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Queen's University
 

OSAP Appeals

Estimated Income (Parents and Spouses)

Note: Eligibility for Canada Student Grants is based on previous year’s income only, as per federal requirements. There is no review of Canada Student Grant eligibility based on estimated current year income.

Estimated Income Reviews (General Requirements)

A student may request that his/her financial need be assessed using parental or spousal estimated current year income rather than actual previous year income when the estimated  income would be a better indicator of the family’s current financial situation because of non-recurring and major changes to the parental or spousal income.

Examples of non-recurring major changes to income can include, but are not limited to:

  • death of a parent or spouse;
  • separation or divorce of parents results in change in employment of custodial parent;
  • loss of full-time employment by parent or spouse;
  • loss of job and re-employment at lower rate of pay;
  • illness or accident;
  • retirement of parent or spouse;
  • events that resulted in a significant one-time increase to the previous year income, such as receipt of a severance package.

Documentation Required:

Note: A request to use estimated income cannot be considered if the circumstance is recurring or does not constitute a major change in parental/spousal income (i.e., overtime wages). 

Where a review based on estimated income is approved, the reassessment based on lower estimated income may also alter a student’s eligibility for Ontario Access Grants.  No special steps are required of the FAA for this to occur. The Ministry will estimate the net income and determine Ontario Access Grant eligibility.  However, as per federal requirements, eligibility for the Canada Student Grants is based on actual previous year income only. Therefore, Canada Student Grant eligibility will continue to be based on actual previous year income even if an overall reassessment is based on estimated current year income. 

Verification of Estimated Income

The ministry will verify the estimated current year income with Canada Revenue Agency (CRA) when the income tax information becomes available. The student’s current OSAP application will be reassessed at that time.  The student will be responsible for the repayment of any loan or grant overaward that may be generated from this reassessment.

Second Career or Ontario Skills Development Funding

Where the parent/spouse receives Second Career or Ontario Skills Development funding in the current year, the FAA may use the estimated current year’s parental/spousal taxable and non-taxable income in the OSAP assessment. Income from Second Career and/or Ontario Skills Development must be included in this estimate. 

 

Exempt Sources of Income

The following types of income should not be included in estimated parental or spousal income:

a) Income from federal support programs

Payments received through the following federal programs:

  • Universal Child Care Benefit,
  • Indian Residential School program, and 
  • Hepatitis C Compensation program.

b) Income from provincial support programs

Payments received through the following provincial programs:

  • Ontario Child Benefit,
  • Ontario Children Benefit Equivalent program, 
  • Rental Opportunity for Ontario Families (ROOF) program, and
  • Transplant Patient Expense Reimbursement program.

c)  Pain and suffering awards 

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 income. Any amount over $100,000 is considered income in the period it was received. If payments are made for different incidents, the payments related to each incident are exempt up to $100,000.

d) Locked-in retirement savings

Married students are not to report funds that are invested in a locked-in retirement savings account (i.e., Locked-in Retirement Account (LIRA), a Life Income Fund (LIF), and/or a Locked-in Retirement Income Fund (LRIF)) as an asset on the OSAP application.  In addition, students and their parents/spouse, if any, who gain special access to money invested in any of these accounts prior to the usual withdrawal age (e.g. age 55) are not to report the amount withdrawn on the student’s OSAP application as income. However, once a student/parent/spouse withdraws any money invested in these accounts as per the fund’s usual withdrawal age, he or she must report the amount withdrawn as income on the student’s OSAP application.

Note:  A locked-in retirement savings account is an account into which an individual's pension benefit is transferred when the individual terminates their membership in a registered pension plan. The money payable to the individual from this locked-in account can be used only to provide retirement income and is therefore locked-in until the individual reaches the age of 55. In Ontario, there are three types of locked-in accounts: Locked-in Retirement Accounts (LIRA), Life Income Funds (LIF), and Locked-in Retirement Income Funds (LRIF).

e) Treatment of split pension income

If the parent(s) or spouse of a student is splitting pension income, the amount to be reported on the LEI form should be an “estimate” of their total income, less any pension income that they believe they will be splitting with the other parent/student. The declared information will be verified upon the completion of the income verification process for the current year.

Kingston, Ontario, Canada. K7L 3N6. 613.533.2000