OSAP tips/advice/questions (Old)

Hello

After reading some OSAP related posts, I decided to make my own post to see if I can answer some questions out there and give some tips.

Having received the max every year, then worked at NSLSC, I may have some good inside info. Last I worked there it was 3 years ago so if they have made any changes to the system, I wouldn't know about it but generally it will stay the same. Feel free to correct my info if anything has changed.

Some tips:
Unless its for experience, don't make so much income. When you borrow, if you made 4k and u get 6k, why not make 0k then get 10k in loans, plus any amount received over 7k will be give to you in the form of a grant. plus your loan is interest free, add inflation, u probably need to pay back 6500 for a 10k loan. I also advise to live away from home, why get a 6k loan when you can get a 10 k loan, pay back 7k and live away.

Apply for interest relief. No payments and gov't pays your interest. Put ur money into ING or PCF and collect money with what you are not paying yet. Even if you make 40-50k you can still get it depending on if you have kids and/or how large your monthy payments are. no harm in trying. if your under that income level, apply for sure or else you are just giving away free money.

Federal loans are P + 2.5 while provincial is P + 1 (at least in Ontario) so pay off your Federal portions first. If you have both, make the minimum u can on the provincial part and max the fed part.

I knew alot of little tips over the years, I guess they will pop up again as this post jogs my memory.

Anyways, in general, plan yourself, do your research, you will save a bundle.

=)

Awesome thread, I have a couple of questions.

1) How much $ did you accumulate in government student loans? What are your current monthly payments?

2) What % is the interest after you finish school?

3) If you complete bachelors and then right away go for masters, will they make you pay for bachelor OSAP loans? Or will they just let you get more money and then pay it off when you find work after.

4) Let’s say you are very unlucky and don’t find work 6 months after finishing school and have no income or savings, any idea what will happen? Will they force you to pay or forget any portion or make some type of a plan for repayment?

Thanks

if for some reason i'm ineligible the first time i apply can i apply again and change some info on my application?

Originally Posted by lesnar

if for some reason i'm ineligible the first time i apply can i apply again and change some info on my application?

Here is what I know, you cannot lie if that’s what you mean because they will check your income and your parents income based on tax forms. You can declare yourself an independent and get OSAP if your parent's income is too high, but you might have to be living away from your parents for that to work.

Federal loans are P + 2.5 while provincial is P + 1 (at least in Ontario) so pay off your Federal portions first. If you have both, make the minimum u can on the provincial part and max the fed part.

What is a Federal loan? Isn't OSAP provincial? Ontario Student Assistance Program? So OSAP is only prime + 1% after 6 months of graduating?..

part of your osap is a federal loan, and part is provincial.

I got an assessment of $0, but I need money for school.

The money I made over the summer is to help the family.

How should I appeal this, what would my excuse be?

I hate OSAP.

So you're basically counselling people to abuse the OSAP system? Nice.

Originally Posted by Bullseye

So you're basically counselling people to abuse the OSAP system? Nice.

Oh please ... save your breath. It just giving us advice as any FRIEND would!

OP: thx for the info about the fed and provincial thing. When I called NLSC, they said the rate was prime+2.5%. If a lot of that is federal, I'd rather pay that off first and then pay provincial.

But how would I go about doing that? Isn't it just monthly payments, or do I specifically tell them that I want the federal portion paid off first?

Originally Posted by tigger03

Oh please ... save your breath. It just giving us advice as any FRIEND would!

Abuse is still abuse, regardless of if it comes from a friend or a fraud artist.

Originally Posted by tigger03

Oh please ... save your breath. It just giving us advice as any FRIEND would!

Taking more loans than you need just to get free taxpayer money? Abuse.

Taking taxpayer subsidized low interest loans you don't need so you can invest it? Abuse.

Originally Posted by PrimoTurbo

3) If you complete bachelors and then right away go for masters, will they make you pay for bachelor OSAP loans? Or will they just let you get more money and then pay it off when you find work after.

As long as you are full time masters, they will not make you start repayments. The government will still pay the interest on your behalf. If you are eligable, you can even apply for more osap money.

Originally Posted by PrimoTurbo

4) Let’s say you are very unlucky and don’t find work 6 months after finishing school and have no income or savings, any idea what will happen? Will they force you to pay or forget any portion or make some type of a plan for repayment?

If you quality, you can apply for interest relief (available in 6-month terms). These can be renewed. The government will make interest payments on your behalf, but you are still responsible for the principle amounts.

Originally Posted by Bullseye

Taking more loans than you need just to get free taxpayer money? Abuse.

Taking taxpayer subsidized low interest loans you don't need so you can invest it? Abuse.

Define 'need'? if you commute to ryerson from oakville, do you need to move out? no, but you may choose to. I am not encouraging to take what you don't need.

If the system was set up so that you can make 40k and not have to pay interest, theres a reason. Its because we live in this great country Canada, OSAP assists people in paying off their student debt. This is an assistance program and they encourage you to make any payments you can to pay off the principal. I am just saying since they come in 6 month intervals, put ur pay cheque in the bank, collect all you can and when it comes time to pay up, put as much as you can. Its smarter to pay $1030 in june than to pay 1000 in January, thats all. This is one of the advantages of a OSAP vs other loans.

I would suggest lets not waste time debating what is abuse and whats not, you can contribute something, or not read this thread.

Originally Posted by lesnar

if for some reason i'm ineligible the first time i apply can i apply again and change some info on my application?

Yes, you can apply again. But change what info? Don't lie because they check ur tax return and other assets in your name. Students also get randomly audited. So everyone, please keep your rental receipts.

In terms of qualifying for interest relief, what will OSAP or the National Student Loan check to see if you qualify. Or is what you put on the application what they go by? Thanks