Personal Finance

OSAP repayment grace period

  • Last Updated:
  • Oct 12th, 2018 1:06 pm
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Sr. Member
Sep 21, 2006
525 posts
46 upvotes
Do you know if the interest during the grace period is tax deductible? thanks!
[OP]
Member
Jan 1, 2012
274 posts
15 upvotes
Toronto
bluexcrush wrote:
Jan 17th, 2013 11:57 am
Do you know if the interest during the grace period is tax deductible? thanks!
have no idea...
Member
User avatar
Feb 2, 2010
278 posts
65 upvotes
Vancouver
bluexcrush wrote:
Jan 17th, 2013 11:57 am
Do you know if the interest during the grace period is tax deductible? thanks!
Any interest you paid yourself is tax detectable.
Member
User avatar
Feb 2, 2010
278 posts
65 upvotes
Vancouver
michibahn wrote:
Jan 17th, 2013 7:26 am
yes OSOG it is. i think it's a standard grant for OSAP loans if i'm not mistaken. for the repayment assistance, i just called NSLSC and they were the one offered me to apply and see if gets approved. fortunately, i was approved 2x so i have been on RAP for a year. thinking of start paying this year but not sure if interest will kick in if i'll start my payments. the repayment assistance really helped a lot if the interest is not charged.
I think once you apply and get approved, RAP lasts for 6 months. If you don't apply after that time again, Interest will be kicked in.

Since you got approved 2 times, your interest should kick in right now unless you apply for RAP again.

If your conditions are same, what I suggest is apply for RAP. Otherwise start making payments right away.
[OP]
Member
Jan 1, 2012
274 posts
15 upvotes
Toronto
fasacrifice wrote:
Jan 17th, 2013 4:26 pm
I think once you apply and get approved, RAP lasts for 6 months. If you don't apply after that time again, Interest will be kicked in.

Since you got approved 2 times, your interest should kick in right now unless you apply for RAP again.

If your conditions are same, what I suggest is apply for RAP. Otherwise start making payments right away.
will try to apply for RAP again. however, if i don't get approve, does this mean that my monthly payments will now include interest?
Member
User avatar
Feb 2, 2010
278 posts
65 upvotes
Vancouver
michibahn wrote:
Jan 21st, 2013 8:56 am
will try to apply for RAP again. however, if i don't get approve, does this mean that my monthly payments will now include interest?
Yes. Some of your monthly payment will go towards to that months total interest and rest of the your monthly payment will go towards to total amount you owe.
Newbie
Nov 4, 2014
1 posts
I have applied and been on this "grace period" for a year now, because of being un-able to work and/or jobs messing up with my pay and anything and everything bouncing (thank you ***** of a ex boss for that), and I recently put some money into my account for my car insurance, and the day it was to come out I was loosing my mind because some how I was missing $126.86 from my account. WTF RIGHT? well, I go online and I notice I have a "Miscellaneous Payment NSLSC" , so when I figured out it was OSAP, I was thinking and wondering, "okay, I don't remember being told, or even given a letter, that I would be starting my payments again!?". Last time, after the 6 months I got a letter stating that I could either re-apply or not if I chose, but if I didn't the payment would come out at the end of that month. so why did I not get a letter this time?

someone please, un-mind-***** my head right now
sincerely a very angry and frustrated lady.
Deal Guru
User avatar
Feb 24, 2008
14143 posts
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Gatineau
ToriD706 wrote:
Nov 5th, 2014 4:20 pm
I have applied and been on this "grace period" for a year now, because of being un-able to work and/or jobs messing up with my pay and anything and everything bouncing (thank you ***** of a ex boss for that), and I recently put some money into my account for my car insurance, and the day it was to come out I was loosing my mind because some how I was missing $126.86 from my account. WTF RIGHT? well, I go online and I notice I have a "Miscellaneous Payment NSLSC" , so when I figured out it was OSAP, I was thinking and wondering, "okay, I don't remember being told, or even given a letter, that I would be starting my payments again!?". Last time, after the 6 months I got a letter stating that I could either re-apply or not if I chose, but if I didn't the payment would come out at the end of that month. so why did I not get a letter this time?

someone please, un-mind-***** my head right now
sincerely a very angry and frustrated lady.
When you are approved for repayment assistance for a 6 month period, no additional letter (after the approval) is sent. The original approval letter will indicate the period where no payments/affordable payments is to be expected.

Once that period has elapsed, then unless you have submitted another request for repayment assistance, your normal payments will continue to apply. Not sure why you were expecting an additional reminder of the end date.

Your best bet now is to call and put in another request for repayment assistance. This will at least put any future payments on hold until they have come to a decision if you are approved/denied for another 6 month period.

djino
"Doing nothing after your previous repayment assistance has ended is an implication of resuming normal payments. So I'm sorry to say, that no one but yourself is at fault for that payment being taken from your bank account"
Newbie
User avatar
Aug 19, 2014
10 posts
Toronto, ON
My understanding the no interest grace period apply only to the Ontario portion not to the federal one

- no interest is charged on the Ontario portion of your student loan: 0 interest as long you are in the period of grace
- interest is charged on the federal government portion of your student loan: I know a someone who is charged 2.50 per day for the federal portion even he still on the grace period
Deal Addict
Jan 21, 2014
3067 posts
890 upvotes
My daughter was charged $2.78 per day (on a $19.5K loan not sure how much was from fed) during grace period even though she is still in school :(. She did apply in September but because she did not get anything from the OSAP (big fat $0) so NSLSN did not know about her status and started to charge interest since June. Now we are trying to get them to change the status and revert the interest charge but it's so damn hard to reach someone at NSLSN :(

update: my daughter just called and they said nothing she could do, just wait for her status to be updated while interest will continue to stack up and the charged interest is not reversible :(. Well, her school said more 2 weeks ago that they had updated her status but NSLSN still not showing changes today, unbelievable how they work. we not sure who is delaying the process and nothing we could do about it.
Deal Addict
Jan 8, 2006
1075 posts
266 upvotes
mkl38s wrote:
Oct 8th, 2018 8:37 pm
My daughter was charged $2.78 per day (on a $19.5K loan not sure how much was from fed) during grace period even though she is still in school :(. She did apply in September but because she did not get anything from the OSAP (big fat $0) so NSLSN did not know about her status and started to charge interest since June. Now we are trying to get them to change the status and revert the interest charge but it's so damn hard to reach someone at NSLSN :(
There has to be something else that caused this. Is she is in the same program and same school since she start borrowing from OSAP? Is she considered a full-time (full-time studies if you're taking 60% or more of a full course load) student?
Deal Addict
Jan 21, 2014
3067 posts
890 upvotes
comp_freak wrote:
Oct 12th, 2018 8:07 am
There has to be something else that caused this. Is she is in the same program and same school since she start borrowing from OSAP? Is she considered a full-time (full-time studies if you're taking 60% or more of a full course load) student?
Same program. The issue was every year, she applied OSAP around mid August time, then by September she got the grant/loan so her status at NSLSN got updated automatically. This year, she won some big scholarships for her research project so when she declared that, OSAP gave her nothing. Hence her status was never updated and grace period kicked in (starting June) and her payment is scheduled for January 2019. She got fed up so she paid the whole loan off (with around $300 interest). I was wondering if there is anything she could do to get that $300 back because it was incorrectly charged. Also, she won't get anything anyways from OSAP because she will get the same scholarships in the next 2 years so no point applying again.
Deal Addict
Jan 8, 2006
1075 posts
266 upvotes
I was also charged about $900 on interest for summer; they told me I should have notified once I graduated.
Deal Addict
Jan 21, 2014
3067 posts
890 upvotes
The frustrating part for us is my daughter is still in school (and for another 4 at least) and yet they charged her interest due to her school did not update her status (even 3 weeks after she called them and they confirmed they just did it). Oh well, lesson learned here is we have actively pushing our school to update student status (and hope and praise that they do so) if we get nothing from OSAP

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