Urgent Help needed - Post here! - On disability but may have 30yr old loan

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On disability but may have 30yr old loan

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Topic: On disability but may have 30yr old loan

Posted By: Crested
Subject: On disability but may have 30yr old loan
Date Posted: 09/April/2018 at 12:37pm

Hi I am on CPP and ODSP. I am unable to work. I got OSAP in the mid 1990s. I am not sure if my loan has been forgiven. I think that the federal portion may have been but it is my understanding that the Ontario portion has no statue of limitations. I recently filed income tax after not doing so for over 10 years at the request of a community agency. My understanding is that the funds owed to me (which are significant) will probably be taken by the Ontario portion of my loan. If I apply to have my loan forgiven due to disability, will I get back the money owed to me? Also if I apply to have the Ontario portion of the plan removed, will this mean that I have acknowledged the debt for the Canada portion of the loan? How long will it take to get the Ontario portion of the loan dismissed? Is it likely it will be a straightforward process for someone who has been on Disability for over 10 years? Do they sometimes deny people in similar situations? I am very concerned about this whole thing and am concerned that filing income tax and attempting to dismiss my loan will result in a huge, complicated mess. I'm sick and under enough stress already.

Replies:

Posted By: SolveStudentDebt
Date Posted: 11/April/2018 at 7:00am

Anything you do in respect of the Federal student loan with CRA Non-Tax Collections has no effect on anything outside of that jurisdiction. Same applies to OSAP.

If your Ontario loan is in active recovery. and not statute barred, then the rebate will be captured by the federal set-off program. If you appeal to the government to set aside your loan due to hardship, then the lien is removed, based on the removal from recovery.

If you file and happen to lose that rebate to the federal set-off program, and file an appeal to the MTCU for the removal of that loan due to hardship and it is approved, then you would have to make a separate appeal to them to return it (all or some) based on the need for it. If the government is satisfied then they can return all or some. Each case is unique. In a lot of cases though. They simply say "that money was applied before hand, so therefore not legally required to return it. Escalate your argument up the hill", or something to that effect.

My advice to you is if you are appealing to them for removal of the loan, simply dot every I, and cross every T. Don't state or file anything that you can prove or demonstrate.

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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Posted By: SolveStudentDebt
Date Posted: 11/April/2018 at 7:05am

Typo king strikes again. Don't state or fie anything that you CANNOT prove or demonstrate.

Posted By: Crested
Date Posted: 11/April/2018 at 7:16am

Thanks for your reply. I may have more concerns in future but your answer is very helpful

Posted By: SolveStudentDebt
Date Posted: 11/April/2018 at 7:20am

No sweat. Keep the chin up and ask questions, man.

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Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com