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Osap Bank Balance


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that pretty much sums up what we all will be doing for our entire lives from a tax point of view (tax avoidance). Maximizing gain within what ever the rules actually are. It is expected after all - that is what the rules are for actually. 

 

side note RRSP is a form of tax deferral. If you point the money in your RRSP now when you income is low, your tax savings immediately if you use the credit would be very low as well due to the fact you are in a low marginal tax bracket (you basically are paying percentage wise a low amount or even nothing for income tax). When you withdraw it oh say 40 years or so from now you won't be in a low marginal rate after a long career in medicine. You will be in a high one. There is a balancing effect there (so pro tip - do not use the RRSP tax credit until later, much later, as in when you are a staff etc. you are allowed to defer it)

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I actually cannot find anywhere on my OSAP app that asked for my bank balance. It does ask for my expected income in the 16 week pre-study period, but that is it.

 

So should I make an attempt to temporarily funnel my money over to my parents? Or is there nothing to worry about.

 

And I should mention that OSAP already sent me their official funding estimate.

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I actually cannot find anywhere on my OSAP app that asked for my bank balance. It does ask for my expected income in the 16 week pre-study period, but that is it.

 

So should I make an attempt to temporarily funnel my money over to my parents? Or is there nothing to worry about.

 

And I should mention that OSAP already sent me their official funding estimate.

^This

I always thought that OSAP wasn't allowed to look in your bank account. Plus, my financial advisor told me not to list money in my chequing account as an asset for OSAP because it doesn't appreciate in value.

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  • 8 months later...

Bumping an old topic... did anyone ever get the answer to this question? I'm in a similar situation... have some money from my grad stipend saved up in a savings account but don't want OSAP to give me less money cause of it.

 

hasn't changed - it is still an asset and such be listed by the rules. Nothing special about a bank balance - it is just like any of the other assets that aren't protected.

 

OSAP is just another form of social assistance - I really thing that point is forgotten - and like most if not all forms of social assistance there is a means based test attached. Too much income, or too many assets and you are dinged. There are so many ways is applied unfairly but there it is.

 

Now that doesn't mean most people include it or that they find out the balance - but by the rules yes it is an asset and should be listed.

 

I was make a point that it is important all the pressures associated with maxing out OSAP and temptations with the failing to report things, because later one we are all going to run into a lot of people for a variety of reasons in our practise trying to do the same thing on social assistance - often just to simply survive and have even minimal comforts. I have already heard the same people that hid significant assets in medical school complain about people on disability doing the same thing. That is hypocrisy (and worse they did it knowing eventually they would have a good income. People on ODSP often never will get out their current situation).  You don't get to complain about your tax dollars being wasted as much when you in fact "wasted" money similarly - someone is paying for those OSAP bursaries. Anyway this the one and only time most med students will encounter something like this personally, and I think it an important lesson as a result (doesn't mean we should ignore people cheating the system - just humanizes some parts of it a bit).

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hasn't changed - it is still an asset and such be listed by the rules. Nothing special about a bank balance - it is just like any of the other assets that aren't protected.

 

OSAP is just another form of social assistance - I really thing that point is forgotten - and like most if not all forms of social assistance there is a means based test attached. Too much income, or too many assets and you are dinged. There are so many ways is applied unfairly but there it is.

 

Now that doesn't mean most people include it or that they find out the balance - but by the rules yes it is an asset and should be listed.

 

I was make a point that it is important all the pressures associated with maxing out OSAP and temptations with the failing to report things, because later one we are all going to run into a lot of people for a variety of reasons in our practise trying to do the same thing on social assistance - often just to simply survive and have even minimal comforts. I have already heard the same people that hid significant assets in medical school complain about people on disability doing the same thing. That is hypocrisy (and worse they did it knowing eventually they would have a good income. People on ODSP often never will get out their current situation).  You don't get to complain about your tax dollars being wasted as much when you in fact "wasted" money similarly - someone is paying for those OSAP bursaries. Anyway this the one and only time most med students will encounter something like this personally, and I think it an important lesson as a result (doesn't mean we should ignore people cheating the system - just humanizes some parts of it a bit).

Great posts as usual. 

 

Have come across this with many of my classmates in informal conversations. Its a bit disheartening actually. Especially the ones who hid alot of assets, or the fact that their parents paid for everything etc etc...and then got very large bursaries from the university. While those of us who have worked for a long time and much more independent, got much less for being honest.

 

When you get 10-15K+ in bursaries...but then go ahead and spend most of that on a euro trip or a new car(though i think this will bite them in the behind)... you definitely didn't deserve that large bursary.

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Great posts as usual. 

 

Have come across this with many of my classmates in informal conversations. Its a bit disheartening actually. Especially the ones who hid alot of assets, or the fact that their parents paid for everything etc etc...and then got very large bursaries from the university. While those of us who have worked for a long time and much more independent, got much less for being honest.

 

When you get 10-15K+ in bursaries...but then go ahead and spend most of that on a euro trip or a new car(though i think this will bite them in the behind)... you definitely didn't deserve that large bursary.

This kind of thing frustrates me so much. 

Filling out admission bursary apps, I've come to realize that having worked 3 jobs this year to pay for the applications/travel, and needing to work full time+ this summer to pay rent/pay off my visa from paying a deposit to one school already, I'll have ~18K income this year. Which, compared to my wealthy peers who didn't work during school, and maybe even managed to afford rent in the summer without working, who will have 0 income, means I'll qualify for much less bursary/govenment loans than these people. Despite that my parents can't afford to help me and make less combined than say, a teacher would. 

 

So compared to peers who don\t even need to work, it seems like my working will force me to put more of med school on an LOC, putting me even further behind, while richer peers get to enjoy more bursaries/OSAP grants because our bursaries/loans are now contingent on personal income, rather than parents

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hasn't changed - it is still an asset and such be listed by the rules. Nothing special about a bank balance - it is just like any of the other assets that aren't protected.

 

OSAP is just another form of social assistance - I really thing that point is forgotten - and like most if not all forms of social assistance there is a means based test attached. Too much income, or too many assets and you are dinged. There are so many ways is applied unfairly but there it is.

 

Now that doesn't mean most people include it or that they find out the balance - but by the rules yes it is an asset and should be listed.

 

I was make a point that it is important all the pressures associated with maxing out OSAP and temptations with the failing to report things, because later one we are all going to run into a lot of people for a variety of reasons in our practise trying to do the same thing on social assistance - often just to simply survive and have even minimal comforts. I have already heard the same people that hid significant assets in medical school complain about people on disability doing the same thing. That is hypocrisy (and worse they did it knowing eventually they would have a good income. People on ODSP often never will get out their current situation).  You don't get to complain about your tax dollars being wasted as much when you in fact "wasted" money similarly - someone is paying for those OSAP bursaries. Anyway this the one and only time most med students will encounter something like this personally, and I think it an important lesson as a result (doesn't mean we should ignore people cheating the system - just humanizes some parts of it a bit).

Thanks for your reply. I am not trying to hide my assets, just trying to figure out how OSAP works exactly. I owe my family some money for tuition and likely won't have enough to pay for med, so just trying to plan accordingly. 

That's unfortunate that some students are complaining about patients on disability. It's really not fair to those who actually require assistance. 

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Thanks for your reply. I am not trying to hide my assets, just trying to figure out how OSAP works exactly. I owe my family some money for tuition and likely won't have enough to pay for med, so just trying to plan accordingly. 

That's unfortunate that some students are complaining about patients on disability. It's really not fair to those who actually require assistance. 

 

wasn't trying to say you were :) Only trying to point out the realities of the situation.

 

If you owe money to your family your first solution is perhaps obvious - immediately pay them back reducing your assets to 0 if possible. Alternatively you can claim (as you owe your parents money) that the cash in question was from them - they did loan you money for your studies. If so by osap rules you can exclude that amount as by their rules:

 

Do not report assets or savings that are from the following sources:

money your parents or spouse transferred to you as their financial contribution to your studies (among others)

 

osap lets you do that as they take into consideration your parent's income in computing osap. Punishing you for them actually doing it would be double dipping.

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This kind of thing frustrates me so much. 

Filling out admission bursary apps, I've come to realize that having worked 3 jobs this year to pay for the applications/travel, and needing to work full time+ this summer to pay rent/pay off my visa from paying a deposit to one school already, I'll have ~18K income this year. Which, compared to my wealthy peers who didn't work during school, and maybe even managed to afford rent in the summer without working, who will have 0 income, means I'll qualify for much less bursary/govenment loans than these people. Despite that my parents can't afford to help me and make less combined than say, a teacher would. 

 

So compared to peers who don\t even need to work, it seems like my working will force me to put more of med school on an LOC, putting me even further behind, while richer peers get to enjoy more bursaries/OSAP grants because our bursaries/loans are now contingent on personal income, rather than parents

 

design any system and people will work to maximize their return in it. The best solution is to understand the system so you can work within the rules to obtain the best benefit you can. It isn't just because they were "rich"  that they obtained the benefit (in theory their parent's income many have reduced their osap for instance in their UG at least). Often it is simply the the rich have greater access to both knowledge and the flexibility to use it.

 

anyway that is why the forum is here - to try where possible to equalize the knowledge.

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MD Financial advisor.

 

I have to say that is rather surprising.

 

These are the only assets you do not report:

Do not report assets or savings that are from the following sources:

  • money your parents or spouse transferred to you as their financial contribution to your studies
  • Registered Education Savings Plans (RESPs) and trust funds
  • Registered Disability Saving Plans (RDSPs)
  • Registered Retirement Savings Plans (RRSPs) and other retirement accounts
  • the value of your principal residence and any other owned real estate
  • clothing, furniture or personal belongings
  • non-economic loss and/or pain and suffering awards
  • savings through the Ontario Child Benefit Equivalent program
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design any system and people will work to maximize their return in it. The best solution is to understand the system so you can work within the rules to obtain the best benefit you can. It isn't just because they were "rich"  that they obtained the benefit (in theory their parent's income many have reduced their osap for instance in their UG at least). Often it is simply the the rich have greater access to both knowledge and the flexibility to use it.

 

anyway that is why the forum is here - to try where possible to equalize the knowledge.

It's not only a matter of understanding the system-this summer I would have no choice in working full time, whereas those who can reply on some finacial support (or at least have parents able to support them living at home rent-free), have 0$ income and thus get higher bursary compared to those who must work full-time in the summer prior to starting school. 

That's the part that just isn't right, in my opinion. Goverment loans/bursary assistance shouldn't be reduced because someone needs to work and support themself

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  • 2 months later...

Do you have to report funds in a TFSA for OSAP?

 

Yes. This is indicated in the app where it asks you to list the value of other assets that you possess. When you click on the little help icon that explains what 'other assets' means, it will show you a list where TFSA is present.

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  • 5 weeks later...

I've been saving for the past 4 years and just have enough to pay for first year's tuition. By the time I actually start med, I'll have $0 in my bank, save for my LOC (and still have to pay for housing). But as OSAP looks at income/bank balance for the previous 16 weeks, I was wondering if they would take into account the money I just spent on school fees and the reduction of my bank balance when calculating the funds they will grant.

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