Osap tips/advice/questions

[BBQPorkBun]

Thanks to RandomSanity in another thread, its been brought to our attention that OSAP is changing their ways of repayment assistance.

Interest relief and Debt Reduction will be replaced with Repayment Assistance Plan (RAP)

You can read more about it here:
http://www.canlearn.ca/eng/after/rep...ance/rpp.shtml

Positives is that the program overall is more fair to everyone, basically everyone pays what they can afford. But on the same token, you gotta pay what they think is affordable (20% of income), no more not paying for 6 months at a time.

It is especially beneficial after the 5 year mark where basically the goverment helps you pay off the portion the you cannot afford.

Gov't is basically guaranteeing that you will be debt free after max of 15 years.

I still have some questions myself about it like how they verify a change in your status if you don't tell them (like you just got a new job), do they do an annual check with CRA, or how do they regulate this. Anyone with answers or material to add is welcome.

Ive created another thread to segregate the old system from the new.


Hm....getting old, maybe I should retire from the thread since the inside info ive collected from before no longer applies anymore...


EDIT: Thanks to Mysteek and other supporters of this thread (and the old one), I will ask for those found the threads helpful to nominate/vote for us for "Most Helpful Thread Nominations". And I say us because I obviously share this honor with CSK'sMom ^_~

http://www.redflagdeals.com/forums/s...d.php?t=763768

[sunnyd71]

The province you have selected has not yet aligned with the proposed federal Repayment Assistance Plan (RAP). Therefore please enter the loan information for your Federal loan (your Canada Student Loan). If you do not know this amount because your loan is from an integrated province (Ontario, Saskatchewan, Newfoundland/Labrador or New Brunswick) then you can estimate the Federal portion of your loan total by entering 2/3rds of your total loan (e.g. multiply your total loan amount by 0.66).

What does this mean?

Different provinces and territories have different repayment assistance programs. You are asked to enter this information so that the tool generates the most accurate repayment assistance information possible.

Please note that Quebec, the North West Territories and Nunavut do not participate in the Federal system and therefore are not eligible for Federal repayment assistance programs. Please consult your provincial or territorial student loan web site to learn about their repayment assistance programs.

So what does this mean for us Ontarians? Does it mean there are both interest relief for the Ontario portion and the new system for the federal portion?

[BBQPorkBun]

So what does this mean for us Ontarians? Does it mean there are both interest relief for the Ontario portion and the new system for the federal portion?

good question, but when i see 'have yet to align' i would think its just a matter of time. i would think its costly and inefficient and unnecessary to maintain 2 systems

[noxe2]

how does this affect students who are studying but not taking OSAP anymore and have some loan with them? (took OSAP 1st and 2nd yr)

[Setz]

When is the deadline for OSAP applications?

[Setz]

If you were eligible for the QE Scholarship the deadline was June 19th. If you weren't there really isn't a deadline other than 30 days before your study period ends. Either way, the sooner the better.

Alright, thanks. Will probably do my application sometime this week or next week. I actually started an application back in April or March, but I found out it was for the 2008 year; didn't find out until the last minute.

[aznblade]

Might as well post my question here, no idea if I should post it on the Old thread haha. Oddly, when I went to apply for OSAP today I couldn't find my program o_o. Is it cause it's not there yet or something?

[aznblade]

Is it a new program? Many of the schools have not yet updated OSAP with all the info needed. Things like tuition, book costs, etc. If it's a new program it may not show yet till the school get their updates into OSAP.

I don't think it's a new program, it's my second year into the Human Resources Management program w/ co-op at GBC. I guess I'll wait till next week and see if it's there~ Thanks! ^^

[aznblade]

LOL I'm sorry! I clicked on the 08-09 app T_T, I'm so stupid! Thanks for the help CSK

[BBQPorkBun]

how does this affect students who are studying but not taking OSAP anymore and have some loan with them? (took OSAP 1st and 2nd yr)

doesn't affect you, cuz you never had it the old school way. worry about it when you're done

[minttea]

Is there a way to change the program you're in online? or would I have to call in and ask them to update my profile? I am switching to a program with a considerably higher tuition fee, if that helps.

[sunnyd71]

So under the new repayment assistance program, is it that the government pays 100% of the interest and you make affordable payments strictly toward principle? I'm not entirely sure after reading about it on the website.

[sunnyd71]

Not quite from what I understand. Payments will be capped at 20% of your family income and the gov't will make the rest of your payment which may include principle and interest. If income is under $20k no payment in required at all. After 5 years on RAP (repayment assistance plan) principle starts to be forgiven. Repayment will also be capped at 15 years, 10 years if you have a permanent disability.

I thought so originally as well but then it mentions that your payment will go toward principal first.

For the first five years under the RAP, student loan borrowers who qualify will make affordable payments (or no payment) toward their loan principal. Paying the loan principal first reduces the total debt.

[BBQPorkBun]

Not quite from what I understand. Payments will be capped at 20% of your family income and the gov't will make the rest of your payment which may include principle and interest. If income is under $20k no payment in required at all. After 5 years on RAP (repayment assistance plan) principle starts to be forgiven. Repayment will also be capped at 15 years, 10 years if you have a permanent disability.

This is what I understand it to be, and please correct me if ive mistaken.

The example is monthly payment: 450 where 50 of that is interest (400 principle)

scenario 1 (first 5 years)
what osap calculates you can afford: 300
you pay 300 toward the 400, the 100 sits there, gov't pays the 50

scenario 2 (first 5 years)
what osap calculates you can afford: 450 (or higher)
you pay 450, of it 50 goes towards interest

scenario 3 (after 5th year)
what osap calculates you can afford: 300
you pay 300 toward the 400, gov't pays 150 to pay interest and lower principle

scenario 4 (after 5th year)
what osap calculates you can afford: 450 or higher
you pay 450, of it 50 goes towards interest
(same as scenario 2)

[sunnyd71]

This is what I understand it to be, and please correct me if ive mistaken.

The example is monthly payment: 450 where 50 of that is interest (400 principle)

scenario 1 (first 5 years)
what osap calculates you can afford: 300
you pay 300 toward the 400, the 100 sits there, gov't pays the 50

scenario 2 (first 5 years)
what osap calculates you can afford: 450 (or higher)
you pay 450, of it 50 goes towards interest

scenario 3 (after 5th year)
what osap calculates you can afford: 300
you pay 300 toward the 400, gov't pays 150 to pay interest and lower principle

scenario 4 (after 5th year)
what osap calculates you can afford: 450 or higher
you pay 450, of it 50 goes towards interest
(same as scenario 2)

This is also how I understand it and believe this is exactly what CSKsMom was saying as well. As well, people with permanent disabilities are in stage 2 right away. (typically what happens after 5 years for other people.)

How does the 6 month grace period factor into this now? Is full interest still charged and added to principal for these 6 months and then you can join RAP? I would assume so since your payment is $0 for those 6 months.