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7 year old default osap loan

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Topic: 7 year old default osap loan

Posted By: danshadow
Subject: 7 year old default osap loan
Date Posted: 22/September/2013 at 4:39am

Hello,

I was accepted for an OSAP loan several years ago, and attended college in 2006/2007 in Ontario.
After completing my second year, financial/personal circumstances forced me not to return to college, and I was a few courses short of a degree. As of 2007/2008 my OSAP debt was at $17000.

A year or so later I found out that I could apply for 6 months of interest free status, requiring a lump sum payment and a one-time-only amortization of the interest on to my total loan amount. I went through with this, and a few weeks later I was told I would need to make another lump sum and re-apply because my 6 months was retroactively applied to the past 6 months. I was not financially able to do this.

It has now been 6-7 years, I have not made any payments nor had contact with OSAP. I have been employed at minimum wage jobs, and not able to get a job for what I went to college for (Computer Programming).

I have not done my taxes in the past 6 years because I was told that CRA will take it and forward it the agency holding my default OSAP loan, and I cannot afford to get my taxes done without a return.
I literally live paycheque to paycheque.

I am looking for a way to consolidate my Ontario OSAP loan in default status, even though I have no money in the bank, and a minimal amount of credit card debt (as well as being behind in a couple bills).

I sincerely want to go back to school and find a career so that I can repay my loan, but I cannot save up enough money due to my minimum wage employment, and was told OSAP would not consider me for another loan until the current one is cleared from default status.

I've read through several posts on this website, and noticed things such as "Consumer Proposals" but I don't quite understand it.

I am really in need of some guidance.. does anybody have any suggestions on how to clear my debt, or get the opportunity to go for a second career with bad credit and OSAP/credit card debt?

Any help would be sincerely appreciated!!

Replies:

Posted By: SolveStudentDebt
Date Posted: 29/September/2013 at 7:55am

Whether or not the Ontario government will give you any relief benefits depends on a number of things. Early withdrawal issues are common because of the broken educational and student loan systems in Canada. A strong case will get you a benefit. If you are going to ask any government to cut you some slack on a debt you them you have to give them a reason to do it. I am an expert at doing that for people, but I can't say without interviewing you and detemrining case strength anddoing the analaysis that is required to formulate one.

Economic circumstances affect mostly everyone in Canada but that isn't a good enough reason. There has to be a a lot more in such demonstrations. The ones that we do for clients are HUGE and quite time consuming, depending on the severity of a case.

To answer your question about "consumer proposals" those are bankruptcy programs. The trustee makes an offer to the government and the govenrment has the right to refuse. If approved, you pay a percentage of the debt (probably somewhere between 50-65%) and the trustee takes a piece of that for themselves, plus the up front fee of $2000.00 or thereabouts. If you have a clear and present hardship with extenuating circumstances, and it is strong enough, you can present it to the government and they may remove the debt from recovery based on that.

Bankruptcy is getting REALLY old and branding those who really did not require it a problematic identity crisis.

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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

Posted By: danshadow
Date Posted: 20/October/2013 at 6:08am

Thank you for responding to my post Johnny. Here is some more information Surrounding what had happened. During my first year of college I spoke with my doctor, and was prescribed antidepressants for my clinical depression. In the summer prior to my second year attending college, a criminal offense I had committed when I was 12 years old came to light. My family disowned me and kicked me out on to the street. I had already secured my second year of OSAP funding so I was able to start my second year of college. Having lost everyone I ever cared about, I fell into a deep depression and into substance abuse. Somehow I was able to keep my grades up. I was staying on the campus residence, and was subject to an eviction due to the smell of marijuana. I was allowed to stay in residence until the end of the year because of a letter I wrote explaining my circumstances. After college, I found a place to live with other family members until about a year later when charges were laid for my offence comitted at age 12. I was asked to move out, And shortly after found an apartment. I was sentenced to 2 years probation and to work with a psychologist for 1 year. My probation ended 1 year ago, and because the offence was comitted when i was a minor i have no criminal record. Since college I have worked several minimum wage jobs to support myself, and this year got my first girlfriend in nearly 7 years, who has moved in with me. I have a sense of self-worth again, and wish to do more for myself and my girlfriend. Supporting her and I on minimum wage doesn't give me enough money to repay my loan or save for college. I live paycheque to paycheque. do you think my circumstances over the past several years would provide a strong enough case to have the government provide some debt relief?

Posted By: SolveStudentDebt
Date Posted: 21/October/2013 at 3:45am

I see a case but it's merits reay depend on a ot if "in between" information. The result will depend on exactly how strong the case is, and although you certainly endure and have endured hardship, you will need to present a lot more than this. You are on the right path and I am happy for you! You can't change the past but you can form your own future, and you are thinking the right way.