The OSAP 2010-2011 Loan Help Thread

[rmorelan]

TFSA is kinda pointless for students... we don't pay tax. Unless you have a hefty income, or you're a savvy investor that's able to make a significant return on $10000 (max contribution possible up to now).

 

True in most cases! They wonderfully never pay tax on the income generated and that is really powerful in the long run though. RRSPs only defer tax then don't get rid of the darn stuff - grrrr

 

I generally tried to max both but I am afraid I am a little crazy at saving - victim perhaps of the scottish stereotype

[shannn]

True in most cases! The wonderful never pay tax on the income generated in that is really powerful in the long run though. RRSP only defer tax then don't get rid of the darn stuff - grrrr

 

I general tried to max both but I am afraid I little saving crazy - victim perhaps of the scottish stereotype

 

I was thinking about a different race, lol

 

Argh, I'm so lazy, I still have to:

-apply for OSAP (will do it this weekend)

-get an LOC (umm, will probably do it just before I need to pay for school, lol)

-get my CPR-C (ahh, I hate CPR, I've taught it for so many years)

[rmorelan]

I was thinking about a different race, lol

 

That was perhaps the most grammatically horrible post I ever made. That's what I get for too much multi-tasking during a meeting on advanced applied math, and to think somehow I did manage a S on the WS sample

[spiderpig]

No just they RRSP I am afraid (as far I know). The osap people haven't caught up to the new savings regulations.

 

Can you move them into an RRSP?

 

Ahhh well. Thanks.

 

I could move them into an RRSP now, but it would be pointless for my OSAP application this year, since they count how much was in my bank accounts on May 15th or whatever. :-\

[rmorelan]

Ahhh well. Thanks.

 

I could move them into an RRSP now, but it would be pointless for my OSAP application this year, since they count how much was in my bank accounts on May 15th or whatever. :-\

 

Perhaps so - but it will at least help you in the future.

 

osap is one strange system but it is what it is I guess

[mattg]

My OSAP says that my account is on hold because UofT is in the process of sending them some numbers... I assume it says this for everyone (at UofT, at least)? Or has anyone from UofT actually received an amount (aside from an estimate) from OSAP? I ask because I hear everyone quoting numbers, but I spoke with someone in the financial office at UofT, and she said that the estimate is often not a good estimate for med students... and I'm hoping to get more than my estimate lol

[sobes74]

My OSAP says that my account is on hold because UofT is in the process of sending them some numbers... I assume it says this for everyone (at UofT, at least)

 

I'll be at UWO and it says this for me as well! It'd be nice to find out soon!

[mdfever]

Same for Mac students as well. It seems like an universal thing.

[mattg]

ok, so hopefully she was right and the estimators aren't always good estimates for med students...

[UTPEOPLE]

My OSAP says that my account is on hold because UofT is in the process of sending them some numbers... I assume it says this for everyone (at UofT, at least)? Or has anyone from UofT actually received an amount (aside from an estimate) from OSAP? I ask because I hear everyone quoting numbers, but I spoke with someone in the financial office at UofT, and she said that the estimate is often not a good estimate for med students... and I'm hoping to get more than my estimate lol

 

the osap calculator itself is fairly accurate (you will get what you see)... what the admissions person probably meant was that the estimated costs for med school are different from what osap says it is (38k for u of t vs 30k according to osap)

 

 

Quick question though... with regards to RRSP... so if you plan to buy 2000 of RRSP, does that mean you can deduct an equivalent amount from your summer income THIS year?

[TheEggman]

Quick question though... with regards to RRSP... so if you plan to buy 2000 of RRSP, does that mean you can deduct an equivalent amount from your summer income THIS year?

 

You can if you want to. Deducting RRSP contributions from income can either be done the year you contribute or they can be saved for later.

 

Unless you are making obscene amounts of money this summer its probably best to put the money into an RRSP and wait to claim it until you start making a large income, that way the RRSP deduction from your income will be worth more since you are deducting income from a higher tax bracket.

 

Also if you are a student of any kind, chances are that your tuition deduction and income level mean that you will be paying little if no tax. So using RRSP contributions to reduce your taxable income while you are a student is pretty useless as you can get back much more money if you wait until you are a few years out of school and earning a larger income.

[UTPEOPLE]

You can if you want to. Deducting RRSP contributions from income can either be done the year you contribute or they can be saved for later.

 

Unless you are making obscene amounts of money this summer its probably best to put the money into an RRSP and wait to claim it until you start making a large income, that way the RRSP deduction from your income will be worth more since you are deducting income from a higher tax bracket.

 

Also if you are a student of any kind, chances are that your tuition deduction and income level mean that you will be paying little if no tax. So using RRSP contributions to reduce your taxable income while you are a student is pretty useless as you can get back much more money if you wait until you are a few years out of school and earning a larger income.

 

true... but by claiming it in the upcoming tax year, can i claim 2000 less summer income on the OSAP app? cause then i save like 2000 in free osap money which i wouldnt get otherwise... better in the long run

[rmorelan]

true... but by claiming it in the upcoming tax year, can i claim 2000 less summer income on the OSAP app? cause then i save like 2000 in free osap money which i wouldnt get otherwise... better in the long run

 

how much are you making this summmer approx? The reason I am asking is my estimate is for the full amount and I am making quite a bit, and made a comparatively very high amount in the 2009 tax year (which ended Dec of course), and have income coming for next year as well.

[UTPEOPLE]

how much are you making this summmer approx? The reason I am asking is my estimate is for the full amount and I am making quite a bit, and made a comparatively very high amount in the 2009 tax year (which ended Dec of course), and have income coming for next year as well.

 

well... i still have max osap... but ill probably lose out on UTAPS... because my assessed need that is not met by OSAP would be lower...booo

[T. Funke]

I know this has been somewhat addressed before, apologies for the redundancy but I'm confused.

 

 

If I have contributed <2000$/year since graduating high school to an RRSP, does that mean that I DO NOT have to claim this money under the asset section on my OSAP?

 

When I click RRSPs tab for an explanation I get the following:

 

The total net value of RRSPs is the current market value (principal and interest) of all RRSP accounts less:

 

* funds (principal and interest) inaccessible under the Canada Pension Act, and/or

 

Is that why we don't have to claim the base amount of $2000/year post high school?

Thanks in advance for the help!

[rmorelan]

You know on the OSAP form when it asks when you last attended high school? One of the main reason for that is so they can compute your max RRSP limit. Also they want your RRSP in a different part of the application - it is not in the general asset pool. You do tell them what your RRSP current are worth - they then do the math. Same reason you tell them the value of your car separately - so they can subtract the limit on that as well if needed

 

 

 

I know this has been somewhat addressed before, apologies for the redundancy but I'm confused.

 

 

If I have contributed <2000$/year since graduating high school to an RRSP, does that mean that I DO NOT have to claim this money under the asset section on my OSAP?

 

When I click RRSPs tab for an explanation I get the following:

 

The total net value of RRSPs is the current market value (principal and interest) of all RRSP accounts less:

 

* funds (principal and interest) inaccessible under the Canada Pension Act, and/or

 

Is that why we don't have to claim the base amount of $2000/year post high school?

Thanks in advance for the help!

[T. Funke]

You know on the OSAP form when it asks when you last attended high school? One of the main reason for that is so they can compute your max RRSP limit. Also they want your RRSP in a different part of the application - it is not in the general asset pool. You do tell them what your RRSP current are worth - they then do the math. Same reason you tell them the value of your car separately - so they can subtract the limit on that as well if needed

 

Thanks, I appreciate the help.

[spiderpig]

I just did the Aid Estimator thing, and got a value of $13920. I think this is pretty low considering I'll be at 52-week Mac, but I guess it's the savings I have in my bank (about $10k).

 

I kept seeing this mentioned on this thread, but wasn't able to figure out what it actually was:

 

What is this special "grant" you guys are talking about that's given in addition to your OSAP?

[T. Funke]

I just did the Aid Estimator thing, and got a value of $13920. I think this is pretty low considering I'll be at 52-week Mac, but I guess it's the savings I have in my bank (about $10k).

 

I kept seeing this mentioned on this thread, but wasn't able to figure out what it actually was:

 

What is this special "grant" you guys are talking about that's given in addition to your OSAP?

 

 

It is the Ontario Student Opportunities grant, its purpose is to limit the amount of money you need to pay back to $7,300 for two terms or $10,950 for a three term year. So basically, as I understand it any money you get over and above these amounts is essentially free money;)

 

You look under the outstanding debt portion on the estimator to see how much OSOG subtracts and this is where I got additional info.

 

https://osap.gov.on.ca/OSAPPortal/en/A-ZListofAid/UCONT004230.html

[shannn]

Hey, before I press the submit button, I had a quick question

 

At the beginning of June, I paid back a loan (a significant amount). It significantly affects my assets (was a little unexpected) and will definitely affect my OSAP funding.

 

But on the OSAP form, it says to state assets as of the middle of May.

 

Do I have to list my assets in May and write a letter explaining the change of assets? Or list my assets now and explain why it is different from May? Or am I SOL?

 

TIA

[spiderpig]

It is the Ontario Student Opportunities grant, its purpose is to limit the amount of money you need to pay back to $7,300 for two terms or $10,950 for a three term year. So basically, as I understand it any money you get over and above these amounts is essentially free money;)

 

You look under the outstanding debt portion on the estimator to see how much OSOG subtracts and this is where I got additional info.

 

https://osap.gov.on.ca/OSAPPortal/en/A-ZListofAid/UCONT004230.html

 

Ohh, I see... I was hoping it was something in addition to that.

[discworldheavylight]

Gotta put those savings into RRSPs, doesn't count towards OSAP and you can wait until you're earning money to claim them and start getting taxes back.

 

Sorry, I'm gonna shoot off a bunch of questions.

 

1) Is it too late to transfer any bank assets to RRSPs for this OSAP cycle?

2) Don't RRSPs have to be reported as well? Does anyone know the cap on this amount?

3) Are RRSPs automatically set up by your employer or do you transfer these funds yourself? How do we know how much we have in our RRSP?

 

Thanks, I know these questions probably sound idiotic to most people.

[rmorelan]

Sorry, I'm gonna shoot off a bunch of questions.

 

1) Is it too late to transfer any bank assets to RRSPs for this OSAP cycle?

2) Don't RRSPs have to be reported as well? Does anyone know the cap on this amount?

3) Are RRSPs automatically set up by your employer or do you transfer these funds yourself? How do we know how much we have in our RRSP?

 

Thanks, I know these questions probably sound idiotic to most people.

 

No worries - officially you would be too late for this term as OSAP wants you to report what you had as of May 15. Not that they can actually check or anything. Not really related to OSAP but the government doesn't actually automatically know your banking history without a court order - it is a matter of privacy.

 

Yes RRSP do have to be reported, but they have their own section on the OSAP application. The cap would be 2000 dollars for each year after you last went to high school. For most people I guess that would be at least 8000 - that isn't to say you can put 8000 in there, only that is the amount that OSAP will let you. Your actually RRSP limit is computed by the federal government tax laws as I will get to next.

 

You set up your own RRSP - employers are more for things like pensions. There are limits to how much you can put in an RRSP. Generally the limit is 18% of your total earnings per year but the amounts carry over from past unfilled years. You can put up to that amount into your RRSP after that.

 

In the long run since doctors are private business owners mostly and thus don't have employer pensions (unless they create one for themselves) RRSPs are a pretty common vehicle to save for retirement. Overall limits are going up but it is around 18,000 max into an RRSP a year - for that you need to earn more than 100,000 with the 18% rule - which is trivial for a doctor. That would save you 9000 approx in tax that year.

[discworldheavylight]

^extremely helpful as always. thanks rmorelean.

[mattg]

No worries - officially you would be too late for this term as OSAP wants you to report what you had as of May 15. Not that they can actually check or anything. Not really related to OSAP but the government doesn't actually automatically know your banking history without a court order - it is a matter of privacy.

 

Are you sure about this? I'm guessing in one of the contracts (online and/or mail-in) you agree to / sign - the one's that no one ever bothers to read... or at least i don't lol - they probably mention something about having the right to check your account... or at least make you agree to send them a bank statement as of May 10, upon request...