Archived Urgent Help Needed Posts - Another Loan Overpayment?

Another Loan Overpayment?

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Topic: Another Loan Overpayment?

Posted By: PetitorVeritas
Subject: Another Loan Overpayment?
Date Posted: 23/December/2012 at 1:41pm

Hello all, I am desperately looking for information and help with a loan overpayment issue. I just today received a letter from the Ministry of Training, Colleges and Universities stating that I have received more loan money than I was entitled to and that if I do not pay the amount of $1755 in full, I am ineligible for further student aid. Apparently, this loan overpayment is in regards to three loans that I have received from OSAP in the past; one from 2004-2005, another for 2011-2012 and the one I just qualified for in September of this year covering 2012-2013. Here is my loan history:

-I went to college in 2004-2005 and received approximately $5000 from OSAP, was reassessed, and the loan amount reduced to $4300, something related to my parents' income.

-I defaulted on the 2004-2005 loan and it went to collections for 7 years (not proud of that one, but my financial situation did not allow for payments).

-I went back to college in 2010, payed off my outstanding debt for the 2004-2005 loan in full and was reapproved to receive a loan for my following year in 2011.

-I received approximately $13000 from OSAP for my 2011-2012 and was hit with a loan overpayment of $522 that I had to pay before I was eligible to receive any more funding for this year.

-I paid the loan overpayment in full and was approved for a loan for the 2012-2013 school year.

-I have now just received the aforementioned letter saying that I must pay this $1755 in full before I am eligible for more funding.

So, here are my questions:

1) How is it that the 2004-2005 loan amount could be reassessed after 8 years, especially after I have already paid it in full?

2) How is it that this loan overpayment notice includes a loan overpayment amount from 2011-2012 after I have already paid a loan overpayemtn for that year in full?

3) I have received $10000 out of the $18000 I was approved for in September of this year. The other $8000 is for my winter tuition. Will this loan overpayment prevent me from getting the remainder of my loan?

I have three dependents (my wife, 7 year old son and our new 6 day old baby) and can't afford to pay off this loan overpayment before school starts in January. If I can't receive that loan I have to back to work, my loans go into collections, etc. I cannot afford this setback. Any information or tips would be greatly appreciated.

Thank you.

Replies:

Posted By: administrator
Date Posted: 23/December/2012 at 1:50pm

I suggest you call OSAP the first thing monday before their offices close for the holidays. Escalate the issue to a supervisor.

I've heard of them going back and auditing files and then sending out notices up to 10 years after people have been out school - these were for grant overpayments and weren't even collectible due to statute of limitations.

They do data matching of income tax records to loan applications so if you make more than you estimated on your application they may claw back over payments.

Call them first thing Monday morning before the holidays start to see first if the letter was sent out by error. This does happen from time to time.

Let us know how it goes.

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Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024

Posted By: PetitorVeritas
Date Posted: 23/December/2012 at 1:58pm

How do I go about doing this? Whenever I call OSAP directly (at least in my past experience). I get a machine telling me to either contact the National Student Loans Service Center or to go to my financial aid office at school. Financial aid is closed until January 2. Is there a number where I can call OSAP and actually speak to a person?

Posted By: administrator
Date Posted: 23/December/2012 at 4:15pm

It looks like the NSLSC looks after OSAP so call them first thing, but escalate this as the lower level workers wont be able to deal with this effectively.

Does the notice say what year the overpayment refers to?

Let us know how it goes. I hope you get this resolved quickly.

BTW, get some paper and take notes of what they say, and who you speak to. That is always helpful later in these situations.

-------------
Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024