Parental income information is required from all financial aid applicants.
Parental income is defined as the combined gross income (line 15000 or total gross income of the most recent Canadian Income Tax Return (NOA) or equivalent income tax returns from other jurisdictions) for both parents/guardians. Social assistance and retirement income will be considered as eligible parental income.
First time applicants to the Financial Aid program are required to provide the previous three (3) years of their parents’ income tax notices of assessment. The average of these three (3) year’s incomes for both parents/guardians will be considered while the student is at the law school.
Student Socio-Economic Index Calculations
For one-household families (parents/guardians are living in one household)
Families making less than $85,574 per family will be exempt from the calculations of the Socio-Economic Index. Families will have $4,000 deducted from their average household income for each dependent child under the age of 18. In rare and exceptional circumstances, other dependents may be considered if sufficient documentation is provided to the Financial Aid Committee.
The student socio-economic index rate is calculated using the average family income less ($4,000 times number of children under 18 living at home), this is the eligible family income
- For eligible family incomes of $85,574 or less, the economic index is $0
- For eligible family incomes between $207,871 and $85,574, the economic index is calculated as the difference between the eligible income and $85,574 times 15%
- For eligible family income over $207,871, the economic index is calculated as the difference between the eligible income and $207,871 times 25% PLUS $18,345
Example 1- Parents have a combined income of $90,000 and no children under 18 at home. The formula used to calculate student economic index is ($90,000-$85,574)*0.15=$664
Example 2 - Parents have a combined income of 290,000 and two children under 18 at home. The formula used to calculate student economic index is (($290,000-($4,000*2)-$207,871)*.25)+18,345=$36,877
For two-household families (i.e. students with separated or divorced parents)
Families making less than $125,635 per family will be exempt from the calculations of the Socio-Economic Index. Families will have $4,000 deducted from their average household income for each dependent child under the age of 18. In rare and exceptional circumstances, other dependents may be considered if sufficient documentation is provided to the Financial Aid Committee.
The student socio-economic index rate is calculated using the average family income less ($4,000 times number of children under 18 living at home), this is the eligible family income
- For eligible family incomes of $125,635 or less, the economic index is $0
- For eligible family incomes between $207,871 and $125,635 the economic index is calculated as the difference between the eligible income and $125,635 times 15%
- For eligible family income over $207,871, the economic index is calculated as the difference between the eligible income and $207,871 times 25% PLUS $12,335
Example 1- Parents have a combined income of $150,000 and no children under 18 at home. The formula used to calculate student economic index is ($150,000-$125,635)*0.15=$3,655
Example 2 - Parents have a combined income of 290,000 and two children under 18 at home. The formula used to calculate student economic index is (($290,000-($4,000*2)-$207,871)*.25)+12,335=$30,867
Age Inclusion Index
In recognition that older students are likely to be more independent, we use the following age inclusion index to adjust expected parental contribution:
| Age of Student | %of Student Socio-economic Index |
| Under 30 | 100% |
| 30-34 | 75% |
| 35-39 | 50% |
| 40 and above | 25% |
Example 1 - Parents have a combined income of $150,000, live in the same household and no children under 18 at home. The applicant is 32 years old. The formula used to calculate student economic index is ($150,000-$85,574)*0.15*0.75=$7,248
Special Provision for Material Decreases in Parental Income During Law School
If a student’s parental income falls by 25% or more from the average of the three notices of assessment (“NOAs”) submitted prior to beginning law school, the financial aid program will make an adjustment to their student socio-economic index with the provision of appropriate documentation.
To qualify for a downward adjustment to the students’ socio-economic index, a student must provide all NOAs for the period after they begin law school (in addition to the NOAs that would have previously been submitted for the three years prior to beginning law school). The adjusted parental income will reflect the average of all the NOAs.
Example
Let us suppose a student began law school in the fall of 2022 and submitted parental NOAs for the 2019, 2020 and 2021 taxation years. The default presumptive parental income for them during law school will be the average of those three (3) NOAs. The special provision for material decreases in parental income during law school would work as follows.
- If parental income for the 2022 taxation year dropped by more than 25% from the 2019-2021 NOA average and the student would like this drop to be considered for fall 2023 financial aid, they would submit their parents’ 2022 taxation year NOAs. The student’s socio-economic index for their fall 2023 financial aid calculation will now be the average of the NOAs for the four (4) years from 2019-2022. Note that if the student makes use of this option, they will be required to provide additional NOAs (e.g. 2023 taxation year) when they apply for financial aid in future years of the program, at which point parental income will be averaged across all available years (e.g., average of 2019-2023 taxation years).
- Now suppose the student does not submit an NOA for the 2022 year. If parental income for the 2023 year drops by more than 25% against the 2019-2021 NOA average and they would like this drop to be considered for their fall 2024 financial aid calculation, they would need to submit NOAs for their parents for both the 2022 and 2023 taxation years. The student’s socio-economic index for their fall 2024 financial aid calculation will now be the average of the NOAs for the five (5) years from 2019-2023.
