OSAP Appeals

Loan Overawards and Eligibility

When a student has negotiated loans in excess of his/her OSAP entitlement in two or more academic years, he or she is ineligible for further funding until the repayable overpayment(s) is paid in full, or repayment of the overaward is waived for one or more years due to financial hardship. 

• Repayment in Full
• Hardship Review (Overawards From Prior Years)
• Repayment of Loan Overawards Within the Academic Year
• Removing Loan Overawards When Loans Paid in Full (Federal/Provincial)

 

Repayment in Full

The student is required to repay all outstanding loan overawards in full (with the exception of the loan overpayment relating to the first overaward) to the financial institution and/or the NSLSC currently holding the student loan(s).  Payment can be made from the student’s personal resources or the FAA can exercise discretion in the use of their own bursary or tuition set - aside funds.

It is important to recognize that OSAP entitlements are updated for a number of reasons once the academic year has ended. The amount of loan overpayment may increase or decrease as information changes. The amount of loan overpayment owing by the student will reflect current information on file. Therefore, if a prior payment(s) is less than the current balance owing, the student is ineligible until the loan overpayment has been addressed in full.

Documentation required:

The student must provide a copy of the receipt from the financial institution and/or NSLSC showing the date and amount of payment.

 

Hardship Review (Overawards From Prior Years)

The FAA may waive the collection of a prior year’s loan overpayment(s) in the current year so that the student can apply for funding if the loan overpayment was due to exceptional circumstances and if repayment of the overpayment would involve financial “hardship”.  

Typically, repayment of a loan overpayment can be waived for only one year due to hardship.

However, the ministry recognizes that financial hardship may continue beyond one year. Therefore, the FAA may waive collection of a prior year’s overpayment for more than one year if the student has provided documentation to show that the repayment of the loan overpayment continues to create financial hardship for the student, and the student has remained enrolled in the same program. Typically, a hardship review would be approved for more than one year if hardship continues to exist and to allow a student to complete a program. If a student is requesting a hardship review to switch programs or begin a subsequent program, the FAA must consult the ministry.

Note: Students who have one or more loan overawards generated through the student income verification process (both payable and non-payable) cannot be considered for a hardship review.

Documentation required:

• The student is required to provide the FAA with a letter of explanation and any relevant supporting documentation (as deemed necessary by the FAA).

 

Repayment of Loan Overawards Within the Academic Year

Loan overawards within the current academic year can be reviewed by the FAA.

Documentation required:

• a copy of the receipt from the financial institution or National Student Loan Service Centre showing the date and amount of payment. 

 

Removing Loan Overawards When Loans Paid in Full (Federal/Provincial)

When a student has repaid all previous loans in full, loan overawards may be removed from the student’s file.  Note: If the student only had one overpayment, this review cannot be considered.

Documentation Required

• Proof that the loans have been paid in full, either from the National Student Loan Service Centre or from the financial institution, if the student had bank-held loans.
• Proof that the loan ( provincial/federal or both) have been paid in full while in collection either from the Ontario PCA or CMU for provincial loans and/or CRA/HRSDC for CSLP.  A Conditional letter (i.e., payment subject to audit) is not acceptable.