As per Government of Canada direction, Indian Residential School (IRS) payments should not be included in the calculation of the income contribution for parents of dependent students, students or their spouses.
Who is eligible for this review?
The Government of Canada is finalizing program details. When supporting documentation requirements have been finalized, this manual will be updated.
Hepatitis C Compensation Payments should not be included in the calculation of income contributions, as per Government of Canada direction.
Who is eligible for this review:
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 to be 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. Pain and suffering awards held that are in excess of $100,000 (per incidence) and which are not considered income (as per criteria above), should be reported as assets on the student’s OSAP application form.
Who is eligible for this review?
Students and their spouse, if any, 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), or a Locked-in Retirement Income Fund (LRIF)) as an asset on the OSAP application. In addition, students and their spouse, if any, who gain special access to money invested in any of these funds prior to the usual withdrawal age (e.g., age 55) are not to report the amount withdrawn as income on the student’s OSAP application.
Once a student/spouse withdraws any money invested in these accounts as per the fund’s usual withdrawal age (e.g., 55), he or she must report the amount withdrawn as income in the applicable section of the student’s OSAP application.
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).
No documentation is required; student/spousal income will be verified through the Income Verification Process.
An adjustment to the pre-study period or study period income contribution may be made if a student and spouse make a joint election to split pension income on their current income tax returns.
Withdrawals by the student and/or spouse from an RDSP are exempt from income during the pre-study period and the study period.
Funding from a Registered Education Savings Plans (RESP) that a current or former Crown ward intends to use for the current period of study may be exempt from income if the RESP was set up for the individual by a Children’s Aid Society using federal Universal Child Care Benefit funding.
For income verification purposes the student is expected to report on his or her application, the amount of the RESP that will be withdrawn for the study period.
While students may wish to provide a Court Order as a form of verification of their current or former status as a Crown ward, these Orders sometimes contain personal information about third parties such as siblings or parents that the student does not have permission to disclose. Therefore, students should be encouraged to request a letter from their Children’s Aid Society. If a student is unable to obtain a letter from the Children’s Aid Society and chooses to provide a Court Order, FAAs may not make a copy of the Order and must, instead, make a notation on the students file that a Court Order was viewed and that it confirmed the student’s Crown ward status.