Jump to content
Premed 101 Forums

OSAP Funding Estimates


Guest PeterHill0501

Recommended Posts

Guest PeterHill0501

Note to moderators: I placed this post here as I'm looking for feedback from current students and I'm not sure whether they monitor the OSAP thread or not. If you feel this post is not appropriate for this thread please feel free to move it.

 

I was wondering whether any current students with OSAP could answer this question for me. I made a significant salary last year (100K+)...I also have significant expenses (in line with my salary...mortgage...child support...car...etc.). I am planning on returning to school this fall, should I get accepted into meds. When I filled out my OSAP form the estimate indicated I was eligible for $0...yes...0$. The only problem is when I return to school I really will need financial aid as I will be leaving my current career and I'll be living off of a line of credit. The OSAP application process seems to only take into account your income from the previous year up until the date you enter school. Does OSAP ever check what expenses you have...what actual disposable income you'll have upon returning to University? I have a feeling I'm SOL for this year (unfairly, in my opinion)...could anybody comment or provide me with advice on how to approach the subject with OSAP?

 

Peter

Link to comment
Share on other sites

Guest RAK2005

Peter,

 

When you apply over the web, it is just a formula they are using to calculate your funding, and hence no room for "negotiation". I would get in contact with financial aid and talk to their osap counsellors directly. Although 100K is significant, they MAY listen to your story and adjust your osap.

When we started meds we were given very low rate interest lines of credit pitches from the major banks (nimus TD). I believe that Royal or BOM may offer a 25K initial LOC to incoming meds at prime, with interest payable after the 4 years (which accumulates unfortunately :( ). Thus, you may be able to live off that and pay it down with OSAP the year after.

 

On whether you should fudge your OSAP, I would say that since you've ALREADY put down you made 100K on the initial form, it may raise red flags if you change that amount. Furthermore your spouses income also will be taken into account.

 

To really be useful (not that you're useless!) I would be designated as a dependent the next year under your wife. Transfer your tuition credits to her as some cost of living expenses and she should get a decent tax break as well. MD Management (mdm.ca/md/index.asp) has some good tips too. Worth checking out.

 

One last thing... most of my classmates who worked last year and/or have spouses with significant incomes WERE penalized by osap, which was unfortunate. However a few received bursaries which helped compensate.

Link to comment
Share on other sites

Guest PeterHill0501

Thanks RAK2005...

 

I don't think I remember saying I would "fudge" my osap numbers though...

 

I think it's a great idea to get in touch with the OSAP folks...would I contact University of Ottawa's Financial aid department?

Link to comment
Share on other sites

Guest RAK2005

Sorry about the fudge comment... I think I was still groggy when I wrote that part :)

 

As for who to contact, each school has their own OSAP departments (i.e. usually associated closely with the registrar's office and financial aid). Here's the link to U of O's financial aid:

 

www.uottawa.ca/students/f...index.html

 

Good luck !

Link to comment
Share on other sites

Guest PeterHill0501

Thanks again. I appreciate your help. I know what you mean about being groggy...I had quite a "fog" on this morning...a few too many martinis...I wish I could say it was from being on call...but, unfortunately or fortunately (depending on how you look at it) my fog was self-induced...dosing way above recommended levels!

 

Peter

Link to comment
Share on other sites

Guest Carolyn

Peter,

 

I would also encourage you to contact MD Management if you get in. They provide free financial counselling and are paid for by the OMA so they are pretty in touch with the challenges MD students face.

 

I also know of a number of people who were ineligible for OSAP -- they have relied on the Bank Line-of-credits (which will easily go above the $25K if it is necessary in your situation). As well some of the schools have fantastic bursaries - I know of a couple of people at Mac with "extended" circumstances who received well over $10K... so that could definitely be a question to ask schools if you have the opportunity to choose between schools in June.

 

best of luck with everything!

 

Carolyn

Link to comment
Share on other sites

Guest PeterHill0501

Thanks Carolyn.

 

Since my wife is a doctor I get free access to MD as well...they are an incredible resource. With respect to the line of credit...I have already arranged one with the Royal Bank...they had the best deal...prime plus one...125K line which can be extended further, if required. Having some sort of financial means to put myself through school was a definite requirement when I was considering this path.

Link to comment
Share on other sites

  • 2 months later...
Guest akhenaten1

Hi Peter, I think we are in similar positions (other than the fact that you have already been accepted to meds) in that I have looked at a number of alternatives to funding medical school. I too (if I get accepted for next year) will be leaving a fairly established career ( I am currently 30) and will likely not get OSAP the first year. Have you considered using the Lifelong Learning Plan ("LLP")? It is similar in nature to the First Time HomeBuyer's Plan and will allow you to withdraw from your RRSP up to $20,000 in total (however, a max of $10,000 per year is imposed) and it is generally repaid back into your RRSP (you don't get an additional deduction as it is merely a replacement of capital) over a 10 period. Also, the fact that you may currently be repaying under the HomeBuyer's Plan does not preclude the use of the LLP. The one thing you should remember is that there are restrictions in terms of when you can contribute to the plan and then withdraw under the LLP. I believe you need to leave the funds in for at least 90 days prior to withdrawal to get the full benefit of the RRSP deduction. Another option (if you do not have sufficient RRSP savings) is that I believe your spouse can withdraw from her RRSP to contribute towards your education under the LLP. For more information you can check out CCRA's (formerly Revenue Canada) guide RC4112 - I believe their general web-side is http://www.ccra.ca and you should be able to find it by doing a search for "lifelong learning plan".

 

I have also considered withdrawing funds (not under the LLP) directly from my RRSP to fund my med education. I am guessing that I will have very little income during those years thus the tax that I will have to pay on my withdrawals (as it is considered income to the withdrawee - n.b. RRSP withdrawals, other than under the LLP, are initially subject to 10% withholding which will be considered as tax paid when you complete your return for that year) will be very little compared to the tax that I would currently have to pay (approx. 47% if you are in the highest marginal tax bracket) on those same dollars.

 

I haven't fully thought this through but I think it works. Hopefully this is of some help to you.

 

p.s. are you attending this fall?

pp.s I was wondering if you would have time to discuss your experiences in applying as a mature student and the interviewing process. Let me know.

 

Tony

Link to comment
Share on other sites

Archived

This topic is now archived and is closed to further replies.

×
×
  • Create New...