Every OSAP loan is paid for partially by the federal government and partially by the provincial government, usually split 60% federal and 40% provincial.
At its most basic, the OSAP formula calculates how much a student needs and then subtracts how much the student can afford to pay and the difference is given to the student in the form of a loan (and sometimes grant), up to a maximum of $11,900 for a normal, two-term year.
To be eligible for OSAP you must:
- be a Canadian citizen
- have lived in Ontario for 12 consecutive months without being a full-time post-secondary student
- be taking a 60% course load (40% with permanent disability)
- pass a credit check
- not be in default on any government loans
- demonstrate satisfactory academic progress
In assessing how much it will cost a student to attend school, OSAP takes the following into account:
- tuition, books and supply costs
- living allowance
- cost of transportation home (if applicable)
- cost of child care (if applicable)
In assessing how much a student can afford to contribute to their education, OSAP takes the following into account:
- parental contribution
- personal assets
- summer income
- in-study income
When calculating a student’s need, OSAP allocates a certain monthly living allowance to cover shelter, food, public transit, and miscellaneous expenses. The amount of the living allowance depends on the student’s situation – students living away from home have a higher living allowance, as do married students and students with dependents.
Monthly Living Allowances for the Canada-Ontario Integrated Student Loan/Grant
Source: 2009-2010 Student Eligibility and Financial Need Assessment Manual, p. 146
|Living Situations||Living Allowance ($)|
|Single Student Living At Home|
|Total Monthly Living Allowance||433|
|Single Student Living Away From Home|
|Total Monthly Living Allowance||1,045|
From the chart above, a single student living away from home receives $226/month for food or $7.50 per day.
For a detailed breakdown of the OSAP living allowance, click HERE.
- In 2008/09 the number of OSAP recipients reached 226,000 students between universities and colleges.
- In 2008/09, the mean average loan amount per student in Ontario was $7,792.
- The 2008/09 OSAP the default rate was 8.4%, the lowest in Canada.
- 28,300 students received Canada Access grants, and 53,800 students received Ontario Access Grants.
- In cash terms, just over 80,000 students received an Ontario Student Opportunity Grant in 2008/09.
- In 2007-08, the average repayable OSAP debt of a 4-year university student was $21,883. Total student debt is higher, as it takes into account debt from private sources.
- Of university students completing the final year of their program in 2007-08, about 40 per cent have repayable OSAP debt totaling $25,000 or more.