Today’s students have lots of choices and many decisions to make as they prepare to attend university. Residence or off-campus housing, Commerce or Economics and OSAP or a Student Line of Credit is to name a few. Both programs are designed to help students pay for their post-secondary education. With the cost of a post-secondary education on the rise, it is not unusual that students require more funding in addition to OSAP. Student Lines of Credit are another avenue available to students who are in receipt of OSAP or who have not met the eligibility requirements for government funding. You can have both at once so it doesn’t hurt to consider all of your options.

OSAP

SLOC

What is it?
OSAP is a government funded financial aid program SLOC is a loan that can be applied for through all major Canadian banks
Eligibility
Canadian citizen, permanent resident or a protected person Canadian citizen or permanent resident
Must be enrolled in undergraduate, diploma or certificate program Must be enrolled in undergraduate, graduate, diploma or certificate program
Assesses
Education Expenses, parent’s income, student’s income Student’s income, co-signer’s income, credit report
Parental Support
Family financial status assessed if you graduated high school less than four years ago Undergraduates will require a co-signer
Parents are not financially responsible for the loan The co-signer will be required to pay the loan if the student is unable to do so
Students are deemed independent after four years of completing high school Graduate students can apply on their own
Interest Rates
Interest free loan while you are a full time student
Provincial portion: Prime + 1%
Variable Federal portion: Prime + 2.5%
or
Fixed Federal portion: Prime + 5%
Interest will accrue once funds are used During studies: Prime + 1%
After studies: Prime + 2%
Rates may change depending on the bank
Repayment
Federal portion will begin to accrue upon graduation Required to pay off the interest every month while in school
Provincial portion will accrue after 6 months and payments will then be required Interest will increase 1 year after graduation and payments will be required
Reapplying
Eligibility is based on a yearly application SLOC lasts for the duration of the program
Payment Support
The Repayment Assistance Program will help borrowers with low income.
Payments can then be lowered or put on hold for six months depending on income and family size
No programs for payment support

For more information about OSAP and the Repayment Assistance Program, visit the CanLearn website here http://www.canlearn.ca/eng/index.shtml