OSAP Restrictions or Ineligibility
Even though you may have met student loan eligibility criteria, you may find that you are ineligible for OSAP assistance. Depending on the reason, you may be able to get your eligibility reinstated. Whether you are a current student, or a graduate, book an appointment with a Financial Aid Advisor to discuss any options available to you.
Reasons for OSAP Ineligibility
Below you will find information about different situations that cause students to lose their eligibility for assistance from OSAP.
1. Student Loan Default
You have defaulted on the repayment of a Canada-Ontario Integrated Student Loan, Ontario Student Loan, Canada Student Loan, or a student loan issued to you by any other jurisdiction in Canada.
2. Incorrect Information or Criminal Offence
Your eligibility has been restricted for such things as: providing incorrect information when you submitted your OSAP application; or being convicted of a criminal offence involving fraud or theft under the Criminal Code (Canada) with respect to any student financial assistance program in Canada.
3. Other Government Assistance
You are receiving other government assistance that covers expenses related to your postsecondary studies. If you are receiving other government assistance that covers a portion of your expenses (e.g., Ontario Disability Support Program), you must check with the government agency about receiving benefits and OSAP at the same time. For further information, contact the local office of the agency from which you are receiving benefits.
4. Bankruptcy and Other Debt Problems
You have been restricted because of one of the following:
- Bankruptcy;
- Consumer Proposal; or
- Consolidation Orders under the Orderly Payment of Debts.
For detailed discussion on this topic, please visit the OSAP website.
5. Overpayment
You have not repaid a loan, a grant or bursary overpayments. Simply put, an overpayment happens when you have received more money that you were entitled to. Some changes that you report will cause your file to be reassessed (recalculated). This means the Ministry will use the new information to determine the amount of funding you will receive (or should have received). If your application is reassessed and it is determined that you have received more funding than you are eligible for, you are considered to have an overpayment. The amount of the overpayment may be deducted from future funding.
The following are common examples of situations that trigger a reassessment:
- course drops,
- full withdrawal,
- a withdrawal to part-time studies,
- changes in the student's income or assets, etc.
| Number of Overpayments on File |
Consequences |
| One | Doesn't have to be paid back. |
| Two or More | The second, third, etc. must be paid back before receiving additional funding from OSAP. |
You will be sent a notice outlining the reason(s) for the overpayment and the steps that you must take to repay the overpayment. In some cases, you may not be eligible for further financial assistance, including the Ontario Student Opportunity Grant (OSOG).
6. Academic Progress Issues
You have not met your academic progress requirements. Our office has a responsibility to monitor the academic progress of students. Accordingly we will run reports to identify students who have not met the minimum OSAP academic progress requirements. The minimum requirements were explained above. Click here to read about these requirements.
When a student has one instance of academic probation, the student will remain eligible for OSAP funding in the next academic period, however the student must submit a letter of explanation with their OSAP application. Although your OSAP application will be processed, and an assessment generated, the funds will not be issued until the student has submitted that letter of explanation. This is a warning for student to be cautious on a going forward basis, especially if they are reliant upon OSAP assistance. This status will remain on a student's file until a student requests a review. The student must demonstrate he/she has been academically successful (OSAP definition) for an appropriate amount of time. See OSAP Appeals or Reviews.
When a student has two instances of academic probation, the student loses his/her eligibility for OSAP funding in the next academic period. A student's status is upgraded to Full Academic Restriction. The penalty for two instances of academic probation is a one year restriction. A year means a normal school year for the student's program of study, as determined by the university. For example, if the second instance is placed on a student file in May, 2008, the student would have to wait until September 2009 to be eligible for OSAP assistance. A student cannot apply for OSAP with a Full Academic Restriction. A Full Academic Restriction can only be downgraded through a written request from the student for a review. See OSAP Appeals or Reviews.
7. Income Verification Restrictions (IVS)
There was a significant variance in the income you reported to the Canada Revenue Agency (CRA) and the income you reported on your OSAP application and/or any other income reported by you to the ministry and/or you financial aid office.
Remember, you have an obligation to update your income and, if applicable, that of any other person that was required to provide it on your application. If your income, or that of your parent(s) or spouse, is verified with CRA as being higher than you reported on your application, the Ministry will recalculate your entitlement. You will receive a letter advising you of this fact and, in addition, you will receive a Notice of Re-Assessment. This document will tell you what you would have received had you reported the correct income on your application.
Sometimes, this recalculation can result in an overpayment (see above).
If the variance between the income reported on your application and the income reported to CRA is large enough, the Ministry may penalize you by placing a full restriction on your file. Depending on the amount of the variance this penalty can range from 1 to 5 years. This is a serious situation for which you should seek advice from a Financial Aid Advisor.
You have an opportunity to respond to the results of this audit. We recommend that you speak to a Financial Aid Advisor before responding. Make sure you bring in your letter. Based on the facts of your situation we will advise you whether or not a response is appropriate. Book an appointment now.
8. Other Reasons
- You have failed a credit check.
- You are in receipt of Debt Reduction in Repayment.
Return to Government Aid, Student Loans & Grants