Students

Osap tips/advice/questions

Newbie
Feb 5, 2014
8 posts
1 upvote
Hi everyone,
I was wondering if anyone could help me with this issue, or any one who has experienced a similar problem. I have defaulted on my student loan a couple of years ago. The integrated OSAP loan has been split into two: the Federal and the Provincial. I have made payments to the Federal portion through Human Resources for six months before I could finally be approved for Repayment Assistance Program. The Provincial portion was awful. I had to pay at least half of the whole balance ($3000 of approximate $6000), otherwise they were going to send my file over to the collections agency. I have borrowed from a relative to pay that off, and have now since then been making monthly payments. Despite all that, another problem arose with them: it was that at least the first half of my first year dealing with them, I was using my credit card to make monthly payments and as a result, there was a one year restriction from reapplying for OSAP again (should I choose to go back to schol) from the last month when I made the payment using credit cards (which was March 2013). I have never heard such policy before. Now, since then I've been making payments using a personal cheques, and I intend to pay off the remaining balance sometime this month or next month.

Now I'm planning to go back to school soon, preferably during the summer semester, or in the fall. Now, what are my chances of reapplying for another student loan with OSAP and be successfully approved?
I'm in good standing with both Federal and Provincial. I have two other issues though: I need a letter addressed to my school's Registrar's office explaining my predicament why there was a lack of academic progress (which had resulted into defaulting my loan in the first place), and also apparently there was a loan overpayment that I need to get rid of.
Now, from my understanding, the loan overpayment automatically goes back to OSAP, and since I've been making payments for both Federal and Provincial, the sum paid should cover more than enough of that loan overpayment. I'm very confused and frustrated right now, not to mention scared. If this loan overpayment stands in the way of being approved again, I would have to pay this out of my pocket, and my savings are barely even enough for me to last until I get a job (currently, unemployed, living at home).

So can anyone tell me, exactly the success rate of getting another loan again because I'm very determined to finish my degree (living in poverty is simply soul crushing), and how exactly do I deal with this loan overpayment (or should I even worry about this at all, since from my understanding, by virtue of my making monthly payments to both Federal and Provincial, I've already covered it).
Please help. Thanks for reading.
Member
Nov 12, 2011
267 posts
17 upvotes
MISSISSAUGA
Hey question,
If i drop out of school now, will i have to start paying back my osap loans immediately after my 6 month grace period? How will osap even know? I havent used osap, i just have loans from previous years which i havent had to start paying back yet since im a student.

Should i just drop out in April to delay the payments or will it not matter?
Deal Addict
Aug 27, 2011
3048 posts
322 upvotes
Toronto
gilmikeb wrote: Hi everyone,
I was wondering if anyone could help me with this issue, or any one who has experienced a similar problem. I have defaulted on my student loan a couple of years ago. The integrated OSAP loan has been split into two: the Federal and the Provincial. I have made payments to the Federal portion through Human Resources for six months before I could finally be approved for Repayment Assistance Program. The Provincial portion was awful. I had to pay at least half of the whole balance ($3000 of approximate $6000), otherwise they were going to send my file over to the collections agency. I have borrowed from a relative to pay that off, and have now since then been making monthly payments. Despite all that, another problem arose with them: it was that at least the first half of my first year dealing with them, I was using my credit card to make monthly payments and as a result, there was a one year restriction from reapplying for OSAP again (should I choose to go back to schol) from the last month when I made the payment using credit cards (which was March 2013). I have never heard such policy before. Now, since then I've been making payments using a personal cheques, and I intend to pay off the remaining balance sometime this month or next month.

Now I'm planning to go back to school soon, preferably during the summer semester, or in the fall. Now, what are my chances of reapplying for another student loan with OSAP and be successfully approved?
I'm in good standing with both Federal and Provincial. I have two other issues though: I need a letter addressed to my school's Registrar's office explaining my predicament why there was a lack of academic progress (which had resulted into defaulting my loan in the first place), and also apparently there was a loan overpayment that I need to get rid of.
Now, from my understanding, the loan overpayment automatically goes back to OSAP, and since I've been making payments for both Federal and Provincial, the sum paid should cover more than enough of that loan overpayment. I'm very confused and frustrated right now, not to mention scared. If this loan overpayment stands in the way of being approved again, I would have to pay this out of my pocket, and my savings are barely even enough for me to last until I get a job (currently, unemployed, living at home).

So can anyone tell me, exactly the success rate of getting another loan again because I'm very determined to finish my degree (living in poverty is simply soul crushing), and how exactly do I deal with this loan overpayment (or should I even worry about this at all, since from my understanding, by virtue of my making monthly payments to both Federal and Provincial, I've already covered it).
Please help. Thanks for reading.
Well, you need to find out what your overpayment was, as well as what you need to get reaccepted. If you've covered your overpayment, and meet the criteria to be reaccepted, you'll be fine.
Newbie
Jan 18, 2014
3 posts
TORONTO
I dropped out of a program in Jan, after one semester and am applying for OSAP for a may program closer to home.. my question is, will OSAP approve my academic probation letter? seeing as i used a disability in this letter, that i did not tell them i had in september. I am newly applying for disability, based on an extreme case of generalized anxiety disorder.. which causes me way more worry than needed especially with osap. Has anyone ever heard of people being denied osap due to a disability they dont think counts as one?
Newbie
Feb 5, 2014
8 posts
1 upvote
joepoonie wrote: Well, you need to find out what your overpayment was, as well as what you need to get reaccepted. If you've covered your overpayment, and meet the criteria to be reaccepted, you'll be fine.
Thanks for the response. I have already talked to my register's office at school so many times, and every time they tell me to call NSLSC, which in turn will me that they are only responsible for the federal portion; the same thing with the Ministry of Government, which deals with the provincial portion. Some agents will tell me that yes, since I've been making the monthly payments, I am covering the loan overpayments. I guess for now, I will wait until I paid off my entire provincial portion. I hope that once my balance is paid off, they will notify my school, and then the registrar's office will update my file. Also, on the OSAP website, there is an outline consisted of two things that I need to do before I am eligible to apply: I write a letter to explain my academic difficulties and finally to pay off my entire provincial balance. So I suppose there's my answer there. But I'm just so worried! I just need confirmation to serve as some sort of affirmation, and to find if someone else had some similar experiences dealing with something like this. I suppose there's nothing that I can do except wait and see.
Deal Addict
Aug 27, 2011
3048 posts
322 upvotes
Toronto
misstea wrote: I dropped out of a program in Jan, after one semester and am applying for OSAP for a may program closer to home.. my question is, will OSAP approve my academic probation letter? seeing as i used a disability in this letter, that i did not tell them i had in september. I am newly applying for disability, based on an extreme case of generalized anxiety disorder.. which causes me way more worry than needed especially with osap. Has anyone ever heard of people being denied osap due to a disability they dont think counts as one?
I wouldn't be as concerned as to not get OSAP because of a disability. I'd be more concerned that you won't get OSAP because you were on probation twice.

The better question is what were your grades like in the first semester. If your grades were poor, you'd already be under "probation" number one at the beginning of January. Then by dropping out and applying for another program, that's technically another "probation". If you had poor grades in your first semester, you could be looking at two counts of "probation", which would leave you without OSAP for a year.
Deal Addict
User avatar
May 13, 2005
2281 posts
1627 upvotes
Toronto
Are all overpayments made in a month directly contribute to the principal? Or does it get messy and it is used for for future interest payments.
Newbie
Feb 15, 2014
24 posts
3 upvotes
Question about the osap deadline. As far as i know feb 24 is the last day to apply for osap as its 60 days before the end of the study period.
I defaulted on a loan from about 4 years ago(dumb) so i had to pay everything back in full. My question is I made my last payment last week. I was told it may take 10 business days for a provincial block to be taken off my account(federal has been paid).

This may overlap the deadline. Am i able to just start an application and wait for financial aid to lift the blocks?
Deal Addict
Jul 26, 2012
1429 posts
100 upvotes
1. OSAP is interest free while I'm still in school? So if I go to Georgian College on a 2 year program, I don't pay any interest until a month after the final class?


I am fairly sure the answers are yes to both my questions, just looking for confirmation, or correction if necessary.
Member
Nov 8, 2009
269 posts
65 upvotes
1. Is the OSAP estimate accurate? Normally I would receive 5-6k a term in loans + grants, but since I'm on a co-op term atm my funding for the next term was reduced to just the 30% rebate.

2. If I lie on my OSAP application about the value of my cash assets will assets how would they find out?
Deal Addict
Aug 27, 2011
3048 posts
322 upvotes
Toronto
linske wrote: 1. Is the OSAP estimate accurate? Normally I would receive 5-6k a term in loans + grants, but since I'm on a co-op term atm my funding for the next term was reduced to just the 30% rebate.

2. If I lie on my OSAP application about the value of my cash assets will assets how would they find out?
(1) It's as accurate as the information that you enter into it. If you put garbage in, you'll get a bad quote. If you put in accurate information, you'll get a good quote that is close to what you will end up with.

(2) They find out via your tax return info from the CRA and bank account info (given by you). You get caught lying, and you need to pay them back pronto.
Newbie
Nov 24, 2012
1 posts
ETOBICOKE
Hey guys, I have a quick question about the Ontario Student Opportunity Grant (and OSAP in general)

I am currently in school, and I graduate in August 2014, and will have full-time job starting September 2014

Just this month (February) I picked up a part-time job, but when I applied for OSAP last december I reported income for Jan-Aug 2014 as 0 because I was not expecting to make income. Based on this assessment my funding was approx $13,000 in loans with $4000 in OSOG relief. I'm worried that they will take away my OSOG because I will probably make around $4000 from now until August from this part time job.

What should I do??? When they look at my 2014 tax return, how would they know if the income was from my study period (jan-aug) or full-time work?

Should I just quit my part-time job? Does anyone have any advice/may have gone down the same path before?

Thank you!!
- Nervous student
Deal Addict
User avatar
Nov 24, 2005
1426 posts
139 upvotes
Is a students OSAP effected by starting to save for retirement with an RRSP?
Deal Expert
Mar 25, 2005
22691 posts
3682 upvotes
Moe Hunter wrote: Is a students OSAP effected by starting to save for retirement with an RRSP?
Provided it is liquid, yes it is considered.
Deal Addict
User avatar
Nov 24, 2005
1426 posts
139 upvotes
Kasakato wrote: Provided it is liquid, yes it is considered.
"liquid" I'm not aware of a non-cashable self administered RRSP? Is there a Locked/ Non-liquid RRSP? That would not affect the OSAP amount available to a 20yr old 3rd yr. student paying 100% of their way?

I guess the real question here should be is there any way a student 100% OSAP work study through study period and working full time in summer can begin a retirement savings plan that will not affect their OSAP amount received? Thanks. . .
Deal Expert
Mar 25, 2005
22691 posts
3682 upvotes
Moe Hunter wrote: "liquid" I'm not aware of a non-cashable self administered RRSP? Is there a Locked/ Non-liquid RRSP? That would not affect the OSAP amount available to a 20yr old 3rd yr. student paying 100% of their way?

I guess the real question here should be is there any way a student 100% OSAP work study through study period and working full time in summer can begin a retirement savings plan that will not affect their OSAP amount received? Thanks. . .
A LIRA would not affect funding. The short answer is no, its not technically possible as savings should be used to pay for school.
Newbie
Feb 15, 2014
24 posts
3 upvotes
Got a call from cra saying i owe 3100 to the govt via student loans.

My loan defaulted in 2012 and the balance was 2800. It was paid in full last october and they sent a letter of clearance to my school...i get a call today saying i owe another 3100.

Id like to add in total i have received 4300 in loans and 175 in a grant. 3100+2800=5,900.

I was told one of my grants became a loan feb 20,2014 and is the reason 3100 which was forwarded to cra. This is frustrating cause cra wont tell me where it comes from and nsl tells me to contact cra.
Can this be an error?
Deal Expert
User avatar
Aug 22, 2003
15540 posts
981 upvotes
Niagara Falls
Entirely possible. If you read the fine print they can convert grants to loans if you default. And once in collections all bets are off....
Thinking seriously about the 4 S's...Sun, Sand, Surf and ... Booked for Sept in Mexico and booked Samana DR for Jan!
Deal Addict
May 3, 2008
4442 posts
247 upvotes
How do I get a T2022A from 2013 for the payments I made back to the NSLSC/Osap for last year? I can't get them throug my uni since I graduated a little while ago and was not making repayments while in school.
Member
Nov 12, 2011
267 posts
17 upvotes
MISSISSAUGA
Going to re-ask this:
Hey question,
If i drop out of school now, will i have to start paying back my osap loans immediately after my 6 month grace period? How will osap even know? I havent used osap, i just have loans from previous years which i havent had to start paying back yet since im a student.

Should i just drop out in April to delay the payments or will it not matter?

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