New changes are coming to the Ontario Student Assistance Program (OSAP), meaning some students dependent on financial aid will be able to receive larger loans for the 2015-16 school year, but will have to pay off more after graduation.
These changes were included in the 2015 provincial budget, unveiled April 23:
Students no longer have to declare their vehicles as an asset when applying for financial assistance. Owning a car will have no effect on eligibility or the amount of money a student receives.
The Ontario student loan limit, or the maximum amount of financial assistance a student can get, is being tied to the rate of inflation. This fall, it will rise to $155 for single students per week and $355 for those who are married or have dependent children.
This change will allow students who begin a four-year university degree program in September to receive around $1,000 more in financial aid over those four years, according to the provincial government.
The debt cap, which is the maximum amount of money students pay back, is also tied to inflation, meaning students who borrow at the maximum of $7,300 this year will have to pay $100 more for next year.
Past borrowers who have defaulted on their loans are now able to bring their debts back into good standing with the launch of the Ontario Student Loan Rehabilitation Program, which helps students repay these debts through a series of partial payments.
Sam Aiello, a third-year child studies student, had to declare her vehicle as an asset for the last two years in her OSAP application. She said she welcomes the changes to OSAP, which will help her receive more funding, which she is partially dependent on.
“Just because I own a car, doesn’t mean I don’t need the funding for my education just as much as someone who doesn’t own a car,” she said. “In that sense, I believe it’s fairer, and definitely a positive change for OSAP.”
