Students

Finish school and start to repay OSAP

  • Last Updated:
  • Oct 31st, 2017 9:09 pm
[OP]
Newbie
Oct 14, 2017
6 posts

Finish school and start to repay OSAP

Hi guys!

I am going to enter the repayment in coming November and I currently in grace period. I just got a letter from NSLSC about repayment agreement which I need to fill it out and mail back to NSLSC.
But I have some questions about paying back the repayments, could anyone kindly help? I tried to call NSLSC today but I just realized they close on weekend. I have full time work during weekday so it is hard to reach them during that time.

Here are my situation:
Total loan: around $30,000
Minimum monthly payment: around $300
Terms: 114 months

I don't have enough money to pay lump sum and I will not raise my minimum payment, but if I have extra money during a month such as $100, I would like to put in to repayment. I got an answer from NSLSC through email, they said I can pay extra anytime but this answer is not specific enough for me.
So if I pay extra $100 through online banking, will this money go directly to principle without deduction from interest? Do I need to call NSLSC before or after I make extra payment?
When this extra money reduce my principle, how does it affect my amortization period and monthly payment?
10 replies
Jr. Member
User avatar
Apr 25, 2008
136 posts
6 upvotes
Scarborough
imo if youre straight outta school and not making any real money yet i suggest going on repayment assistance or at least lower the minimum payment. but def call nslsc even if you have to do it on lunch.
Newbie
Feb 14, 2011
69 posts
19 upvotes
Toronto
if I pay extra $100 through online banking, will this money go directly to principle without deduction from interest?
If you make $100 payment, it will first go to cover interest accumulated at that point in time and then whatever is left will go towards the principle. In this case at the end of the month a greater portion of $300 payment will go towards the principle, since $100 previously already covered some if not all the interest, that $300 don't have to cover.
Do I need to call NSLSC before or after I make extra payment?
No, everything is done automatically. You can setup personal payee with your online banking system and do it from there anytime, multiple times, 24/7. Takes 2-3 business days for payment to show up in your NSLSC account.
When this extra money reduce my principle, how does it affect my amortization period and monthly payment?
Amortization period will stay the same, as it was calculated at the time you entered repayment and it will not change. By making extra payments you will end up repaying your loan faster, well before amortization period is over.
Extra payments do not affect monthly payments.
[OP]
Newbie
Oct 14, 2017
6 posts
I graduated in June and I just got a full time job in September and I plan to pay this loan off before 30 years old...I managed to call NSLSC at 7:50 pm (they closes at 8 pm) and the woman who picked up my phone is kinda rude, anyway I got her answer my questions. But I will keep Repayment Assistance in my mind if anything happen, thank you for your reply :)
[OP]
Newbie
Oct 14, 2017
6 posts
m1024 wrote:
Oct 17th, 2017 7:30 pm
If you make $100 payment, it will first go to cover interest accumulated at that point in time and then whatever is left will go towards the principle. In this case at the end of the month a greater portion of $300 payment will go towards the principle, since $100 previously already covered some if not all the interest, that $300 don't have to cover.

No, everything is done automatically. You can setup personal payee with your online banking system and do it from there anytime, multiple times, 24/7. Takes 2-3 business days for payment to show up in your NSLSC account.

Amortization period will stay the same, as it was calculated at the time you entered repayment and it will not change. By making extra payments you will end up repaying your loan faster, well before amortization period is over.
Extra payments do not affect monthly payments.
omg your answer is so clear! I now understand how this work now, thank you so so much!
Sr. Member
Feb 16, 2013
521 posts
567 upvotes
Toronto
redroses wrote:
Oct 17th, 2017 4:27 pm
imo if youre straight outta school and not making any real money yet i suggest going on repayment assistance or at least lower the minimum payment. but def call nslsc even if you have to do it on lunch.
Debt repayment assistance only covers your interest for that month.
It does nothing for your principal.

Pay every penny you got into your highest % debts.
Then move to OSAP, and pay every single spare penny into it.
There is no reason to nurse debts.
Pay them off and stop giving your creditors free money.

When I was paying it off it started at 3 bucks a day in interest.
Then 2.
Then 25 cents.
Then nothing.
It felt great not owing anyone any money.
[OP]
Newbie
Oct 14, 2017
6 posts
cowbunpants wrote:
Oct 19th, 2017 10:57 pm
Debt repayment assistance only covers your interest for that month.
It does nothing for your principal.

Pay every penny you got into your highest % debts.
Then move to OSAP, and pay every single spare penny into it.
There is no reason to nurse debts.
Pay them off and stop giving your creditors free money.

When I was paying it off it started at 3 bucks a day in interest.
Then 2.
Then 25 cents.
Then nothing.
It felt great not owing anyone any money.
Yes that's what I think! I don't want to owe any anyone any money!
Member
Mar 4, 2008
213 posts
20 upvotes
BC
I just had to restart paying my student loan too. I used the 0% interest for 12 months MBNA mastercard balanace transfer. I took out money that I would be able to repay in the 12 month term so I could get the interest amount a lot lower.

You may want to check out this thread: official-rfd-mbna-0-12-months-thread-813854/

Or go on the repayment assistance if you are not making a lot of money.
Newbie
Jun 10, 2013
67 posts
20 upvotes
Murder that loan as quickly as possible. I'm glad I did (I saved from coop and took it out as soon as I graduated). I remember them being sneaky, saying I didn't have to make the first payment until 6 months, but the interest would accrue during that period. Just make sure that when you work, create a 3-6 month reserve cushion then everything goes to attacking that debt (money going into the student loan goes into the void - it's not like revolving debt). If you know how to invest and you have a stable job you can start but I prefer getting rid of debt first. Once you're debt free then you'll focus on being job-free (saving 25 times your expenses so you no longer need a job). Good luck!

I read awhile back that median time to repay loans was 14 years...don't let that be you. It'll really slow down your life to keep these kind of debts, but on the plus side, it'll train you to be frugal (assuming you make decent coin).
[OP]
Newbie
Oct 14, 2017
6 posts
JimboD wrote:
Oct 30th, 2017 2:21 am
I just had to restart paying my student loan too. I used the 0% interest for 12 months MBNA mastercard balanace transfer. I took out money that I would be able to repay in the 12 month term so I could get the interest amount a lot lower.

You may want to check out this thread: http://forums.redflagdeals.com/official ... ad-813854/

Or go on the repayment assistance if you are not making a lot of money.
OMG, this is so helpful, thanks!
[OP]
Newbie
Oct 14, 2017
6 posts
Hobotrader wrote:
Oct 31st, 2017 12:31 am
Murder that loan as quickly as possible. I'm glad I did (I saved from coop and took it out as soon as I graduated). I remember them being sneaky, saying I didn't have to make the first payment until 6 months, but the interest would accrue during that period. Just make sure that when you work, create a 3-6 month reserve cushion then everything goes to attacking that debt (money going into the student loan goes into the void - it's not like revolving debt). If you know how to invest and you have a stable job you can start but I prefer getting rid of debt first. Once you're debt free then you'll focus on being job-free (saving 25 times your expenses so you no longer need a job). Good luck!

I read awhile back that median time to repay loans was 14 years...don't let that be you. It'll really slow down your life to keep these kind of debts, but on the plus side, it'll train you to be frugal (assuming you make decent coin).
yes yes the war starts now! I don't have any other loan or mortgage. Student Loan is the only thing I will focus on for my next 2~3 years!

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