OSAP/NSLSC frustration

[NeuroD]

Not sure where to put this, but OSAP/NSLSC needs to start being less of a black box and more accessible/accountable.

I completed my application months ago. I have had no changes in my financial status. 3 weeks ago they final funding calculation was $18,000, which was supposed to be sent directly to the school. TODAY, nearly a week AFTER tuition was due, they sent me a notification that they've recalculated my funding to $0....uh?

What changed in the last 3 weeks? At least give me a heads up or "re-calculate" before tuition is due they can avoid late fees and interest, or find alternate funding (luckily I've got room on the LOC to absorb this)! At least contact students directly about that large of a change...I know have to find time during normal business hours while rotating on internal medicine, and go through at least 2 administrative loops just to talk to someone who can explain what happens/do something about it.

Sorry. Just need to vent.

[ArchEnemy]

48 minutes ago, PhD2MD said:

Not sure where to put this, but OSAP/NSLSC needs to start being less of a black box and more accessible/accountable.

I completed my application months ago. I have had no changes in my financial status. 3 weeks ago they final funding calculation was $18,000, which was supposed to be sent directly to the school. TODAY, nearly a week AFTER tuition was due, they sent me a notification that they've recalculated my funding to $0....uh?

What changed in the last 3 weeks? At least give me a heads up or "re-calculate" before tuition is due they can avoid late fees and interest, or find alternate funding (luckily I've got room on the LOC to absorb this)! At least contact students directly about that large of a change...I know have to find time during normal business hours while rotating on internal medicine, and go through at least 2 administrative loops just to talk to someone who can explain what happens/do something about it.

Sorry. Just need to vent.

Any reason why they would recalculate your funding? I had almost 8 years of OSAP and never had any issues. 

[rmorelan]

Not just recalculate but slam - nothing? That is a huge drop. They have to tell you why. 

[la marzocco]

I had that happen once when they flagged me for income discrepancy or whatever. But I got an email and a regular mail about the situation and why it dropped to 0. Then it got resolved and brought it back up to the estimated funding. 

[rmorelan]

1 minute ago, la marzocco said:

I had that happen once when they flagged me for income discrepancy or whatever. But I got an email and a regular mail about the situation and why it dropped to 0. Then it got resolved and brought it back up to the estimated funding. 

makes sense although it would be better if they said it was on hold or something rather than the heart stopping 0. I mean med students may actually have LOCs to cover drops but imagine students without such safety nets in place. It can really mess up your education. 

[brady23]

And Line of Credits have interest once you take out the money.

Poor of OSAP to do this. 

[NeuroD]

7 hours ago, ArchEnemy said:

Any reason why they would recalculate your funding? I had almost 8 years of OSAP and never had any issues. 

Nothing new happened. Last year they denied me for a while because they thought I used OSAP for during my PhD. When they realized I didn't, things went back to normal.

[NeuroD]

6 hours ago, rmorelan said:

Not just recalculate but slam - nothing? That is a huge drop. They have to tell you why. 

 

5 hours ago, la marzocco said:

I had that happen once when they flagged me for income discrepancy or whatever. But I got an email and a regular mail about the situation and why it dropped to 0. Then it got resolved and brought it back up to the estimated funding. 

 

5 hours ago, rmorelan said:

makes sense although it would be better if they said it was on hold or something rather than the heart stopping 0. I mean med students may actually have LOCs to cover drops but imagine students without such safety nets in place. It can really mess up your education. 

No explanation, no email, no regular mail.

I'll update you guys when/if I get an answer, incase anyone else has problems in the future. 

[rmorelan]

Just now, PhD2MD said:

 

 

No explanation, no email, no regular mail.

I'll update you guys when/if I get an answer, incase anyone else has problems in the future. 

go forth and good luck!

[NeuroD]

6 hours ago, rmorelan said:

 

 

5 hours ago, la marzocco said:

 

 

5 hours ago, rmorelan said:

 

[Let'sGo1990]

The website is atrocious. Someone should correct me if I'm wrong, but I don't even think they describe HOW to make a payment anywhere on their site.

Absolutely unacceptable for such a large, government run organization to have so many glaring deficiencies. 

[NeuroD]

Unfortunate update: I've reached the maximum number of weeks allowed for OSAP due to a sucky technicality. I want others to know about this in the future so they don't get trapped.

I did not use OSAP during the 5 years of my PhD, but I had interest free status because I was student. Those 5 years of interest free status counted as time as an OSAP recipient. Sucks because I wasn't carrying much OSAP debt, and only saved ~1000 in interest over the whole 5 years. Would have gladly paid that if I had known about this technicality.

Ah well. Not much I can do about it now. LOC to the rescue. Just would have been nice if they did this before tuition was due so I wouldn't have to pay late fees and interest.

[rmorelan]

5 minutes ago, PhD2MD said:

Unfortunate update: I've reached the maximum number of weeks allowed for OSAP due to a sucky technicality. I want others to know about this in the future so they don't get trapped.

I did not use OSAP during the 5 years of my PhD, but I had interest free status because I was student. Those 5 years of interest free status counted as time as an OSAP recipient. Sucks because I wasn't carrying much OSAP debt, and only saved ~1000 in interest over the whole 5 years. Would have gladly paid that if I had known about this technicality.

Ah well. Not much I can do about it now. LOC to the rescue. Just would have been nice if they did this before tuition was due so I wouldn't have to pay late fees and interest.

oh gezz that does suck - roll on I guess. I knew there was a limit - did they tell you want it was overall?

[NeuroD]

7 minutes ago, rmorelan said:

oh gezz that does suck - roll on I guess. I knew there was a limit - did they tell you want it was overall?

350 for normal peeps

400 for PhDers

 

[rmorelan]

8 minutes ago, PhD2MD said:

350 for normal peeps

400 for PhDers

 

well I am glad they gave you those extra 50 weeks to do a phd then ha

[NeuroD]

OSAP's PhD penalizing technicalities have left me with a strange financial question. Not sure if anyone has a good answer:

I reached the time limit for OSAP. That mean's I can't get OSAP. It also means that despite being enrolled in medical school, I don't qualify for interest free status. Stupid...but OK. What's really dumb is that interest has started to accumulate, BUT loan repayment hasn't officially started, so I can't apply for the repayment assistance plan to put the interest on hold until I "get a job". The RAP option will begin in February. I start residency in July. So I'm trying to figure out what the cheapest option is:

1. Leave the loan with OSAP, pay the higher interest (~6.3%?) until February, then apply for RAP, which presumably only last until I start residency in July. Then switch the loan to BNS (~3.55%).
2. Switch to BNS right now, forgo the potential savings a few months of RAP and also the extra cost of the higher interest rate.
3. Something else completely? Is my understanding of RAP accurate? For context, me and my wife are both students. She still qualifies for OSAP and her program will last 1 year into my residency.

[la marzocco]

1 hour ago, PhD2MD said:

OSAP's PhD penalizing technicalities have left me with a strange financial question. Not sure if anyone has a good answer:

I reached the time limit for OSAP. That mean's I can't get OSAP. It also means that despite being enrolled in medical school, I don't qualify for interest free status. Stupid...but OK. What's really dumb is that interest has started to accumulate, BUT loan repayment hasn't officially started, so I can't apply for the repayment assistance plan to put the interest on hold until I "get a job". The RAP option will begin in February. I start residency in July. So I'm trying to figure out what the cheapest option is:

1. Leave the loan with OSAP, pay the higher interest (~6.3%?) until February, then apply for RAP, which presumably only last until I start residency in July. Then switch the loan to BNS (~3.55%).
2. Switch to BNS right now, forgo the potential savings a few months of RAP and also the extra cost of the higher interest rate.
3. Something else completely? Is my understanding of RAP accurate? For context, me and my wife are both students. She still qualifies for OSAP and her program will last 1 year into my residency.

I would pay the higher interest and apply for RAP since they cover your interest payments during Stage I of RAP. You can also claim interest paid on student loans in the interim as a tax credit which lowers the effective interest rate on OSAP down to about 5.5% (depending on your tax bracket) so the diff between LOC and OSAP is not as big as the apparent numbers. 

Can you speak more to a OSAP/NSLSC agent? I feel that your case merits specific treatment given these specific circumstances. You are still in school and should not be forced to pay interest. That just doesn't make sense.

[NeuroD]

8 minutes ago, la marzocco said:

I would pay the higher interest and apply for RAP since they cover your interest payments during Stage I of RAP. You can also claim interest paid on student loans in the interim as a tax credit which lowers the effective interest rate on OSAP down to about 5.5% (depending on your tax bracket) so the diff between LOC and OSAP is not as big as the apparent numbers. 

Can you speak more to a OSAP/NSLSC agent? I feel that your case merits specific treatment given these specific circumstances. You are still in school and should not be forced to pay interest. That just doesn't make sense.

Would RAP expire in a few months when I start residency? Do residents typically qualify for RAP?

[la marzocco]

6 minutes ago, PhD2MD said:

Would RAP expire in a few months when I start residency? Do residents typically qualify for RAP?

Stage I of RAP: The Government of Canada and your provincial government will pay the interest owing that your revised payment does not cover. This may last for up to 10 six-month periods or 60 months during the 10-year period after you leave school. 

There are certain thresholds for income levels (see below). There is also a RAP estimator which you probably have come across in your googling, but just in case: http://tools.canlearn.ca/cslgs-scpse/cln-cln/rae-ear/rae-ear-1-eng.do. You should insert your specifics and see. I imagine you would at least qualify for 2019 since you start residency in July and you would be around the $39,052 threshold. 

Annual Gross Family Income Thresholds for Zero Payment under RAP by Family Size

Family Size	Income Threshold
1	$25,000
2	$39,052
3	$50,457
4	$59,512
5+	$67,825

Above these income thresholds, you may be eligible for a reduced monthly payment.

[NeuroD]

9 hours ago, la marzocco said:

Stage I of RAP: The Government of Canada and your provincial government will pay the interest owing that your revised payment does not cover. This may last for up to 10 six-month periods or 60 months during the 10-year period after you leave school. 

There are certain thresholds for income levels (see below). There is also a RAP estimator which you probably have come across in your googling, but just in case: http://tools.canlearn.ca/cslgs-scpse/cln-cln/rae-ear/rae-ear-1-eng.do. You should insert your specifics and see. I imagine you would at least qualify for 2019 since you start residency in July and you would be around the $39,052 threshold. 

Annual Gross Family Income Thresholds for Zero Payment under RAP by Family Size

Family Size	Income Threshold
1	$25,000
2	$39,052
3	$50,457
4	$59,512
5+	$67,825

Above these income thresholds, you may be eligible for a reduced monthly payment.

For others who may be in the same situation this:

I called NSCLSC and had it confirmed that because I reached the max number of weeks: 1) I cannot receive any more OSAP, 2) my loan must start accumulating interest, AND 3) I cannot even request to voluntarily enter the repayment period (which would allow me to apply for RAP). Strange combination of policies.

The only way around it is the request an extension on the max number of OSAP weeks. Normally, they do this for people to complete their PhD. So had I done my MD, then PhD, it would be straight forward. It's not clear whether I will get the same treatment because I did things the other way around (PhD then MD). Either way, my appeal is submitted, and I'll update you guys when I hear back!

[Joe123]

9 hours ago, PhD2MD said:

OSAP's PhD penalizing technicalities have left me with a strange financial question. Not sure if anyone has a good answer:

I reached the time limit for OSAP. That mean's I can't get OSAP. It also means that despite being enrolled in medical school, I don't qualify for interest free status. Stupid...but OK. What's really dumb is that interest has started to accumulate, BUT loan repayment hasn't officially started, so I can't apply for the repayment assistance plan to put the interest on hold until I "get a job". The RAP option will begin in February. I start residency in July. So I'm trying to figure out what the cheapest option is:

1. Leave the loan with OSAP, pay the higher interest (~6.3%?) until February, then apply for RAP, which presumably only last until I start residency in July. Then switch the loan to BNS (~3.55%).
2. Switch to BNS right now, forgo the potential savings a few months of RAP and also the extra cost of the higher interest rate.
3. Something else completely? Is my understanding of RAP accurate? For context, me and my wife are both students. She still qualifies for OSAP and her program will last 1 year into my residency.

It really depends on the outstanding loan that you currently have. You may have to do some calculations to determine what's the best option for your family.

[NLengr]

This thread reminds me how much I love the government and bureaucracy.

[NeuroD]

Final update: no extension granted. Had I done my MD then my PhD (as opposed to the other way around), they would have extended it. Arbitrary...but I can't do much about it.

I'm thinking of leaving my loans in OSAP until residency BC I (perhaps mistakenly) was told that OSAP enters intetest-ftee status during residency. Is this true? If so I hope I'm not disqualified from that as well.

[rmorelan]

13 minutes ago, PhD2MD said:

Final update: no extension granted. Had I done my MD then my PhD (as opposed to the other way around), they would have extended it. Arbitrary...but I can't do much about it.

I'm thinking of leaving my loans in OSAP until residency BC I (perhaps mistakenly) was told that OSAP enters intetest-ftee status during residency. Is this true? If so I hope I'm not disqualified from that as well.

unless something has changed  it doesn't unfortunately enter interest free status in residency - you are considered working etc and enter if you haven't already repayment status. The good news I suppose is you arent that far off from when you would have had to deal with repayment anyway (or move it to the LOC). There is that program of course to stay in the province for interest free status but that is completely separate and an entire discussion on giving up mobility for interest payments ha would have to be had. 

Edited December 16, 2018 by rmorelan

[Bookmark311]

35 minutes ago, PhD2MD said:

Final update: no extension granted. Had I done my MD then my PhD (as opposed to the other way around), they would have extended it. Arbitrary...but I can't do much about it.

I'm thinking of leaving my loans in OSAP until residency BC I (perhaps mistakenly) was told that OSAP enters intetest-ftee status during residency. Is this true? If so I hope I'm not disqualified from that as well.

Unfortunately, it accumulates interest at about 6 or 7% but I will be transferring mine to LOC which has a lower interest of 3%