How to get osap out of collections after a consumer proposal

Personal Finance Canada Forum
1

hi everyone, i filed a consumer proposal just under two years ago and have recently paid it off. my osap loan wasn’t included because i hadn’t been out of school for seven years, but i stopped making payments when they stopped automatically withdrawing money from my account. i wasn’t aware i could still make payments by adding osap as a payee. it’s been 17 months now, and the loan has gone to collections.

getting mixed info on how to deal with this. some people say i should call cra to set up a payment plan, and others suggest writing a letter to the ministry. i don’t plan on returning to school or needing osap again; i just want to get my account back in good standing and continue with payments.

any advice would be great, thanks!

2

try calling cra collections and ask about student loan rehabilitation.

typically, the process goes like this:

  • set up a payment plan with cra (they handle collections for esdc, where student loans are managed)
  • make two successful payments on this plan
  • then contact national student loans, tell them you’d like to rehabilitate your loan and that you’ve made two payments with cra
  • keep making payments until they advise otherwise
  • once the loan’s out of collections, you can go back to paying it as usual instead of through esdc
3

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4

the steps to handle federal and ontario student loans are different.

check out these resources: