Student Awards

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OFFICE OF THE UNIVERSITY REGISTRAR

Student Awards

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OSAP Appeals

Bankruptcy Reviews

Several factors are considered to determine whether a student may be eligible for further OSAP funding, including the following:

  • Whether or not the student received student loans prior to filing the bankruptcy or related event;
  • Whether the student was released from the obligation to repay student loans. Bankruptcy legislation has changed several times since the late 1990s in terms of how soon after completing studies student loans may be included in the claim;
  • Whether the bankruptcy is discharged or undischarged and if undischarged, whether Ontario or Canada is a creditor.
  • Whether the bankruptcy or related event occurred within three years of the current study period and student was continuously enrolled in the same program of study.

Bankruptcies and/or Consumer Proposals or other related-events filed outside of Canada are not considered for review.

Bankruptcy and related events reviews are Ministry of Advanced Education and Skills Development authority in order to ensure that student files are being reviewed per current OSAP policies and in keeping with legislation that was in effect at the time of the bankruptcy-related events, etc. Students’ prior OSAP funding history must be reviewed in conjunction with the date the student filed for Bankruptcy or related event.

a) Documentation required for bankruptcy reviews:

Copy of the Notice of Bankruptcy.

If Bankruptcy is discharged:

  • Copy of the Certificate of Discharge OR
  • Copy of paid in full letter OR Order of Absolute Discharge from the Courts; OR.
  • Bankruptcy and Insolvency Records Search Extract from Superintendent of Bankruptcy.

If Bankruptcy is undischarged:

  • Student must provide a letter from their Trustee indicating the date they filed for bankruptcy or initiated a related event and that the following two conditions have been or will be met:
  • Neither Ontario nor Canada is a creditor in the Bankruptcy or related event as a result of financial assistance given to them through OSAP;
  • No financial assistance given to them through OSAP in the 2015-2016 year (August 1, 2015 to July 31, 2016) will be seized to repay any creditor(s) listed in the Bankruptcy or related event.

If there are prior student loans that have not been discharged, additional documentation (one of the following):

  • A letter from the student’s financial institution, the National Student Loans Service Centre, and/or the student’s collection agency confirming that there is no outstanding balance on any student loans issued to the student; OR
  • If student meets in-study bankruptcy requirements, a letter from the student’s Financial Aid Office confirming that the program of study in which the student was enrolled at the time the student filed for Bankruptcy is the same as the program of study the student is applying for assistance to attend

Note: If none of two situations applies, the student is not eligible for further student loans.

b) Documentation Required for Consumer Proposal reviews

If the Consumer Proposal is incomplete:

  • Student must provide a copy of the Notice to creditors of Consumer Proposal AND
  • Student must provide a letter from their Trustee indicating the date they filed for bankruptcy or initiated a related event and that the following two conditions have been or will be met:
  • Neither Ontario nor Canada is a creditor in the Bankruptcy or related event as a result of financial assistance given to them through OSAP;
  • No financial assistance given to them through OSAP in the 2015-2016 year (August 1, 2015 to July 31, 2016) will be seized to repay any creditor(s) listed in the Bankruptcy or related event; AND

If Consumer Proposal is complete:

  • a copy of the “Certificate of Full Performance, or
  • Bankruptcy and Insolvency Records Search Extract from Superintendent of Bankruptcy.

If Consumer Proposal is annulled:

  • a letter from the Trustee attesting to the annulment; or
  • Bankruptcy and Insolvency Records Search Extract from Superintendent of Bankruptcy.

If there are prior student loans, additional documentation (one of the following):

  • A letter from the student’s financial institution, the National Student Loans Service Centre, and/or the student’s collection agency confirming that there is no outstanding balance on any student loans issued to the student; OR
  • If student meets in-study requirements, a letter from the student’s confirming that the program of study in which the student was enrolled at the time the student filed a consumer proposal is the same as the program of study the student is applying for assistance to attend See Section 3 below for details on confirming continued program of study).
  • If neither of the two situations above apply, the student is not eligible for further student loans.

c) Documentation required for Consolidation Orders (Orderly Payment of Debts Program reviews):

If the Consolidation Order is incomplete:

  • Student must provide a copy of the Consolidation Order under the BIA orderly payment of debts provision which includes the Consent of Creditor letter; AND
  • Student must provide a letter from their Trustee indicating the date they filed the Consolidation Order and that the following two conditions have been or will be met:
    • Neither Ontario nor Canada is a creditor in the Consolidation Order or as a result of financial assistance given to them through OSAP; and
    • No financial assistance given to them through OSAP in the current academic year will be seized to repay any creditor(s) listed in the Consolidation Order.

If Consolidation Order is complete:

  • a copy of the “Certificate of Full Performance” which proves that their obligations have been met and debt is paid in full; or
  • Bankruptcy and Insolvency Records Search Extract from Superintendent of Bankruptcy.

If there are prior student loans, additional documentation (one of the following):

  • A letter from the student’s financial institution, the National Student Loans Service Centre, and/or the student’s collection agency confirming that there is no outstanding balance on any student loans issued to the student; OR
  • If student meets in-study requirements, a letter from the student’s FINANCIAL AID OFFICE confirming that the program of study in which the student was enrolled at the time consolidation order is filed is the same as the program of study the student is applying for assistance to attend (See Section 3 below for confirming continued program of study).
  • If neither of the two situations above apply, the student is not eligible for further student loans.

Notes:

  • Part X of the Bankruptcy and Insolvency Act, Orderly Payment of Debts (OPD), provides for a mechanism to facilitate the repayment of debts by a debtor. A court can provide a consolidation order allowing the debtor to make orderly payments to be distributed pro rata among creditors. Not all provinces and territories have implemented the OPD program, and it is not a debt management option for Ontario residents.
  • The effective date for a court-ordered Consolidation Order is the date of the Consent of Creditor letter plus one month. (e.g., if the Creditor letter is dated March 1, 2013, then the effective date for ministry purposes is April 1, 2013).
  • Consolidation orders issued for example, by credit counselling agencies, cannot be considered under this review unless the court has instructed a credit counselling agency to administer the file on their behalf.

d) Orderly Payment of Debt pursuant to Provincial/Territorial Legislation

Some provinces or territories may have separate provisions for orderly payments of debt under provincial or territorial legislation that are not under the Orderly Payment of Debt provisions under Part X of the BIA. Contact the Financial Aid Office.