While the FAAs monitor, review and process academic progress issues, only the Ministry or the federal government/NSLSC can review or provide clearance for all other “student restriction” issues. These other “student restrictions” result from issues such as:
The borrower may have any of the following:
The following information outlines the procedural issues and documentation requirements for reviews of this nature.
Student restrictions apply to future eligibility for further OSAP assistance, (i.e., loans, grants, bursaries and scholarships, and interest free status). Despite a student restriction, students who have not defaulted on their student loan(s) may remain eligible for repayment assistance programs such as:
Students who have federal restrictions (e.g., they have defaulted on their federal student assistance debts or have received Debt Reduction in Repayment, RAP Stage 2 or RAP-PD on federal loans) will have a restriction on their file. To obtain clearance from the restriction, they must contact the Government of Canada (Human Resources and Social Development Canada (HRSDC) – Canada Student Loans Program (CSLP). The student should be directed to contact HRSDC-CSLP, via the National Student Loans Service Centre, at the following address:
National Student Loans Service Centre
PO Box 4030
Mississauga, Ontario L5A 4M4
Note: the steps that the student must take before they can receive clearance from the federal government will vary depending on the restriction. For example, a student with Canada Student Loans in default would be required to make the minimum payments necessary to bring the loan back into good standing (e.g., repay all outstanding interest and make the equivalent of two monthly payments).
If the student receives federal clearance and is approved for additional federal funding, then HRSDC-CSLP will provide the student with a written clearance decision, known as a Clearance Letter.
Students who have a provincial restriction on their file because they have defaulted on their provincial student assistance debt or because they have received provincial debt reduction are not eligible for further provincial assistance until the provincial debt has been repaid in full. The process for students to determine the current status of their debt and make payments on their debt varies depending on whether or not the student has defaulted on their provincial student assistance debt.
a) Provincial default
Students who have a provincial restriction on their file because they have defaulted on provincial student assistance debts may contact the Collection Management Unit to determine the current status of their provincial debt and which private collection agency currently has the debt:
Collection Management Unit
40 Elm Street Suite 41A
Sudbury, ON P3C 1S8
Toll free within area codes 905, 705, 613, 519, 807 & 416:
If the student has received debt reduction on provincial student assistance debts and the debt is currently in good standing, that is, the student has not defaulted, the student must be advised to contact the following to confirm the status of their debt and to make payments:
Contact the National Student Loan Service Centre for Ontario Student Loans issued after July 31, 2001.
Once the provincial debt has been paid in full, students can request a review of their situation to determine whether they are eligible for further funding.
• A letter from the student requesting a review of their eligibility for further provincial funding, including information on the current status of their provincial debt; and
• Proof that the provincial debt has been repaid in full (e.g. most recent statement of account from the agency holding the debt).
If the student has a provincial restriction only, then federal clearance is not required.
If the student has a federal and a provincial restriction issue, then upon receipt of proof of federal clearance from the student, the Ministry will release the current OSAP application for processing for federal funding only.
Additional provincial funding will be provided once two conditions have been met: