Personal Finance

Is it possible to get a loan from OSAP with an existing unpaid loan?

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  • May 6th, 2015 9:41 pm
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[OP]
Newbie
Sep 21, 2010
86 posts
1 upvote

Is it possible to get a loan from OSAP with an existing unpaid loan?

I finished a program last year however I incurred a lot of credit card debt. It's taking me forever to pay off my OSAP and I'm planning to go back to school in January.

I should have it paid off by then, but it'll be tight and I may need money to pay for the initial semester fee. Would OSAP grant me a loan if I already have one out? I can't find any information regarding this online.
4 replies
Sr. Member
Jul 29, 2008
858 posts
60 upvotes
I found these answers online when I goggled it-sounds like you can get more -I would call them


Your osap will need to start being repaid 6 months after you leave school. Should you go back to school and apply for osap (and are approved for osap), then the account will freeze again (you won't have to pay any more back) and you are essentially back on the original loan.

*Experience; withdrew for a year and went back to school. As an additional hint, move out; osap gives you a lot more money for being independent and they'll give you living costs as well as schooling costs.



Depends how you handle your debt from now until then. First, it is your responsibility to ensure that OSAP and the National student loan service center have a current address for you. They don't exchange that kind of info so you have to let both know if you move. When you leave, your last day of school is communicated to OSAP and your 6 month grace period starts. About 4 months later you get a consolidation agreement which must be signed and returned by the deadline. At that time you can apply for REpayment Assistance, which will reduce or eliminate your monthly loan repayments.

If you "keep your loan in good standing", which means you are making whatever payments are required (if any) then it will reduce your hassles when you apply for OSAP again. You will probably be in overpayment because you withdrew from school. As long as you only have 1 overpayment you are okay, you can still get OSAP. If you have 2 overpayments you have to repay all of 1 of them before you are eligible for OSAP again. If your loan is not in good standing you will not be able to get OSAP until you pay the outstanding interest at the very least.
Deal Fanatic
User avatar
Jan 27, 2007
5108 posts
971 upvotes
T.
No. You need to have your other loan paid up.

And stop spending money you dont have.
[QUOTE]I know you are, but what am I.... ;) [/QUOTE]
Jr. Member
Mar 29, 2015
164 posts
101 upvotes
London, ON
OSAP operates in maximum terms (340 weeks for bachelor's and master's, and 400 weeks for PhD ) so as long as you haven't exhausted the maximum amount of terms you're eligible for OSAP, you can always get more if your loan is in good standing (haven't defaulted on any payments). My boyfriend has gotten OSAP continuously for his bachelor's, master's, and a certificate program. The size of the loan just keeps growing until you're done school and then you go into repayment. You can do this until you max out the 340 weeks, which is about 6.5 years of continuous enrollment.
[OP]
Newbie
Sep 21, 2010
86 posts
1 upvote
vegaling wrote: OSAP operates in maximum terms (340 weeks for bachelor's and master's, and 400 weeks for PhD ) so as long as you haven't exhausted the maximum amount of terms you're eligible for OSAP, you can always get more if your loan is in good standing (haven't defaulted on any payments). My boyfriend has gotten OSAP continuously for his bachelor's, master's, and a certificate program. The size of the loan just keeps growing until you're done school and then you go into repayment. You can do this until you max out the 340 weeks, which is about 6.5 years of continuous enrollment.
CindyM99 wrote: I found these answers online when I goggled it-sounds like you can get more -I would call them


Your osap will need to start being repaid 6 months after you leave school. Should you go back to school and apply for osap (and are approved for osap), then the account will freeze again (you won't have to pay any more back) and you are essentially back on the original loan.

*Experience; withdrew for a year and went back to school. As an additional hint, move out; osap gives you a lot more money for being independent and they'll give you living costs as well as schooling costs.



Depends how you handle your debt from now until then. First, it is your responsibility to ensure that OSAP and the National student loan service center have a current address for you. They don't exchange that kind of info so you have to let both know if you move. When you leave, your last day of school is communicated to OSAP and your 6 month grace period starts. About 4 months later you get a consolidation agreement which must be signed and returned by the deadline. At that time you can apply for REpayment Assistance, which will reduce or eliminate your monthly loan repayments.

If you "keep your loan in good standing", which means you are making whatever payments are required (if any) then it will reduce your hassles when you apply for OSAP again. You will probably be in overpayment because you withdrew from school. As long as you only have 1 overpayment you are okay, you can still get OSAP. If you have 2 overpayments you have to repay all of 1 of them before you are eligible for OSAP again. If your loan is not in good standing you will not be able to get OSAP until you pay the outstanding interest at the very least.
Thanks! Solid information

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