OSAP Repayment Explained | 2021 OSAP Update
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- Опубликовано: 6 авг 2024
- Hey everybody, if you recently graduated from university this year, CONGRATZ 🎉🎉🎉
It's super exciting to start the next chapter of our life, but we still have some emotional and financial baggage... (OSAP). In this video, I will be explaining OSAP and answering frequently asked questions about OSAP.
2021 UPDATE:
The interest rate for the federal portion of the loan will be 0% until March 31st, 2023, and the prime rate is 2.45%, the lowest it has been in a while.
Timecode:
0:00 - Intro
0:45 - OSAP Explained
1:10 - Provincial Loan
1:30 - Federal Loan
1:43 - Grace Period
2:10 - Monthly Payments
2:35 - Lump sum payments for OSAP?
3:00 - Can I choose which portion of the loan to pay first?
3:29 - What will the federal Interest be in 2023?
3:56 - How does OSAP affect my taxes?
4:15 - How can I pay off OSAP faster?
4:40 - How often does the prime rate change?
5:10 - What if I can't afford to make the monthly payment
5:23 - What if I move to the states?
5:53 - Should I invest or pay off my OSAP?
8:20 - My thoughts / OSAP plan
9:30 - Outro
Instagram: nnmkhang
🎼Music:
www.youtube.com/watch?v=Q7Hjx...
www.youtube.com/watch?v=pdYJt...
Disclaimer:
I'm not a financial advisor and you should always do your own research when doing any type of investing.
Resources:
NSLSC Website: protege-secure.csnpe-nslsc.ca...
0% Federal Interest Rate: www.ctvnews.ca/canada/too-lit...
Grace period extension for small businesses or Nonprofits: osap.gov.on.ca/OSAPPortal/en/...
Loan repayment calculator: tools.canlearn.ca/cslgs-scpse...
Prime Rate history: www.icicibank.ca/personalbank...
Debt repayment calculator: www.youcandealwithit.com/borro...
Nice doc about Debt repayment vs Investing: www.dropbox.com/s/yxti09qre6e...
Tax Credit: www.canada.ca/en/revenue-agen...
Repayment Assistance plan website: www.canada.ca/en/services/ben...
You can in fact pay towards the federal or the provincial portion of your loan, but you need to talk to NSLSC directly and send them a cheque with a memo. You can talk to an agent at the NSLSC about it
Hey Kaelan!
Thanks for the comment, I didn't know that you could pay the loan like this, thanks for bringing it to my attention. I'm going to pin this comment so others can see!
This is exactly the information I came looking for. Thanks!
Yes, same here, I called them and you can pay the provincial part only to get off the interest charge, and wait until next year March 31, 2022, to pay the federal since it has 0% interest.
This is a great informative video!
This was a great video. Well done!!
Hello Erica and Rob,
Thank you for the comment! I appreciate it!
This video was super helpful and I love your editing style. cheers 💃
Hey,
Thanks for the comment I really appreciate it!
Awesome video 🤑 Appreciate your explanation and in my rant free money is never free.
Great video! Thank you for pointing out making a choice suitable for your mental health.
Thanks for the comment C. Williams !
From Alberta, graduated yay! This is good to watch. You are informative
Thanks for the comment Hope!
Keep it up, bud!
if you use stop losses to trade and make sure you dont lose profits and you CAN ALWAYS beat a loan interest % but this guy has a very good plan too and explains how its different for different people
Thank you for the video I am a new student and this helped me allot thank you !
Hey Danny, Thanks for the comment I really appreciate it! Glad you liked the video!
Thank you so much! My gf is in the same situation as you in the video (with different cost). This helps a lot.
Thanks for the comment Tony, I apprciate it!
Sooo helpful. I was so confused by the federal and Ontario portion of loans. Also, I graduated from UofT Mississauga!
Thanks for the message Elisa, UTM represent !
Nice video ❤ thank you
Thanks for the comment 🥰
very helpful. thank you.
Thank you for sharing, very helpful
Thanks for the comment Claudine I appreciate it!
Incoming freshman at Western with Ivey AEO. just doing my due diligence so I'm fully informed before I deal with loans. Great Video!
Thanks for the comment Atithi, good luck with Western! I heard it's a a great time!
I’m still a grade 12 student and not in uni yet! But I was curious how Osap worked :) thanks for this helpful video
Thanks for the comment! Good on you looking into this early !
BLESS YOUR SOUL
Thank you for the comment! I hope the video helped 🙂
i havent graduated but im taking a two year break...i just cant do online school. But i wanna start paying it off now
you can predict prime rates going up or down depending on inflation
Best video I seen on this topic! Just graduated as well and am planning to keep investing the money as long as the interest rate is so low. Question for you, how do I pay off my osap in a way that builds my credit score. I heard the CTFS credit card is the only one that you can use to pay off student loans. Do you have any tips on how to put the monthly osap payments on a credit card to build credit score?
Hi Ball is Life, thanks for the comment,
I haven't thought about putting your OSAP payments towards building your credit score that's a really good idea!
I'm going to be honest, I'm not very well versed in the credit building part of personal finance so I won't speak on that. I did however do a quick google search on the topic and it looks like paying your loan on time would positively impact your credit score.
Im sorry that I couldn't be more helpful with this :( I hope this link helps a bit.
www.consumer.equifax.ca/personal/education/credit-score/how-do-student-loans-affect-credit/
@@khangaroofinance No you have been a big help! Appreciate the link I did similar similar research last night. I have decided to pay monthly installments on time and in 2 years when I apply for low mortgage rates, I want to still have a very small amount left to pay (small debt to ratio is good for credit score) but not completely paid because a closed loan account reduces diversity of loan types (which is another factor in credit score). Let me know if theres seems to be anything wrong or could be added to this plan.
@@ballislife6483 Hi, Im in the same boat as you, timeline wise, So its hard for me to say that your plan is correct or incorrect since I have no experience with it. But it looks like you did your research, so it looks like you have a good grasp on your plan 👍
Thanks for the video!! I would like to know how the loan is divided into federal and provincial part ? Is there a general ratio?
Hi Pavithra! Thanks for the comment, I don’t know if there’s a general ratio. I think the government has their own way to determine the ratio, some of my friends have all federal, others have all provincial, and some ( like me ) have a mix.
Hope this helps!
graduated trent in 2015 and im heading back to school for Seneca in september
You and I would have graduated the same year, I think.
Thanks for the video!Do they deposit the Osap money into your personal Bank account or do they pay the school directly?
Hey Trey Trey, thanks for the comment!
Through year 1-3 osap deposited into my bank account but in year 4 they did it directly to my school reducing the amount I had to pay. I'm not sure what they're doing right now but you should be able to call and request either or!
@@khangaroofinance Hey thanks for the reply.Ok so they gave you the whole amount to your Bank account for Tuition and Books etc for each semester correct?
@@musicgrynd yeah they did it on a semester basis, hope that helps
@@khangaroofinance Absolutely!Thanks alot man,appreciate it!
Mine says in collections how to find the full repayment amount
Thanks for the helpful tips!
Q: I work fulltime on a minimum wage and I am single. I tried to enrol and I just got approved of 10k loan and NO Grant. Is that normal?
And is it better to have a full time job or cashjob, when trying to maximize Grant that you can have.
Thanks!
Hi Tomas,
Thanks for the comment! To be honest I dont know how OSAP calculates its grants, Iv had friends get all loans, other get all grants. I think that it also has to do with how much your program is and how much your parents make. I'd suggest giving them a call and asking them whatsup. Im sorry that I couldnt be more helpful :(
Can you make another video how to pay ossap at once using online banking
Hi brother.. nice video .. one question. Does credit score matters to get the load ?? Does it make any difference??
HI Harsha, Thanks for the comment! To be honest I have not thought about this circumstance but I have done some googling. Link: www.ontario.ca/page/osap-definitions#:~:text=what%20you%20owe-,Credit%20check,-If%20you%E2%80%99re%20older
Looks like if you are older than 22 and applying for OSAP the first time they will do a credit check. Under the age of 22, I think they only check your income.
Hope this helps!
@@khangaroofinance thank you so much for you help and time .. have a good one 👍 😊
Just to let you know, I was young when I went to school in Ontario. I then had two children and was raising both kids on my own. OSAP wanted the money back, but I could not afford to pay my rent, food for my family, and return my student loans, Monthly payments are calculated so that all student loans MUST be paid back between 20-25 years. However, if it takes you LONGER to pay that amount because you start a family, your spouse gets sick, you have to care for your parents, or whatever, you will be BANNED FROM EVER getting OSAP again. That means no Masters Degree, No PHD ever! Vote for a party that wants to do away or reduce tuition fees!
Graduated from Brock in spring 2020, wanting to begin investing but not sure if I should with my osap debt. Any thoughts?
Hi Brianna, thanks for the comment and congratulations on graduating!
I think that you can't go wrong if you decide to pay off your student loan or if you start investing.
The low interest rates means you would be paying a large amount into your principal rather than the interest but at the same time the best time to invest was yesterday.
You don't have to decide one way or another, you could do both! By paying more than the minimum of your student loan you decrease the amount of overall interest you pay. At the same time you can start contributing to your TFSA ( check out my video on that ) or RRSP accounts.
What's important is to figure out a goal that works for you and stick to it! Hope that helps lmk if you have any other questions.
@@khangaroofinance could you post links to your other videos about RRSP and TFSA?
It would help a lot. Thank you! Much appreciated
@@wallacerangel616 Hi Wallace!
Thanks for the comment. Here is the link to the video: ruclips.net/video/R-gx_slkISg/видео.html
@@khangaroofinance Hey thanks for a great video. I have a query regarding osap. Looking forward for your inputs::
Grants 23000
Loan 9000
Total 32000
Tuition fees 10000
Net I will receive is 13000 (grants- tuition fees). Or complete grant part 23000 is mine.
Hi I have a question so I have finished first year of uni and I am going into second year now but on my nslsc account it says estimated first payment date as November 2021 but I thought you don't have to start paying until 6 months after you have graduated so I was a bit confused regarding that
Hey Ahmad, thanks for the comment!
That happened to me while I was in school too because NSLSC views the summer as a non study period.
For me when I applied for OSAP when back to school it recognized that I was back in school so they removed that payment message.
Hope that helps!
To add, If you take a year off for internship you either have to:
A) apply for your co-op program or apply for an extended non payment period through the NSLSC
B) Extend your non payment plan by contacting NSLSC
Either way will work hope that helps
@@khangaroofinance thankyou that cleared my confusion and one more question can I start paying off my loan while I am studying or do I have to wait till I graduate
You can pay off your loan while in school, you don't need to wait until you graduate!
I graduated from McMaster, how about you?
What a coincidence! so did I!
@@brianchiu6272 No way what program???
Thats funny... you remind me so much like someone at McMaster lol ... Asians jks :xD
What did you study?
Thanks for the comment Oury, I studied Computer Engineering!
Is osap for Canadians only, can international students use osap
Hey Adekemi, Thanks for the comment! Unfortunatly OSAP is not avaliable for international students to my knowledge. I think that you could apply for finanical aid depending on what schools you are applying to.
OCAD University!
Thanks for the comment Chloe!
Kay Kay Uni
McMaster!
Thats awesome! What program?
@@khangaroofinance Commerce! Hbu?
@@zackchapman8777 Computer engineering!
hahaha, I owe a whopping $19,925.93 just for 1 year of school, oh how I love "school" 😢😭 so far I've only paid $188.75 😂.
buy BTC below 19k USD and sell above 40k USD lol