Students

Will OSAP reduce loan and grants/bursary if told I have RESP?

  • Last Updated:
  • Jul 4th, 2012 1:58 pm
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Newbie
May 14, 2012
5 posts
SCARBOROUGH

Will OSAP reduce loan and grants/bursary if told I have RESP?

WIll OSAP reduce the loan and mainly the grant/bursary they were to give me if I told them I have a RESP compared to if I didn't tell them?

--And if they do reduce the grants/bursary and the loan, would they catch me if I were to not tell them that I have a RESP in my application?

I hope someone can answer this! Thank you :)
16 replies
Jr. Member
Dec 19, 2010
156 posts
4 upvotes
Yes, you'll probably get more money if you commit fraud by indicating that you don't have an RESP. Of course they'll then probably go after you...
Moderator
User avatar
Aug 22, 2003
15531 posts
957 upvotes
Niagara Falls
Yes and yes. The RESP is tied to you and traceable through SIN and banking info... Not claiming RESP funds that you withdrew is fraud and they do prosecute when they see fit....
Thinking seriously about the 4 S's...Sun, Sand, Surf and ... Booked for Sept in Mexico and booked Samana DR for Jan!
Newbie
Jun 19, 2012
11 posts
NORTH YORK
YES, never lie to OSAP. They have chased me on simple things even when I made a statement that in the next 4 months I will be making less than 5000 and ended up making a lot more because I got a full time job. Thank God, they did not put me on probation, but they will catch your lie because everything is in your SIN card. In addition, go to your service canada account (or make one), you can track your employment history from there too.
Banned
Mar 23, 2012
773 posts
31 upvotes
Toronto
Yes unfortunately.

Well now you learned your lesson. You should be like everyone else and not plan for your future so that you get more money. VERY broken system.

I have an RESP - go to school full time. Pay my own tuition, car, rent. Parents contribute zero. I do not get osap either because of family income. Luckily I just barely get tuition rebate.

System is extremely broken. It punishes you for planning ahead and saving for education while it rewards the poor with interest free money. Its crazy how so many of my friends are not doing any work, living off OSAP and then plan to not pay loan after.
Newbie
Jul 27, 2008
53 posts
4 upvotes
I think OSAP application is only asking that, whether you will use your RESP this year, if you say no than I believe your grants/loans will not be reduced. You can use RESP in later years of your studies
Newbie
Feb 16, 2012
36 posts
RICHMOND HILL
The question in the app is how much will you use, not how much you have
If you do not gave any other income during the school year you can take about $2500 a year with no impact on OSAP. If your parents make a lot of maney you might be able to take more....
Go read my post on the OSAP thread that explains withdrawals. If your RESP is larger than 15 k you should really take the time and study the beast.. you might loose some $$$


On the positive side the RESP withdrawals a only affect the loan portion not the grants (except the Canada Access Grant that has a condition that you have to have an assessed need of at least $1 )
Newbie
Apr 29, 2010
40 posts
7 upvotes
Oshawa, ON
desitarzan wrote:
Jun 21st, 2012 1:09 pm
I think OSAP application is only asking that, whether you will use your RESP this year, if you say no than I believe your grants/loans will not be reduced. You can use RESP in later years of your studies
Does this apply for savings accounts as well? Is this tied into my SIN, or just RESP, etc...? I have put any extra earnings made over the summer into a savings account. I have declared all summer earnings at the time of application. However; in previous years I have been able to exit the year with a balance still in my account (left over from my loan). All of this money is a portion of my debt repayment so I do not consider it to be disposable income. I will be paying this portion back as soon as my program ends.

Is there somewhere that I need to declare this on my application? I will be entering my last year of study this year, and I do not want to run into any complications.
Moderator
User avatar
Aug 22, 2003
15531 posts
957 upvotes
Niagara Falls
hellium wrote:
Jun 21st, 2012 6:52 pm
I just checked my papers for 2011-2012 & my resp amount reported is 1k less than withdrawn. Should I be taking this up with the school's osap office or NSLSC/osap?
Yes you should be correcting it with your schools finaid office. If they catch it during routine income verification there will be penalties as they see fit.
Thinking seriously about the 4 S's...Sun, Sand, Surf and ... Booked for Sept in Mexico and booked Samana DR for Jan!
Moderator
User avatar
Aug 22, 2003
15531 posts
957 upvotes
Niagara Falls
Orela68 wrote:
Jun 22nd, 2012 11:39 am
Does this apply for savings accounts as well? Is this tied into my SIN, or just RESP, etc...? I have put any extra earnings made over the summer into a savings account. I have declared all summer earnings at the time of application. However; in previous years I have been able to exit the year with a balance still in my account (left over from my loan). All of this money is a portion of my debt repayment so I do not consider it to be disposable income. I will be paying this portion back as soon as my program ends.

Is there somewhere that I need to declare this on my application? I will be entering my last year of study this year, and I do not want to run into any complications.
Leftover OSAP amounts don't get claimed as assets. The problem comes when one only uses 1 bank account. If they audit your app, it will be up to you to prove that it's leftover OSAP funds. I always tell kids to use 2 accounts. One for OSAP only, to keep the funds separate in case of audit. All bank accounts you have are tied to your SIN. ;)
Thinking seriously about the 4 S's...Sun, Sand, Surf and ... Booked for Sept in Mexico and booked Samana DR for Jan!
Deal Addict
User avatar
Dec 4, 2009
3390 posts
383 upvotes
Aurora
Heero01 wrote:
Jun 20th, 2012 10:18 pm
Yes unfortunately.

Well now you learned your lesson. You should be like everyone else and not plan for your future so that you get more money. VERY broken system.

I have an RESP - go to school full time. Pay my own tuition, car, rent. Parents contribute zero. I do not get osap either because of family income. Luckily I just barely get tuition rebate.

System is extremely broken. It punishes you for planning ahead and saving for education while it rewards the poor with interest free money. Its crazy how so many of my friends are not doing any work, living off OSAP and then plan to not pay loan after.
This is not something to lament. Believe it or not, you are learning valuable lessons and skills which will go a long way to establishing the ethic and good sense to plan successfully for the future needs of you and your family.

This sounds cliche, but it's true.

As for your deadbeat friends, there is nothing honourable or redeeming about their actions. Nothing to envy.
That's the end of my rant.
Newbie
May 22, 2012
89 posts
8 upvotes
heads up OP, depending on what year you're in (first and second qualify).. you may qualify for Ontario student access grant (about 3k i believe). Of course this depends on your parents income. And don't quote me on anything.. do your own research.
Newbie
Jul 27, 2008
53 posts
4 upvotes
I was wondering where you can show your RESP amount. I have noticed its only two places it ask about your RESP

1. You will withdraw your RESP (a) Yes (b) No , say if you select No

2. What is your RESP income this year. If you have select No in 1 than there is no income, than I believe you have to write zero

Any other place that I am missing
Deal Addict
Dec 28, 2008
1315 posts
121 upvotes
Ottawa
CSK'sMom wrote:
Jun 22nd, 2012 11:53 am
Leftover OSAP amounts don't get claimed as assets. The problem comes when one only uses 1 bank account. If they audit your app, it will be up to you to prove that it's leftover OSAP funds. I always tell kids to use 2 accounts. One for OSAP only, to keep the funds separate in case of audit. All bank accounts you have are tied to your SIN. ;)
Only interest bearing accounts are tied to a SIN.
Deal Expert
Mar 25, 2005
20181 posts
1465 upvotes
desitarzan wrote:
Jun 27th, 2012 10:48 am
I was wondering where you can show your RESP amount. I have noticed its only two places it ask about your RESP

1. You will withdraw your RESP (a) Yes (b) No , say if you select No

2. What is your RESP income this year. If you have select No in 1 than there is no income, than I believe you have to write zero

Any other place that I am missing
Your income within the specified time periods must include RESP.
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