RESP, OSAP

The remaining balance from first term will be deposited in her bank account. Not held over for second term.

Get her to check out the awards page on her school website. She can apply for bursaries every term.

For my kids' OSAP we put any money leftover from the grants (don't have to be paid back) into their spending account. The OSAP loan amount goes into a separate HISA. Our goal for them is to not use the loan portion. The oldest didn't need his loan portion and paid the loan back at graduation. He didn't have any interest cost. He made a little bit of interest money. And it helped his credit rating. The next 2 aren't done school yet.

So their spending comes from OSAP grant -> bursaries -> RESP -> their savings -> OSAP loan.
Living at home isn't an option for them because of distance so they have to save up more and be more careful with their money than someone who lives at home.

In our case, my daughter didn't get an OSAP grant. She got a bursary. Her loan will only cover 50%of tuition. OSAP is applied directly to tuition by schools finance system.
I still don't see why OSAP after resp makes sense. Shouldnt it make more sense to use interest free OSAP money for 4 years while RESP grow? Then after graduation pay lump sum from RESP.

garce wrote: ↑ In our case, my daughter didn't get an OSAP grant. She got a bursary. Her loan will only cover 50%of tuition. OSAP is applied directly to tuition by schools finance system.
I still don't see why OSAP after resp makes sense. Shouldnt it make more sense to use interest free OSAP money for 4 years while RESP grow? Then after graduation pay lump sum from RESP.

I think zeddy is talking about financial responsibility for the kids. Because OSAP needs to be paid back, he is encouraging his kids not to spend it all on non-essentials.

OSAP only goes directly to the school if you agree to send it directly to the school, otherwise it should be deposited in your bank account. Most schools will direct students to do this because your first tuition payment is normally due before OSAP is available/received. And with some students relying on OSAP to pay tuition, this is the best option for the school.

Can my daughter not withdraw every year and put on TFSA to earn interest for 4 years? And then pay OSAP on year 4