Off Topic Archive

Locked: Osap Loan overpayment

  • Last Updated:
  • Mar 14th, 2005 10:49 am
Tags:
None
Sr. Member
User avatar
Nov 29, 2003
753 posts
55 upvotes
japcutie wrote:Has anyone had experience with paying OSAP back before? I'm finishing my degree in April, do I have to send them a letter telling them that I'm done with school?

I heard that an extra step needs to be taken in order to receive intrest free for the first 6 months, if you don't, they'll start to charge you right off the bat. hmmm
i'm also graduating in april and i've contacted the national student loans service centre (NSLSC) about repaying my loans.

basically, the interest will be charged the day after the school term ends (interest will accrue on may 1st for me) but no payments need to be made until after the 6 month grace period. it would be best to send them a lump sum payment to pay against the principal of your consolidated loan in order to keep the interest minimal.

i recommend contacting NSLSC in regards to a payment schedule.

in addition, i highly recommend checking out their website, if not for more information than to check the status of your loan accounts.

http://www.canlearn.ca/nslsc/index.cfm?langnslsc=en
Deal Addict
User avatar
Aug 30, 2003
3152 posts
42 upvotes
thanks for the info pauline9_2000. i graduated in dec. and i didn't realize the interest was running already! i'm going to arrange a $6K lump payment when i call them tommorrow.

i'm not sure what the interest rate is? i'm wondering if i could get a better rate with another lender? anybody do this?

also, i havent found a job yet so i'm wondering if you can get grace period extensions....
Deal Addict
Feb 9, 2005
3039 posts
Ottawa
NSLC are the biggest bunch of incompetents that I have ever dealt with. When I finished school, one through the 6 months grace period or whatever, and then when it came time to pay them, it was a complete nightmare. I had to fax in my banking info and a void cheque to setup preauthorized withdrawals, which is fine. However, they somehow entered that information incorrectly into their computers, which caused me to go into arrears. I had set up a seperate account with my bank for these payments, as they were preauthorized... so they told me they'd be withdrawing a certain amount, then tried to withdraw double it, which costed me an NSF charge with my bank, and further arrears. I only mention the arrears since they submit those to the credit bureau (this is now on my file for a couple years..)

However, after about 4 months of this bs, once everything was actually setup, it works perfectly. Their website is well setup with your account info and payment information. It was just when I actually had to speak with anyone/set something up, that I had major issues.
Deal Fanatic
User avatar
Jan 25, 2004
6461 posts
3 upvotes
devious9191 wrote:NSLC are the biggest bunch of incompetents that I have ever dealt with. When I finished school, one through the 6 months grace period or whatever, and then when it came time to pay them, it was a complete nightmare. I had to fax in my banking info and a void cheque to setup preauthorized withdrawals, which is fine. However, they somehow entered that information incorrectly into their computers, which caused me to go into arrears. I had set up a seperate account with my bank for these payments, as they were preauthorized... so they told me they'd be withdrawing a certain amount, then tried to withdraw double it, which costed me an NSF charge with my bank, and further arrears. I only mention the arrears since they submit those to the credit bureau (this is now on my file for a couple years..)

However, after about 4 months of this bs, once everything was actually setup, it works perfectly. Their website is well setup with your account info and payment information. It was just when I actually had to speak with anyone/set something up, that I had major issues.
Don't get me started. I think they deliberately hire the most incompetent people available and then overpay them to deal with us, the "customer," when they screw around with us.

Last year, I had my student loan signed on August 29 (08/29/03). I was expecting my student loan a week after school started, but it never showed. I called after two weeks to find out what was going on, and they said that the form said that it was signed on September 29 (09/29/03), so they couldn't give me the money until then. I told them to re-check the form, which they did, and saw that it was in August. Told me it would be 5 business days.

Another week and a half goes by, and same story. I call, they say wait until 29th, I tell them to recheck form, they say five more business days. It happened *AGAIN*, at which point I lost it and asked to talk to a manager. My payment was going to be late, which meant the school was going to ding me. The manager figured out what happened & said that nobody updated the system, even after I called. He saw on the system that I had called three separate times to three different people, and *not one of them* updated the system. He also finessed the finance people so I didn't have to pay a late fine, but GOOD GRIEF!

BC student loan people are incompetents, too. I moved & sent them my new address (moved in August), but they had already sent a repayment notice to my old place (still in school). It was eventually sent back to them. They didn't call, they didn't send a letter to my new address (which they had, I discovered, after talking to them again), just started taking money out of my account in December. Took me two weeks to get that to stop.

I'm appreciative of the loans, b/c without them I wouldn't be able to school, but COME ON! Goddamn incompetent monkeys (and I mean that in the non-racial sense; all CSRs are trained monkeys, IMHO, and that includes when *I* was a CSR) can't do anything right without me holding their hand and telling them exactly what to do.

/vent
Deal Addict
User avatar
Aug 30, 2003
3152 posts
42 upvotes
thanks for all the advice mia. i defenatly have to do some more research, i cant get on the osap web site...must me down.

i owe quite a lot, and i think that i could qualify for interest releif in the worst case if i don't have a job.

in that situation would it be better to make a $6K payment now (and reduce the principle) and get interest releif in June?

i was also thinking i could use that $6K to make payments even if i don't have a job. but i'm thinking it might be better to just take the interest releif.

edit: i was able to get some OSAP info via google cache! since i owe a lot of $ i think i will pay that $6K ($ i saved from OSAP during school) to reduce the principal. then in the worst case, if i don't have a job by June i can claim interest releif. seem like a good idea?
Deal Addict
Feb 9, 2005
3039 posts
Ottawa
rilhouse wrote:thanks for all the advice mia. i defenatly have to do some more research, i cant get on the osap web site...must me down.

i owe quite a lot, and i think that i could qualify for interest releif in the worst case if i don't have a job.

in that situation would it be better to make a $6K payment now (and reduce the principle) and get interest releif in June?

i was also thinking i could use that $6K to make payments even if i don't have a job. but i'm thinking it might be better to just take the interest releif.

edit: i was able to get some OSAP info via google cache! since i owe a lot of $ i think i will pay that $6K ($ i saved from OSAP during school) to reduce the principal. then in the worst case, if i don't have a job by June i can claim interest releif. seem like a good idea?
Great idea. Alternatively, you may want to consider investing your 6k, milk interest relief while you can, and then you can put your 6k + interest from investing onto the principal when they decide it's time for you to start paying.

I think that interest relief doesn't take into account any assets you may have, just your employment status..
× < >

Top