What Every Student NEEDS to know about OSAP (Student loans Explained) | avoiding student debt canada
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- Опубликовано: 5 июл 2024
- all you need to know about OSAP and student loans... DON'T let this ruin your life!
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#OSAP #Ontariostudentloan #studentdebtcrisis
In 2018, Canadian students owe $28B in student loan debt. With tuition on the rise year after year, it's quite clear that there will be a student loan crisis.
Here's all you need to know:
Eligibility:
- Canadian citizens, permanent residents + refugees are eligible for OSAP
- International students are NOT eligible for OSAP
When to apply:
- Full-time schooling - 60 days before final day of school
- Part-time studies - 40 days before the final day of school
What you get:
- Grants - money the government gives you, you do not need to repay this amount
- Loans - money that the government lends to you that you have to repay at a later date
- Note: the amount you get depends on study load, education expenses, financial situation and whether or not you are an Indigenous person or have a disability.
- NOTE #2: Funding from an RESP (Registered Education Savings Plan) will not affect the amount of OSAP funding you get!
Being smart with your loan:
- Budget! This can help you manage your spending habits
- The loan has a 0% interest rate during your study period, meaning you can easily leverage this debt to achieve a decent rate of return (note: none of the information in this video is investing advice, I am not a financial expert so always do your due diligence!)
Paying off the loan:
- 34% of students repay their student debt within the first 3 years of finishing school
- The average student takes 9-15 years to do so...
- There is a 6 month grace period after schooling ends in which the loan stays at a 0% interest rate
- The National Student Loan Service Center (NSLSC) will provide information to you about how much you owe, the expected monthly payment, the total payments required and the date of your first payment
- Note that your payments are made to the NSLSC and NOT OSAP
- Note#2: the information given to you by the NSLSC is based off of a 9.5 YEAR repayment schedule so you can be more aggressive when paying down your loans!
Interest Rates:
- The interest rate for student loans in Ontario is: Prime rate + 1%
- For the rest of Canada, the interest rate is: Prime rate + 2.5%
- The prime rate is the lowest interest rate that banks will charge to the "best" borrowers (currently it is at 2.45%).
- Note that the average student debt for an undergraduate bachelor's degree is $28,000 (source: Stats Canada 2015).
Alternative funding:
- Student lines of credit: basically work like credit cards in which you can borrow money up to a limited amount (interest rates may be higher or lower than OSAP rates, but is charged even while you're in your period of study)
- Payday loans: hell no, this is predatory by nature and have ridiculously high interest rates
- ALWAYS consider bursaries, scholarships, work study programs and summer employment programs before you even LOOK at taking alternative loans that have less favourable conditions compared to government loans.
- Before you consider this, budget to reduce expenses, consider a cheaper education and take on more side hustles to increase your income!
Bankruptcy:
- I'll touch briefly on this because I don't want any of you guys to go through with this and lose everything you have
- Bankruptcy CANNOT forgive student loans UNLESS you have been out of school for at least 7 years (7 day rule)... for OSAP (in Ontario), you must be out of school for at least 5 years before bankruptcy can forgive student loans
- Bankruptcies stay on your credit report for at least 6 years and will hurt your credit score
- A lower credit score can make it hard for you to get loans to finance things like a house, a car or anything else that you need to buy in the future
Stay safe! ~ Martin
LOL I ran out of space in the description so here are the sources I used
Please let me know if you want me to make more videos like this, else I will work more on more "student" related content (even though this is technically part of our lives at this point!)
Before you apply: www.ontario.ca/page/learn-about-osap#section-3
Paying back OSAP: www.ontario.ca/page/pay-back-osap
General information (OSAP): en.wikipedia.org/wiki/Ontario_Student_Assistance_Program#Financial_Resources
Student lines of credit: www.canada.ca/en/financial-consumer-agency/services/loans/student-lines-credit.html#toc0
OSAP Calculator (Estimator): osap.gov.on.ca/AidEstimator1920Web/enterapp/enter.xhtml?lang=en
Loan repayment calculator: tools.canlearn.ca/cslgs-scpse/cln-cln/crp-lrc/af.nlindex-eng.do
Student debt statistics Canada: www150.statcan.gc.ca/t1/tbl1/en/tv.action?pid=3710003601
Canadian students owe $28B of student debt: globalnews.ca/news/4222534/canadian-student-loans-government-interest/
Bankruptcy (don't get to this stage): www.ic.gc.ca/eic/site/bsf-osb.nsf/eng/br02057.html
Prime rate in Canada: www.bankofcanada.ca/rates/daily-digest/
More facts + statistics on Canadian debt: www.hoyes.com/press/joe-debtor/the-student-debtor/
I didn't mention this in the video, but if you're an out of province student you can only qualify for OSAP if you lived in Ontario for 12 months while not being engaged in full time studies!
Great video and insight Martin! I’ve actually been sharing my OSAP debt repayment journey ✨
Best of luck with that! :)
Thank you for teaching me everything my useless highschool and guidance never taught me
I wish school, or even our parents taught us this stuff earlier
Yes. Please... You should do a lot of videos like this! really helpful. Thank you so much for sharing your knowledge!
Thanks, glad to hear it helps:)
Thank you so much for these videos, I’m a senior and these are really helpful! :)
Glad it helped! Thanks for watching :)
Great video- very informative
Very informative, thank you!
Glad it was helpful!
Hope you can answer this question for me. How do I use the monthly payments towards OSAP to build up my credit score. I heard CTFS is the only credit card that can pay off student loans. I dont want to just do preauthorized debit
THANK YOU SO MUCH FOR THIS UR GREAT
ty:)
just in time!! I was just looking at osap and my resp since I already know how much I’m getting from scholarships. this is super useful, 100/10 will be revisiting come payment time
ayy! glad it helped! don't want to be swimming in that d e b t in the future!
Martin Leung online school is going to be CHEEEEEAP
@@leonakuo4072 $ or as in people will be cheating? 😂
Martin Leung I was thinking $ but I believe the most correct answer would be C) all of the above
@@leonakuo4072 how about d) none of the above
Hello,, thank you for your time your video is really helpful... I have 2 question, is my TFSA will effect my application for OsAp? ,,, Socend question is there any other Grant can we get from the Government... I am PR. Thank you again.
Is it mandatory to sign MSFAA for the undergraduate student in Ontario? I heard that it has to be only for masters (graduate) student?
Hi thanks for your awesome videos.
How much osap will give me for a two years college full time aircraft maintenance?
Thank you ❤
Hey man. Nic e video.
I was trying to get admission for 4 years bachelors degree
I was wondering which amount shown in the estimators calculator in OSAP website will be receiving to my bank accouNt ?
And the total living and travel allowance shown there, is it for per term or for an year ?
Great video! Would you be interested to do another updated version? Since some regulation might have changed.
The interest for osap loan starts from the day of the graduation.
Only the "Ontario" portion of the loan, my bad. www.ontario.ca/page/pay-back-osap#:~:text=You%20have%20six%20months%20after,(%E2%80%9Cloan%20principal%E2%80%9D).
It’s all thanks to Doug Ford 😒
Let's hope we save enough to pay it off ASAP nonetheless!
OSAP loan begins when you are not enrolled in full-time studies. Let's say you have a couple of courses remaining, that does not qualify you as a full-time student. Your student financial aid office will declare you as a part-time student and the OSAP loan will begin.
Does credit rating effect osap amount?
I tried calling OSAP, NSLSC and Alberta student loans but every single one of them tells me to contact the other loan providers to get more information. I took OSAP but dropped out because of the financial situation, my grants converted to loans but aren't added to my principal on NSLSC. I want to know that can I get loans from Alberta if I pay back my Federal part of Loans and Grant overpayments, I called the financial advisor at my previous college and they said that they're not sure but they think that I will be able to apply for Alberta Student loans and OSAP won't effect that funding. Any person with the same situation or anyone who's been in a similar situation? I need information, Please.
Is it possible to get a bursary from university if I have an OSAP loan ?
can u make a video on what happens if u graduate with alotta loans owing but you have a disability
Hai I am trying for osap..but I want to know in between between study can we work ,there is any limit in hours or income??
If we have house loan here is it effect the osap???
Hi, do you know how OSAP interest can support tax returns? Can paying the debt slowly, assist you when filing for your taxes?
not 100% sure, but I'm pretty sure the answer is yes
I have recently applied for OSAP for the summer semester and I'm currently waiting to be accepted. Since the deadline for tuition is May 19 for the summer semester and I probably wont be processed by then should I leave my tuition payment in student center "blank" until my funds are processed and sent to the college by OSAP?
Hey! I responded to your email. Thanks again for watching!
If the im taking more than the 100% course load do I still put 100% or can I put 110, 120% etc
Hey Patrica! I'd ask your school about this because I'm no expert in this field, so I don't want to give you the wrong information. I'm just giving what I know about the OSAP application in this video 😅 Sorry, but I hope you understand! Good luck!
hi, what about under a consumer proposal.would you possibly got approved by osap?
I don't think there's anything that says you can't apply for OSAP under a consumer proposal, I think you will be approved on a case by case basis though (so no guarantees!)
如果是已婚家庭，申请osap 会不会查存款？
Quick question: do I need to write down my documents in all CAPITAL LETTERS in boxes?
don't think so
Can you please help me out i I am literally feeling a bit like ive been F***over by my school but as well as student loans canada for not doing anything about it to be on my side and not helping in any way
For a foreign student applying for osap outside of ontario, is the loan going to be deposited into a canadian bank account or can foreign bank account also be used?
I believe they can actually send it straight to your school as a tuition payment if you are worried about banks
Does grant use to pay tuition too? Or I can use it to other things?
yes, and yes (pretty sure you'd have to change to autodeposit in your bank account or they will automatically put your funds towards paying your school tuition)
Hey guys, OSAP took so long to pay for my second term in college, and I had to pay for it.
The issue is that the money that they had to send me, they send it to college to the fee I already paid.
What do I do?
it's going to be in your account as credit, so you won't have to pay as much in your next term of study
Hey I'm a resident of saskatchewan outside of Ontario and I haven't loved in ontario for 12 consecutive months will I still be eligible for osap or will I have to apply for student loans from the saskatchewan government
If you aren't considered an ontario resident, then you should look to alternative methods of funding
great video
thanks!
Do you apply for OSAP before you uni starts or While your in uni. Do you need to apple for OSAP every year.
You can do either, as long as it's a week before your year ends. You need to reapply every year
In the OSAP application, it asked for foreign income and non-taxable income. The detail asked about interest, dividends or capital gains from TSFA, but we don’t know how to see the interest, can we omit that?
It's your responsibility as an applicant to disclose this information, just because you don't know how to find it doesn't mean you can omit it. Look for your T-slips for that information or find someone who knows how to find this info. Hope that helps!
Martin Leung Thank you
interest DOES build up and accumulate literally the first day after you finish study period ends. check your nslsc
i finished in 2019 april
may 1st, $~5 interest accumulated
for the entire summer 2019, $1000 of interest ALONE accumulated
when the six months were up, then and only then could i apply for the RAP
luckily corona is also helping with the stoppage of interest
You're right, pay it ASAP to the best of your abilities!
what if your parents already have a pending bank loan background. are you eligible for the Canadian loan?
Yes, you are still eligible for OSAP if you meet the other requirements that are listed in the video!
My mother paid off her OSAP one year after she graduated 😄 Question: should I apply for OSAP for a one year program? I plan on applying for it tomorrow - the program is waitlisted at George Brown, do you suggest that I apply for the same program at 2 other Toronto colleges?
Apply for OSAP if you can pay for it!
@@Martin_Leung what happens if you can't pay for it declare bankruptcy? lol
Can you plz explain two things
I was out of high school for four years (but I graduated and went to uni in another country) OSAP considered me a dependent student when I answered ‘yes’ to the question whether I was out of school... do they mean dropping out or just out of school in general
And also, I have two siblings who go to high school are they considered dependent children? Thank you!
I'm not sure about the first question, but as for the second one they are considered dependent children (unless they're somehow living away from home with a full income)
@@Martin_Leung ok thanks! So it doesn’t matter that both the mom and dad are the same right? Cuz I read somewhere that it does and got confused
Do you have to pay back the OSAP that u accumulated in an undergraduate program while attending grad school like Medical school for example?
From what I understand, the osap loan is interest free for graduate programs (med school included.) However, if you're in residency or fellowship then the interest free status does not apply. Check this for more details: osap.gov.on.ca/prodconsumption/groups/forms/documents/forms/tcont003388.pdf
Hope that helps!
@@Martin_Leung thanks so much, luv ur content btw!
@@itzoyoomar5789 thanks for watching :)
I'm looking into going to college in fall 2021 but I'm worried about getting OSAP for the term because I am from a low income family and I already have crappy credit so I don't know if it's worth it.
look for scholarships/grants/bursaries first, and then see if you can find a cheaper program. If you've already done all that, then ask yourself if you really need college, if yes, then you're probably going to apply for OSAP
I feel like as long as you keep your expenses minimal and prioritize paying down the loan at the end, then it shouldn't be a big deal
Question- for grace period of 6 months no internet rates? If I pay my loan within grace period then no interest?
grace period is for the Ontario portion of the loan. Interest will be charged for the federal portion
Hiii.. plz reply.. OSAP will fund for online bootcamps like career foundry ??????
I haven't had experience with this so I can't say for sure. However, I don't think it does.
Does CESB still pays even if we start our uni on 2023 of sept
Got funded my grant thanks to andrew_garcia7142
What do I do after I submit the OSAP application?
There will be other documents that you are required to submit, OSAP will give you the instructions for this!
wher we can get Line 150,308,310,312,435 from 2019 income tax assessment
All on the T4
Do you have to report OSAP your summer job income?
osap.gov.on.ca/dc/PRD6672457
Hi Martin! I'm just trying to understand why the loan is bigger than the tuition fee. Do you know why this is?
other living expenses
Did the grants only can pay for the all course in the year or i have to take the loan too (for example if my uni was 9000 per year how much will be the grant and the loan )
the grant and the loan will be different based on how much your program costs, your parents' income, and various other factors. Sometimes the loan + grant will be enough to pay the tuition + living expenses (most of the time, the grant by itself will not cover everything).
if you don't have enough to pay for school, then take the loan (and make a plan on how you'll repay it ASAP!)
The grant only can cover the tuition fees
@@ahmedsalih1216 it's fine to take a loan, just keep in mind that you have to pay it 6 months after you're done your undergrad/school so don't go spending money on expenses where you can cut back on
What should I do for the RRSP question on the application? My parents bought it, but it’s not mine.
Hey! To clarify, do you mean RESP? Since if it is an RRSP, it is not required on the application. Hope that helps, thanks for watching!
Martin Leung It really asked for RRSP, and I can’t find RESP anywhere.
@@yunyinghuang7415 As long as it's not contributing money into your own RRSP then you don't have to put any number down so you can say "no". I know I had space in my RRSP but I never put any money in it so I just put no. Clarify with your parents to see if they put any money in your rrsp, if not then you can just put "no". Hope that helps!
Martin Leung What about RESP, I can’t find it on the application?
@@yunyinghuang7415 OSAP is not concerned with your RESP amount
How much should I have in my savings account before applying Osap? Plzzz help me
Hey! there's no definite number I can give you, just do the best you can and save as much as you can. I had around $5,000 before going to school and I don't spend much out of pocket! Budget accordingly and you won't have much to fear! :)
right now im in the free psw course..osap give me a grant and a loan.. should i take the loan im thinking i cn use it for something else.what do you think?
as long as you know what you're doing with the money (if you can get a return, then sure)
@@Martin_Leung thanks for the response
I have a question please, can the international students apply for OSAP? Thank you very much
International students cannot apply for OSAP. You may need to ask the college or university directly for financial aid (from their financial aid offices). Hope that helps!
@@Martin_Leung thank you very much 🙏💕
Hi, will investing in stocks and day trading affect my grants in the future if I'm a dependant?
Unsure, I got a bit less but still got some funding
Sample size n = 1 though
Hi,... Martin's thanks for the video.... what are the best investments I can get to help ensure that it generates enough profits to be able I will be able to pay back my student loan early.
I'm not a financial advisor so I can't really say (don't want to be liable because no investments are guaranteed). Do your own research
1 question, for grants, Since I dont have to pay them back, Am I allowed to you know, spend the money on food or trains etc... Ive been searching for answers but never found one.
yeah for grants you don't have to pay it back. If you don't have your bank account linked to your student portal (aka your OSAP doesn't automatically get applied to your tuition) then you're free to use your grant (it's just a question of how good you are at managing your personal finances at that point)
How do you pay your tuition in the beginning of course as osap comes much later (60 days before course end)?
The deadline is 60 days before the course ends but you can apply much earlier than that. For example, if I were to start school in September, I would apply during the summer (though the deadline is much later). In my case, I applied before my school year started and got funding in September. Sorry if I wasn't clear on that! Thanks for watching!
Thanks for clarifying..very helpful...i went to osap website..they are currently saying to come back in spring for academic year 20-21...my course is starting in sept 2020 at university of Toronto. I have 2 questions. 1. When will osap allow me to apply as right now the estimation tool is only giving results for acad year 2019-20 2. Will osap (grant+ loan) cover full tuition cost? Will be grateful if you can answer these. I have the capacity to repay immediately after my school is over (+grace period) and hence i want to take osap so that my outlay now is limited
Sorry to bother you so much. I know very less about osap
@@canadianhustlers I'm not so sure when you can apply for the next school year, I know that late June is the recommended date to have your documents in (so it should be soon if you're having trouble accessing the application. How much OSAP loans to you depends on a couple of factors. Your income and assets are a couple of factors (so it varies from student to student). For me, it was enough to cover the tuition costs. Also, have you applied for CERB?
@@canadianhustlers don't worry, it's a complicated system that not many people know of, I had links in the description for more details
So like, I dropped out but I don’t know what to do from here. I was two months in
aww dang, I hope you find something else to do in the meantime! if you're asking about OSAP, you'll be notified about what happens to your loan/grants.
@@Martin_Leung thank you 😊
Question; Can grade 11 apply for university loans ?
if you're *enrolled in university
What does it mean when the application asks for course load?
Hey! If you're 60%+ full course load then you're full time. Full time being 5 courses per term, hope that helps!
Martin Leung Thank you.
@@yunyinghuang7415 glad I could help!
is there any way I can obtain a scholarship to cover the cost of the ENTIRE program and graduate with NO debt? I would classify as a very low income student and I really do not want to get into debt, especially for post secondary education. My mom has a work disability and my total family income is only about 55,000 dollars yearly. Are there any actual scholarships that can give me upwards of $40,000.
Yes, you would have to look for these scholarships either on your school website or other scholarship websites for that! Another thing is bursaries, which are grants for disadvantaged students! Look into those and see what you can get!
@@Martin_Leung cheers boss
Best of luck!
Can I cancel OSAP application and reapply?
Hey, I'm pretty sure you're allowed to do it as long as you get it in before the due date!
U mentioned your parents paid for your education, then how did u receive the osap then? Don't they pay your uni directly?
My parents paid for my education (without the OSAP money), we can still get OSAP even if we don't use it to pay for the tuition directly with the grant/loan
lmk if you need more clarification
Does working part time, before osap, effect it
I can't say for sure, but I don't believe small earnings from working part time does much (you will probably still receive funds unless your family has sufficient income)
@@Martin_Leung thank you
HI .I have finished my course (Accouting ,Payroll &business A dministrator)in May this year.(MAY 1st 2020).de During the epidemic,i can not find job for me,and i need take care my child .so i want to continue my education take online in September,2020. I want to go to Seneca to continue my study.I want to apply General Arts - English for Academic Purposes (GEA) (Ontario College Certificate) ,Can i apply OSAP again September 2020?
Hi, you can apply for OSAP as long as you're enrolled in school (so yes!) Also, apply for CESB if you haven't yet! Good luck! Hope you can make ends meet! 😄
Martin Leung thank you for your help. But my accouting course already apply OSAP. I want to apply to osap September again. Can I?
@@jianweizheng1136 if the schooling is in a different term (Fall 2020 vs summer 2020) then you should be able to
Martin Leung it is different term. But it is same level certificate, and different program.
@@jianweizheng1136 should be fine as long as it is in a different term
Hello: Great and interesting idea.
So, now I got it; before to saw this video and I'm sad and scared.
Help me pls
OSAP offers grants too, right? And you dont need to repay those
yes, correct!
@@Martin_Leung if I am a Canadian citizen but I have never resided in Canada, I am not eligible for OSAP right? But I will be in my 2nd year of studies?
@@nadav6782 I believe you can get an appeal if you haven't lived in Ontario for a full year, look for OSAP contact info on their website
@@Martin_Leung okay thank you so much!
@@nadav6782 good luck!
I applied for repayment assistance every 6 months and i don't get charged interest. I also am in phase 2 so the goverment helps makes payments to my loans
good luck with your loan repayment! :)
Hey does the phase 2 impact your credit score negatively?
@@jaallick because i was not able to make regular payments to my loans for so many years. It was sent to collections amd i wasnt making any payments on that either for many years until i learned of the repayments assistance program. I wouls say for 5 or 6 years i either had no job or a job that paid very little so my repayment amount was zero and becauase for that amount of time i didnt make a single payment.... they put me in phase 2 where the gov paid off my interest and principal. So i have never made a payment and i just reply for RA every 6 months. They ask for proof of your paystub to prove your income. Your income will determine if you owe a payment on a monthly basis or not. For me my payment was determined to be 0 each month. For each person it's different. But I have never had to pay anything towards it in in 10 years.
@@tiinaiiceey thank you so much for the information.
Make the credit score video
alright! look forward to it in the coming weeks :) thanks for watching!
Hello martin i am a Canadian citizen living out of canada i've never been to canada before.I coming to western university next month i wanna ask you a question: are 3000$ enough for me to study and live in canada ??
there's a lot of information that I don't have to answer this question with (ie is your tuition paid, how much external funding you have, what your rent is). So if you only have $3000, then no (unless everything is paid already and $3000 is just for your personal expenses)
why would i pay off the debt if the stock market brings in 7% return and the interest rate is 3.5%. I can make money by not paying off the debt. now id be making a free 2.5% on the money if i just did the minimum payment.
Hey Ali, this is a good question. The 7% return of the stock market is an AVERAGE, there will be years where the market will be down 10%, 20%, maybe more (possibly for an extended period of time when the economy is poor.) On the other hand, the interest rate on the loan will pretty much be there all the way through. So if you were put in a situation where you happen to be strapped for cash when the economy is poor, then you may be forced to sell at a loss to pay an ever compounding amount of debt. You do make a fair point though, just make sure you have enough cash sitting around to make minimum payments almost indefinitely if you were to do this (I'd do this myself, since the market does return more than the interest on the loan.)
*forgot to mention, I said that it'd be fair for MOST students to pay off the loan because MOST people do not know to invest in the stock market and have a spending problem. If this is not you, and you save enough money, then you're fine using this loan as leverage. Hopefully that clears things up!
I got my osap funding, but it is significantly lower from my estimation. Is their a way to contact someone about this. My friends also have lower-than-expectation funding, why is that?
I don't think there is a way to contact someone about this. It's because estimates are estimates, I don't think there is any other particular reason. Hope that helps!
Martin Leung Thank you.
@@yunyinghuang7415 glad I could help!
Do I apply for osap or university first ?
university
you have a lot of time to apply for OSAP
good topic but the the background music is annoying
lol thanks
That's interesting, I want to save 💰 to buy lobster tails. I paid up my student loan in stone 10 years with 10.95% interest rate.
We're kind of lucky with how low interest rates are right now. Also, I'd rather you buy L LOL
oh, and how are we even going to cook that?
Martin Leung good idea. Can’t loss with L LOLOLOL