No interest after Graduation
Students have six months before interest begins to accrue on their loans – encourage students, who can, to begin paying back loans before the six month period ends.
Ontario Student Opportunity Grant (OSOG)
This grant can limit yearly debt to a maximum of $7000 for two-term year, or $10,500 for three-term year
Eligible students can suspend monthly loan payments if they cannot afford to make them.
Revision of Repayment Terms
Students can change his or her monthly payment by adjusting his or her loan repayment period.
Debt Reduction in Repayment
This program may help students reduce their debt if they are still having difficulty repaying five years after leaving their program of study.
Repayment Assistance Plan
This plan helps students through reasonable and affordable payments
Visit http://osap.gov.on.ca for more information about any of the above programs
Tools For Career Colleges
Use admissions testing which not only meets ministry requirements but also those of the program – this will ensure student’s can handle the curriculum.
Remind students during entrance interviews if they are applying for a loan it is their financial responsibility; arm your students with the information to make an informed decision before applying to OSAP.
Keep an eye on students who are falling behind, a withdrawn student still has to pay back loans and may lose out on grants.
Program quality, industry relevance and placements
Offer high quality programs that provide good value for money invested in order to ensure that students feel good about their education and are more inclined to repay their loans.
Use program advisory committees for curriculum development and maintenance to ensure that the material being taught meets industry standards, and will lead to employment after graduation.”
Assist students with finding unpaid practicum placements to practice what they have learned, to gain real-world experience and begin networking before graduation, in an effort to increase their likelihood of becoming gainfully employed.
Conduct exit interviews with students to remind them of their obligation to repay their loans, and the importance of keeping the National Student Loan Service Centre (NSLSC) informed of any address and contact information changes
Encourage graduates to read all correspondence received from NSLSC in a timely manner and offer to provide clarification about such correspondence, as needed.
Once the program of study has been completed, remind students of the responsibilities associated with OSAP, and the potential consequences of nonpayment such as garnishment of income tax refunds, and poor credit ratings that could negatively affect their ability to get car loans or mortgages in the future.
Student follow-up is an important step in reducing defaults.
Contact students after graduation to remind them of their obligation to repay their loans, through the use of a series of letters, emails and calls.
Contact OACC if you have any questions about helping your students keep their loans in good standing.
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