How to get OSAP Loan Repayment Assistance
You’ve been out of school for a while and you’re thinking of going back. Maybe you want to further your career, perhaps you needed some time to figure out what you wanted to do with your life, or you’re looking to get into a field with more employment opportunities. A report from Statistics Canada stated in 2007 only 65% of university students and 69% of College students were between the ages of 17 and 24, implying a growing percentage of students were not necessarily pursuing a post-secondary education right out of high school.
According to the same Stats Canada Report “more students are attending college and university than ever before, and those who choose to attend do not necessarily follow a “typical” pattern: some are starting earlier, some are returning to school, and others are staying longer in order to complete their programs of study or to pursue graduate studies.”
If you’re one of the students who delayed going to school or is simply returning after a long absence, you bring with you a lot of life experience however, you also carry a lot of life’s expenses. You may have a home, family, and other living expense the average 18-year-old student doesn’t have to deal with like credit card debt, and insurance. So how does the cost of attending a college or university factor into your budget? If you are a resident of Ontario, there is financial assistance in the form of the Ontario Student Assistance Program or OSAP.
OSAP
The Ontario Student Assistance Program was set up as financial aid for Ontario Residences wishing to attend an approved post-secondary institution. Though there are grants available to the student, most of the financial aid will come in the form of a student loan that you will start paying back 6 months after graduation. As with any other loan application, you will not be approved if you have not passed the credit check, defaulted on previous student loans, or misrepresented your financial situation.
Once you’ve completed your studies, you will have a 6 month ‘interest-free’ grace period before you are asked to start repaying your OSAP loan. [The interest-free is only applied to the Ontario portion of your loans, interest will be accrued on the Canada portion of your loan.] If, when the 6 months have passed, you are not able to start making your payments you can apply to extend your grace period. You can also apply to extend your repayment period from 9½ years to 14½ years thus lowering your monthly period.
Repayment Assistance
If you find yourself unable to make your monthly loan payments you can apply to have your loan repayments reduced or even eliminated through the Repayment Assistance Plan. As explained on the OSAP page of Ontario.ca, a new payment will be calculated factoring in your family income, family size, and outstanding OSAP debt. If your application is approved, both the provincial and federal governments will be contributing to your loan payments. As your income grows so will your payments though never more than 20% of your family income.
Defaulting on your loan payments will have serious implications on your financial future. Consequences include having the debt sent to a collection agency, is reported to a credit bureau, you may not be able to get a loan, mortgage or credit card, and your tax refund could be withheld.
After School Debt Help
If you’ve completed your schooling and find you are able to manage the added debt of your OSAP loan along with your living expenses and consumer debt, help is available. 4 Pillars Debt Solutions has been helping Canadians restructure and settle their debts for over 15 years. A meeting with a 4 Pillars Debt Specialist can help you avoid all of the added stress that comes with carrying debt.
A 4 Pillars Debt Specialist will analyze all the pertinent information needed to create a debt settlement strategy that will work for you. Your debt help option may be consolidating all of your payments into one lower payment. You may find that filing a consumer proposal is your best option. If that is the case, your 4 Pillars Debt Specialist will represent you every step of the way. Either way, 4 Pillars will negotiate with your creditors to reduce your debt, ensuring you are debt free within five years. While you are paying off your debt, 4 Pillars will help you rebuild your credit, teach you how to create a realistic budget, and help you prepare for your financial future.
Just one more thing
You’re never too old to learn, despite the cliché about old dogs and new tricks. If you’re a resident of Ontario financial assistance is available in the form of the Ontario Student Assistance Program. You may be re-entering school with a few more of life’s expenses and responsibilities than the other ‘kids’ but you can use that wisdom to your advantage.
About the author
Scott Patton is a 4 Pillars Debt Specialist in Kitchener Ontario. If you have questions about debt restructuring or how your OSAP loan can factor into your overall debt, call Scott at (519) 509-9227 or log onto 4Pillars.ca to find a 4 Pillars office near you.
