Making Cents of OSAP Financial Aid Office of the Registrar - Nov 2013

Making Cents of OSAP

Financial Aid
Office of the Registrar
Nov 2013

What is OSAP?
• Ontario Student Assistance Program: federally and
  provincially funded student loans and grants
• Intended to supplement existing financial resources for
  the costs of post-secondary education
• Student, parental/spousal (if applicable) contributions
  are expected
   • Parental contributions – expected for first four years of post-
     secondary studies
   • Spousal – duration of marriage and study
   • Pre-study – working full-time when not in school

Why are there so many rules?

• Governments use taxpayers funds to give loans and
  grants
• Governments pay the interest on all loans while the
  student is full-time
• Grants and bursaries are non-repayable
• Need to confirm identification

Third Party Verification Checks

• Ministry of Transportation (MTO)
   • $5,000 + vehicle value

• Social Insurance Number (SIN) check

• Credit Check
   • Three or more credit accounts in arrears for 90 days, or more,
     with a combined value of $1,000, or more

Lifetime limits to OSAP funding

• Canada and Ontario Student Loans
  • Maximum assistance/interest-free status is 340 weeks of study

  • Equates to approximately ten years of study

  • Extended to 400 weeks for doctoral studies (PhD)

  • Each program – regular number of years + one

Calculation of Need

• Educational costs – Resources = Financial Need

 Educational costs             Resources
 • Tuition                     • Pre-study period
 • Books and computer            (expected/actual summer
 • Living cost (OSAP             earnings)
   assumes student is living   • Study period earnings
   at home if within 30 km       (exceeding $100/week or
   of post-secondary             approx. $3,400 over a
   institution)                  33-week study period)
                               • Parental/spousal
                                 contribution
                               • Vehicle assets, RRSP,
                                 RESP, savings etc.)

Vehicles & Assets

• Combined value of $5,000 for any vehicles in the
  student’s name
   • Applies to spouse if married
   • Includes both leased and/or financed vehicles

• Bank balances and other assets, such as RESP and
  RRSP are included in the assessment
• Government expects students to use their resources
  prior to receiving OSAP assistance

Full-time study status

• Enrolled in 60% of a full course load at all times
  (40% for students with permanent disabilities)
• 100% = 5.0 credits at UTM (2.5 credits per term)
• 60% = 3.0 credits (1.5 credits per term)
• OSAP calculates and provides assistance for each week
  that a student is in full-time studies

Academic Progress Check
• Must be registered in at least 60% of a regular, full
  course load at all times and pass at least a 60% course
  load (40% for students with permanent disabilities)
• Failures, course drops, etc. can impact eligibility
• OSAP Academic Probation – warning
   • Student must write a letter of explanation during
     probationary period

• OSAP Academic Restriction – one year
   • Appeal available under specific circumstance
   • Student must write a letter following the period of
     restriction to request reinstatement for further funding

Income Verification

• Important to accurately report income – personal,
  parental, spousal
• OSAP will verify income with the Canada Revenue
  Agency (CRA)
• If discrepancies occur – overpayments are generated
• Second overpayment – OSAP restriction until repaid
• Severe discrepancies – full OSAP restriction for up to
  five years, plus a requirement for the student to fully
  repay the Ontario portion of their OSAP loan

Overpayments

•   Changing course load – especially below 60%
•   Misreported income – personal, parental, spousal
•   Underestimated income that changes through the
    academic year
•   Misreported or change in assets
•   Second overpayments must be repaid in full before
    receiving further assistance
    • Submit receipt from National Student Loans Service
      Centre to your financial aid office as proof of payment
    • Overpayments are not automatically deducted from future
      years’ OSAP funding portions

Continuation of Interest-Free Status
•   OSAP and NSLSC do not know when a student is in full-time
    studies if they are not receiving OSAP funding
•   U of T does not automatically report status to OSAP/NSLSC
•   If not taking/eligible for OSAP loans, a student must officially
    advise the NSLSC when they are a full-time student
•   CIFS forms are available from the student’s financial aid office
•   Loans will go into repayment six months after the last full-time term
    of study
•   Loans go into default three months after non-payment
    • This will compromise credit history and future loan/grant
      eligibility

Appeals
• See a Financial Aid Advisor to discuss:
   • Parental/spousal income
      • E.g., job loss, medical expenses, essential house repairs, elderly care
   • Summer earnings
      • E.g., in school, couldn’t find work
   • Living away from home
   • Family breakdown
      • E.g., abuse, abandonment, safety
   • Credit check failure
   • Academic progress issues (probation and restriction)
   • Other potential reviews may be available

Reminders

                       Apply early!

Students entering first year of post-secondary studies are
       encouraged to apply for OSAP by May 31

      Submit all required documentation promptly
Check status of your application frequently in case OSAP
           requests additional documentation

Keep in Touch!
    Office of the Registrar
    Room 2122 – William G. Davis Building
    3359 Mississauga Rd N, Mississauga, ON L5L 1C6

    Drop-In Academic and Financial Aid Advising for New and Returning Students
    Mon, Tues, Thurs, Friday: 9 a.m. to 4 p.m.; Wed: 10 a.m. to 4 p.m.

    T: 905-828-5399
    F: 905-569-4301

   m.utm.utoronto.ca (Also in the App Store)
   www.utm.utoronto.ca/reg

   www.twitter.com/UTMRegistrar

   www.facebook.com/UTMProspective
   www.facebook.com/UTMississauga