Parental Contribution

Parents on Salaried Income

Estimated expected parental contribution

Parents are expected to help pay for your education if:

• you are single and have been out of high school for four years or less

The amount your parents are expected to contribute depends on:

• their resources
• the size of your family
• the number of children in your family who are attending post-secondary studies.  (The expected contribution amount is divided by the number of children in post-secondary studies.)

Parents are not expected to help pay for your education if:

• during the four years since you have been out of high school, you have been working or available to work (full-time) for two years
  

Parental Contribution Calculator

The Canada Student Loans Program website, canlearn.ca, offers a parental contribution calculator to help estimate the amount of money parents should contribute to their children's education. The estimates are based on assessment tables for the 2009-2010 academic year.

Self-employed Parents

For parents who are self-employed, a contribution amount will be assessed if the net worth of the business or farm exceeds $250,000.

The adjusted income for your parents’ contribution to your post-secondary funding equals:

Base income plus 5% of net worth over $250,000

Base income: parents’ total income minus Employment Insurance, Canada Pension Plan and income tax (as reported on line 150 of parents’ income tax returns)

Net worth: value of total business assets minus total liabilities related to assets

Business assets: land, buildings, accounts receivable, equipment, etc

Liabilities: accounts payable, notes payable, mortgages payable, etc. related to assets

Not to be included as net worth: personal assets including residence, savings, RRSPs, pension funds, etc

Parents Experiencing Exceptional Financial Hardship

If your parents are experiencing exceptional financial hardship and cannot provide the expected parental contribution, they should write a letter of explanation detailing their circumstances.  This letter should be attached to your funding application. Exceptional circumstances include events such as:  loss of income due to layoff or medical emergency, reduced income due to farming conditions, loss of home or business by fire and essential home repairs or renovations.