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worldfamous
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Topic: will i qualify for debt reduction? Posted: 30/November/2004 at 5:49am |
I last applied for a student loan in 1998 for a 2 year course. I finished school in april of 2000 and started paying back the loan in November of 2000.
I am currently going back to school, but am paying for the tuition myself.
I was wondering if i would qualify for debt reduction in 2005?
One of the stipulations state that
- five years has passed since you last attended a post-secondary institution;
Does this apply even thought im paying for the schooling myself and am not using a student loan?
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momof2
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Posted: 30/November/2004 at 8:05am |
im guessing the bank will try and screw you here, famous, and make you wait five years form when you finish your current course. try asking your lender, though, or whoever holds your original loan.
let us know how it goes.
anyone else have a definitive answer for this one ?
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kwelmm
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Posted: 30/November/2004 at 8:51am |
What is this debt reduction???? Does it apply if your loans have gone to collections?
Where was I when all this came around?
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momof2
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Posted: 30/November/2004 at 9:57am |
you cant apply for debt reduction if you are in collections
makes no sense i know, but yet another example of how the government screws over the people who need help the most
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kwelmm
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Posted: 30/November/2004 at 12:32pm |
Oh , oh well...not quick enough to be in the know..timing is everything!!!
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Pigeon
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Posted: 01/December/2004 at 4:38am |
Here's a question sports fans....If you're OSL is sent back to the government by the CA and you are paying the government monthly, are you then eligible for debt reduction?
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momof2
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Posted: 01/December/2004 at 7:09am |
To be considered for this program you must meet the following eligibility requirements:
- You have signed a consolidated loan agreement for your Ontario Student Loan(s).
- You currently reside in Canada. For purposes of this application, individuals who are Canadian Military personnel stationed abroad and individuals participating in an international internship program are considered to be residing in Canada.
- You have exhausted all interest relief assistance available from the Government of Ontario.
- You are NOT in default on your Ontario Student Loan(s). If you are in default on your Canada Student Loan(s) and/or other provincial student loans, you may continue to be eligible.
- You are no longer a full-time student for at least 60 months before applying for this program.
- You have waited one year before applying for a second or a third debt reduction in repayment from the Government of Ontario.
- You have not already received three payments through the Ontario Debt Reduction in Repayment program.
- You are not restricted from receiving OSAP assistance.
- You are not considered ineligible for an Ontario DRR payment (e.g., due to misrepresentation or conviction of a criminal offence relating to a student loan(s).
- Your total monthly student loan payments are greater than the monthly payment amount in the DRR Monthly Income Table corresponding with your family size and gross monthly family income.
If you are in receipt of federal Debt Reduction in Repayment, it does not effect your eligibility for consideration under the Ontario Debt Reduction in Repayment.
from http://osap.gov.on.ca/eng/not_secure/DRR.htm#Eligibility%20a nd%20Conditions
so i guess that would be a big NO
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momof2
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Posted: 01/December/2004 at 7:10am |
unless you can get your loan back to good standing with the government.
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CELYN
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Posted: 01/December/2004 at 3:31pm |
Hi,
RE: Ontario Debt Reduction in Repayment
Eligibility: "You have exhausted all interest relief assistance available from the Government of Ontario."
Does anyone here know if this means 30 months of interest relief or 54 months? Thanks.
The reason I ask is because I've exhausted 54 months of CSL interest relief so it's not a problem since CSL requires 30 months exhaustion. This statement seems to suggest 54 because it mentions "all interest relief available from Government of Ontario."
I've only used 53 months of OSL interest relief. Strange because my applications were always in sync with my CSL interest relief. Then one day the government changed my approval period and I'm one month off. I just let it go and applied for 6 months each after that. It threw off my CSL and OSL applications. After this change, I had to call twice for applications and also pre-screened twice. One month for CSL and the next month for OSL. It sure was a pain in the neck!
If it's 54 months and I'm short 1 month could I appeal you think? If so how do I do it?
BTW, I think it means 30 months. I hope it doesn't mean 54 months. If someone knows please reply as this is giving me a headache.
celyn
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momof2
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Posted: 01/December/2004 at 4:59pm |
celyn
i had to go the full 54 months before they would even let me apply for DRR. i did ask at 30 months and was told that it wasnt available to me. from above...
You are no longer a full-time student for at least 60 months before applying for this program.
you could appeal it, though. you never know.
kep us posted, though.
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CELYN
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Posted: 01/December/2004 at 5:28pm |
momof2,
I've been out of school for at least 5 years. The question is whether you need to use up all 30 months or is it 54 months of interest relief.
They have 2 interest relief as you know. The regular 30 months of interest relief and the extended interest relief of 24 months.
I'll call CIBC National Student Centre but last I spoke with them they haven't got the guidelines regarding Ontario debt reduction.
It's very frustrating with all these govt. rules.
celyn
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momof2
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Posted: 02/December/2004 at 1:38am |
celyn
you can print the app from the OSAP website, but it does say to speak to your original lender if you have any q's. hope you can get a break on this one.
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administrator
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Posted: 02/December/2004 at 4:13am |
It would be 54 months of interest relief. Ontario offers 54 weeks therefore you must use up the 54 weeks before you can get Debt Reduction...
And you can not go to school during the 5 years, part-time or full-time, even if you are paying for it yourself. Stupid rule!
Mark
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CELYN
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Posted: 02/December/2004 at 3:00pm |
Thanks for the replies. I'll call and see what they can do regarding my 53 months of interest relief.
celyn
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CELYN
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Posted: 02/December/2004 at 3:21pm |
admininistrator,
You made a typo - it's 54 months not 54 weeks.
Anyway, the reason I'm confused is about the interest relief is because CSL also offers 54 months, same as OSL. However, the letter regarding debt reduction I was sent by my financial institution stated at least 30 months of CSL interest relief must be used in order to apply for interest relief.
Hence I assume the OSL would be the same. Although a total of 54 is available, only a minimum of 30 months is required.
Also, I believe they have changed the rules to allow people to use 30 months of interest relief beyond the 5 year after leaving school. Perhaps they meant people have to use all 30 months to qualify.
Their usage of "all interest relief" might mean the first 30 months. They do have a different term for the other 24 months which is "extended interest relief."
Again, thanks to all who replied. I'll call and find out and try to sort out this mess with my 53 months of interest relief.
celyn
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CELYN
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Posted: 02/December/2004 at 4:19pm |
I forgot to include these:
- from the OSAP and other websites all mentioned interest relief's maximum period is 30 months. Only if you are still unable to pay then you apply for extended interest relief (within 5 years of leaving school.) So I'm thinking they mean it's 30 months?
- I've googled and found out some websites mentioning the CSL and OSL are interest relief and repayment are being integrated and basically the guidelines will be similar, with a few exceptions.
I'll be back to update you all whether it's 30 months or not.
P.S. The rule about resetting the clock if you go back to school sucks. I don't see why the clock should be reset since you are not getting more student loans to go back to school. Makes
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CELYN
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Posted: 02/December/2004 at 4:20pm |
no sense whatsoever.
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CELYN
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Posted: 03/December/2004 at 2:25pm |
I spoke with the person in charge of debt reduction at my financial institute and was told it looks I would qualify if I have used up 53 months, and to print application from website and send it in.
It seems they still don't have the guidelines for Ontario Debt Reduction from the government.
celyn
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nago
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Posted: 06/December/2004 at 4:46pm |
nope u didnt exhaust interest relife and bridgin'
but it doesnt say anything about being a student as a req for interest relief
so i assume you would have to apply and exhaust 30 months ir and then 24 more months bridging
As long as you apply for and exhausted the 54 months then i would assume so
But you raise an important question can u get ir while in school on previous loans?
and if so
can u apply for ddr?
Edited by nago
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worldfamous
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Posted: 06/December/2004 at 4:55pm |
I wrote the student loans people and this was they're response.
Good morning.
To qualify for Debt Reduction you must be in receipt of student loan funding from at least August 2002 onward. Based on the information provided in your e-mail you do not meet the criteria.
Please contact our office should you have any further questions.
(refer back to the first message in this thread)
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