assets. Any amount over $100,000 is considered an asset.
The exemption only applies to one-time lump-sum payouts of a life insurance policy and does not apply towards any income-generating trust funds or insurance policies.
This exemption does not apply to the cash surrender value of a life insurance policy and is only to be used in the case of a policy payout to a beneficiary in the event of the policy holder’s death.
An in-trust account is an "informal trust" set up with a financial institution to invest funds for a minor (the “beneficiary”). A donor contributes to the plan for the beneficiary. The trustee (who can be different from the donor) manages the investments in the account and acts on behalf of the beneficiary until the beneficiary reaches the age of majority. The assets belong beneficially to the child and must generally be held for the child until the age of majority.
As outlined below, money held in or withdrawn from a student’s In-Trust Account may or may not be considered an asset or income when assessing the financial need.
Withdrawals from an In-Trust Account in the current study period that are made by the student or by the account’s trustee and transferred to the student must be reported as either pre-study or study period income on the OSAP application, depending on when the amount was withdrawn.
An In-Trust Account is considered an asset only if the student has access to the funds during the current study period but has chosen not to withdraw the money to help fund their postsecondary studies.
The value of the asset must reflect the amount of funding available to the student in the current year that has not been withdrawn. For example, if a Trust is valued at $5,000 but as per the conditions of the account the student can only access $1,000 per year, then only $1,000 can be considered an asset. As described above, any amount the student withdraws is considered income.
If ANY of the following is true, then an In-Trust Account is exempt from the student’s need assessment:
These savings are not considered assets.
Independent, married or sole support parents who are new immigrants may be required to use their savings that they brought with them to Canada to cover living costs during the pre-study period, if they are unable to find employment or if they are legally unable to work in Canada. Assets for these students may be reduced by an amount equal to the amount of OSAP living allowance for the pre-study period.
An adjustment to the expected contribution from Other Assets can be considered if:
The expected contribution from Other Assets of the student is adjusted as follows: