Personal Finance

How do i know if i qualify for osap?

  • Last Updated:
  • Feb 8th, 2011 12:32 am
Newbie
Feb 21, 2009
12 posts
Mississauga

How do i know if i qualify for osap?

Okay, my boyfriend been out of high school since June 2007 so that makes it 4 years. So, hes considered independent.

About him:
- He lives with his parents.
- He has his own car (probably worth around $3000)
- His insurance is $435/month
- Hes been on/off work, now he's working full-time again. Most of his pay goes to the insurance and his two credit cards.

The problem:
- His dad's income is kinda high probably around 60-80k
- His mom's income is around 20-30k
- His younger sister is going back home to study, shes leaving Canada in 2 months. So hes the only one left.
- His parents are gonna pay for his sister's education (tuition + living cost + books + allowance)

If he apply as an independent, they don't need his parent's income right? Are they gonna ask if he still lives with his parents? What if he says he moved out, does he need proof for that?

He really wants to go back to school, he's tired of working low paying jobs. I really can't help him right now coz I just graduated from college. And he doesn't want to ask his parents for help coz he knows they are also helping his older sister back home (she has two kids and studying medicine/doctor).

Please help! :(

*sorry if i'm in the wrong forum.. i don't know where to ask :(
11 replies
Deal Fanatic
Aug 14, 2007
6912 posts
348 upvotes
Toronto
Just a heads up, he owns a car and lives at one + his parents have a high salary according to them 99% chance he won't qualify, I didn't and I was working part time with my parents salary I didn't know but it wasn't 60k
[OP]
Newbie
Feb 21, 2009
12 posts
Mississauga
Thanks for the help.

What if he says his lives with his brother? His brother rented a basement apartment. Does he need proof of that? What are his other option besides osap? student line of credit? Which ones better osap vs student line of credit?
Deal Fanatic
User avatar
Sep 12, 2007
5805 posts
514 upvotes
Greely
If he's living at home, he's not independent.

A good start would be getting rid of the car. $435/month? That'll pay a good chunk of tuition.
Sr. Member
User avatar
Aug 31, 2006
851 posts
20 upvotes
I think you can apply without reporting your parents' income after four years post-High school. But your b/f will get less money from OSAP because he's living at home and not paying rent, as opposed to living on his own or on residence.
The car and the full time job will cause a decrease to his funding.
If he is still living rent-free at home and reports to OSAP that he is not, that is fraud.
Tell him to go to the OSAP website, there is a quiz on the site he can take, to see how much funding he'll get.
Deal Addict
Dec 28, 2008
1316 posts
121 upvotes
Toronto
If the car is less than $5000 in value according to the MTO then OSAP does not expect you to sell it to pay for school.

Therefore, it has no effect on your funding.
Deal Fanatic
User avatar
Jun 8, 2005
5625 posts
53 upvotes
Toronto
If he wants OSAP his best bet is to just apply and see what he gets. OSAP works kind of funny... I wasn't expecting to be eligible for anything based on my income+living situation but they gave me more than 3K... And thats when I applied the year my income was the highest. I regret not applying earlier when my income was even lower.

I also have a friend who owns a car, works part time (1-2 shifts a week) and lives at home and he qualified for more money that me. Granted, he has to commute quite a distance to get to school, but his situation wasn't unlike your BF's and he was definitely eligible.

One thing to know is that OSAP has a "price" for what it'll cost to live wherever you go to school. Going to University in downtown Toronto will obviously cost quite a bit more overall than going to college in Barrie.

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:) it took me 45 minutes to make this signature :(
Deal Fanatic
May 29, 2006
7113 posts
655 upvotes
400 bucks for insurance for a car, time for this kid to take transit.
Deal Addict
Aug 16, 2005
1840 posts
80 upvotes
BryceS wrote:
Feb 7th, 2011 10:36 am
If the car is less than $5000 in value according to the MTO then OSAP does not expect you to sell it to pay for school.

Therefore, it has no effect on your funding.

I had a friend back in school that had no significant assets except an old car that was worth around $1500, he got denied.

if your bf gets denied osap, it's not the end of world. there's always student line of credits from the bank.
Deal Addict
Dec 28, 2008
1316 posts
121 upvotes
Toronto
myapple wrote:
Feb 7th, 2011 12:57 pm
I had a friend back in school that had no significant assets except an old car that was worth around $1500, he got denied.

if your bf gets denied osap, it's not the end of world. there's always student line of credits from the bank.

OSAP uses the "Blue Book" estimate to determine the value of your vehicle. You’re allowed to own a vehicle valued at up to $5,000 without it affecting your OSAP funding. Any value above $5,000 will be considered as an asset in your OSAP assessment. If you are married or a sole support parent, any value above $10,000 will be considered an asset for the Ontario portion of your OSAP funding. Certain situations allow for an appeal of this amount.

https://osap.gov.on.ca/OSAPPortal/en/Po ... /index.htm
Newbie
Jan 28, 2011
52 posts
10 upvotes
Markham
Yeah that the problem with the car, OSAP uses the Blue Book value. I had a friend you had a piece of junk car and was denied osap because of it. He did win his appeal though.

As for living at home, it will make a difference in the amount of funding that will be available. He is independent but because he lives at home his funding will be reduced. OSAP looks at it like he ain't paying for food or some living expenses. Rent does not play a role in calculating the funding. If he were to live somewhere else rent free he would still probably qualify for the maximum amount (if he gets rid of the car).

The other factor is the amount of money he makes while in school. Sometimes its better to have nothing and make nothing as you can max out on all the grants and bursaries. I believe the max funding for a two semester year is around $12-15k. The max payback is $7500 for those two semesters.
[OP]
Newbie
Feb 21, 2009
12 posts
Mississauga
The thing is.. he just got a full time job last september - december, then got laid off.. and now he just started another full time job last week of january till now.. before that, he worked part time in a factory and it was a cash job/under the table.. so his income is very low, enough to pay for his insurance and credit cards.. yea, his insurance is $400+ T___T because hes a new driver, he started last august or september 2010, he was under his' brother's insurance and only paid $230, but he decided to get his own coz his already 21, i heard as you get older and more experience in driving, your insurance will go down.. and the insurance company told him, if hes going back to school, they gonna lower it a lil bit >_<

and his car is worth $3000, the only reason why he got a car thats worth 3k was because he got into an accident once, it wasn't his fault, so insurance company gave him money.. his car before was worth around $1000-1500 :s

Anyways, thanks everyone for the help! :)
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