Osap tips/advice/questions

[BBQPorkBun]

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.

good question, but i think unless osap says otherwise, we'd have to assume its the same, you can only get RAP in nov give you grad in april, and interest accumulates during grace period

[BBQPorkBun]

No to scenario 1 IMO. The gov't would be paying $150. Essentially RAP makes the whole difference in payment, not just the interest like the old interest relief program. They are saying that after 5 years principle forgiveness grants come into play but there is really nothing out there about that yet.

Ugh, I wish they would get some real info up about this other than nice little blurbs that look nice in print but don't tell us jack squat!

i don't think so CSK, or else whats the diff between first 5 years and after the 5th year?

from the gov't point of view they are saying, ok if u can only afford that much go ahead and pay that while i help with interest (similar to interest relief), but after 5 years if i see you still struggle, i'll help you with principle as well to guarantee you will be debt free later

Stage I: This stage applies to the first five years of the Plan.

* 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. ($300)
* The Government of Canada will cover the interest amount owing that the borrower’s calculated affordable payment does not cover. ($50)
* Borrowers will not make payments exceeding 20 per cent of their income towards loans covered by RAP.

Stage 1 says nothing about helping reducing principle at all so in my scenario, the 100 just sits there as debt still to be paid later on and the person makes what he can afford to it.


I know what you are saying in terms of they have to get to 0 balance by the end of 15 years. But I think what happens is at the 5 year mark and you enter stage 2, your monthly payment is recalculated and most likely increases if you haven't been paying all of your principle throughout the first 5 years.

so scenario is i make 19k and hence make 0 payments. my monthly payment is calculated to be 450, but can't afford it, hence my debt sits there and gov't pays interest for first 5 years (similar to IR). come the 5th year, monthly payment is recalculated to be 550, i still pay what i can, could be 0, and gov't pays the rest to ensure debt is 0 at the end of 15 years

[RandomSanity]

I think BBQPorkBun has the right of it. I believe the government makes the interest payments on your behalf for the first 5 years. Only then do they begin to make any payments towards the principle.

It is essentially the same as the old system except open to a wider variety of people and based on a percentage of income (which increases in proportion of your income, it is not a fixed percentage) instead of a percentage of your loan amount.

[BBQPorkBun]

I dunno BBQ, look at the quote in post 20. They specifically say they will make the remainder of the payment, not just the interest. The RAF specifically replaces the outdated interest relief and debt relief programs. They are not supposed to work anything like the old programs. There is no way they can only make the interest payments while capping payment required and still limit the length of the loan to 15 years. After 5 years they are saying additional "more genous" principle reduction grants in addition. It's also my feeling that when/if one enrolls in AF their payments are going to change year to year. They will use their tax returns to adjust the payment yearly...

this is what i added to my previous post to address the term issue.

I know what you are saying in terms of they have to get to 0 balance by the end of 15 years. But I think what happens is at the 5 year mark and you enter stage 2, your monthly payment is recalculated and most likely increases if you haven't been paying all of your principle throughout the first 5 years.

so scenario is i make 19k and hence make 0 payments. my monthly payment is calculated to be 450, but can't afford it, hence my debt sits there and gov't pays interest for first 5 years (similar to IR). come the 5th year, monthly payment is recalculated to be 550, i still pay what i can, could be 0, and gov't pays the rest to ensure debt is 0 at the end of 15 years

[BBQPorkBun]

Just adjusting my scenario to what I think happens, accounting for unpaid principle in first 5 years.

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


After 5 years:
monthly payment has now become 480 because of unpaid principle to date where 30 (interest portion is less because you have been paying down principle up to this point) of that is interest (450 principle)

scenario 3 (after 5th year)
what osap calculates you can afford: 300
you pay 300 toward the 450, gov't pays 180 to pay interest and lower principle

scenario 4 (after 5th year)
what osap calculates you can afford: 480 or higher
you pay 480, of it 30 goes towards interest

[BBQPorkBun]

Maybe you're right BBQ. On this page http://www.canlearn.ca/eng/after/rep...ance/rpp.shtml it says:

Uhg, it almost seems like every different page says something different. And this all supposedly comes into effect on August 1st! And one has to specifically opt in or enroll in this program, it's not automatic. If one is on IR or DR now they will stay on those programs till their term of IR, etc expire. But they do say they can apply anytime after August 1st for the RAP.

Like I said in the other thread BBQ, we'll all muddle through these changes together, LOL! Anyone else notice the OSAP site is really void of any of this info. Heck the aid estimator isn't even updated to this year's programs. I can only assume the site will sit as it is till the "new and improved" site that was promised to deal with all of this comes online.

yes, muddle we shall do

[RandomSanity]

While you guys are on the OSAP topic I'd appreciate a quick point in the right direction.

On my original OSAP application (3 years ago?) I stupidly entered my last date of attending highschool as October 20th, 2004 (which is my birthday) instead of June 20th, 2004. Up to this point it has not affected my loans as I would have been considered dependent even though I'm living away from home, however this year I have been out of highschool long enough to be considered independent and I would like to change this information to the correct date.

When I attempt to change this it states that I need supporting documentation... do you have any idea what supporting documentation would be required for this type of change at this point in time? Would I contact the NSLSC or my schools financial aid office? I've been putting off applying for OSAP this year, as my parents are no longer willing to supply their information now that it should not be required of them.

Thanks!

[cassey48]

I applied for OSAP online and I still haven't received the supporting documentation they said they will send me. Should I just stop waiting and try to print one out instead? The QE scholarship deadline is coming closer and I am worried it won't send it in time.

[RandomSanity]

I would imagine a letter stating the error and your HS diploma and/or transcript would be enough for supporting documentation. I would think you could go through either NSLSC or your FinAid office. We've always dealt with the FinAid office for supporting documentation (tons of it) for our oldest as it's local and easy.

This is a problem, as I don't really have access to either of these. My highschool is quite a distance from where I am currently studying so I would have to request them to send me a copy of my transcript and I'm afraid it would not arrive on time for my OSAP application to be completed before my study period. Do you expect one of either is neccessary or would they be able to change this without?

[RandomSanity]

Hmmm... You may have to call them to try to straighten this out. I can't see them changing it without the documentation because of the fraud aspect to get independent status. Possibly your transcripts are still in the system from your original application though and maybe they will just take a letter. All speculation though as you're going to have to call them to find out specifically what they want....

Thanks for the help, I'll call the NSLSC tonight and find out what they require.

[trisle604]

yeah i also printed mines out after waiting 3 weeks .

[xiLLeNtz]

i just finished applying for osap for my second year of college and i was looking at my account overview and noticed that the program listed for my first year of college is wrong... i must've put the wrong program (the name is similar to the one i am actually on)....

is there anything i SHOULD be doing?

[canadianmom]

I applied for OSAP online and I still haven't received the supporting documentation they said they will send me. Should I just stop waiting and try to print one out instead? The QE scholarship deadline is coming closer and I am worried it won't send it in time.

My daughter's just arrived in the mail today

[mr jbb]

hey,
great thread! last year I was in school in israel and I recieved a$10,000 subsidy should I include this amount in the OSAP application where they ask your other institutions loans. will it be beneficial to state this(theyll lookat it and say Oh wow they need more loan cause of this) or will they look at it in a detrimental way(dangerous to lend more money to them)

any help is appreciated thanks!

[Setz]

What resources are there available to me to complete my application? I'm registering at Brock on July 9th as part of their SMART Start program, so I don't know specifics regarding my program (% of course load I am taking for example).