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Rank: Frosh
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Are previous left over osap loans (from last year) considered as assets (when applying for osap second year)?
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Rank: Senior Student
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angey wrote:Are previous left over osap loans (from last year) considered as assets (when applying for osap second year)? Loans are never considered an asset because they have to be paid back, so no. When they ask about assets on your OSAP application they mean things like: Vehicles, house, etc...ie big items that you could use as collateral for a bank loan. Small assets-like your furniture, electronics, etc don't count either.
4th Year Mac Science Student. Mac NDP VP McMaster Non Partisan Society President (and Founder) Support my campaign- http://www.facebook.com/group.php?gid=154743746530&ref=nfLets get a student elected-anything is possible!
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Rank: Frosh
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if loans were considered as 'assets' then I will be a millionaire now 
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Rank: Senior Student
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angey wrote:Are previous left over osap loans (from last year) considered as assets (when applying for osap second year)? If by 'previous left over osap loans' you mean that you have money left over in your bank account (let's say for example from the January installment, when you were able to pay everything in September, or you just did not need to use all the money OSAP gave you), I would say that it will be counted as 'asset' - you would have to declare it as money you have.
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pirate wrote:if loans were considered as 'assets' then I will be a millionaire now hahaahahha and your username's pirate. LOL
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Resurgam wrote:angey wrote:Are previous left over osap loans (from last year) considered as assets (when applying for osap second year)? If by 'previous left over osap loans' you mean that you have money left over in your bank account (let's say for example from the January installment, when you were able to pay everything in September, or you just did not need to use all the money OSAP gave you), I would say that it will be counted as 'asset' - you would have to declare it as money you have. That's incorrect. It's not actually your money if it's a loan, so it's not considered an asset.
4th Year Mac Science Student. Mac NDP VP McMaster Non Partisan Society President (and Founder) Support my campaign- http://www.facebook.com/group.php?gid=154743746530&ref=nfLets get a student elected-anything is possible!
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Rank: Senior Student
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Macgirl wrote:Resurgam wrote:angey wrote:Are previous left over osap loans (from last year) considered as assets (when applying for osap second year)? If by 'previous left over osap loans' you mean that you have money left over in your bank account (let's say for example from the January installment, when you were able to pay everything in September, or you just did not need to use all the money OSAP gave you), I would say that it will be counted as 'asset' - you would have to declare it as money you have. That's incorrect. It's not actually your money if it's a loan, so it's not considered an asset. If you have money in your bank account, it is (liquid) asset you have. You could write down the load in the 'debt' category...if there were such a category. If I were to go by your definition, all my money is "borrowed", so I do not need to declare it? Well you can try and plead ignorance if they call you on it. At least that is my opinion and I prefer to play it safe.
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I'm no accountant (woo intro business), but one of the basic principles there is that you've got one column for what you have, your assets, and one column for what you owe, your debts or liabilities. Taking out a loan increases both your assets and your liabilities, such that the impact on your net worth is 0 (before interest ;) In addition, once you've gotten the OSAP money, it's not in any way distinct from your other money. If you started off with $10,000 from OSAP and $10,000 from a job and savings, and at the end of the year you have $5,000 left, is that money from OSAP? Is it from your savings? It doesn't matter. You have $5,000 and you owe $10,000. The fact that you already owe OSAP money doesn't mean they're going to pretend you have no money in the bank in determining your need simply because you owe them more than you have in the bank. I will note that before thinking about it I was tempted to go with MacGirl's response. And a line of credit is not an asset, until you take the money out of it.
FAQ's: 1. Will I get in? See: electronicinfo.ca for Ontario schools. If you have a couple percent above the marks there and it's not looking at supplementary, the answer is almost certainly yes. 2. Anything else: Google it before asking.
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Rank: Frosh
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I have the same problem. but I delare the last year osap loan as the other asset. It really affect my this osap and bussary. Could I appeal it to the finance aid office?
Thanks
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On one hand it makes sense that it would affect your OSAP, because if they lent you the money and you didn't spend it, it indicates that you don't need it, so why would they give you more?
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Rank: Senior Student
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I was told by my financial advisor at Mac that leftover OSAP LOANS are not considered an asset and do not have to be claimed. Furthermore, I was told that you do not have to claim any loan money, as it is not considered an asset because it's not yours-you have to pay it back, with interest, making it a liability. There are different rules for grants and monetary gifts though. I have never claimed leftover OSAP or leftover loans and it has never been an issue-I was instructed not to. I might have been steered in the wrong direction, but it's worked for me. And as a sidenote for everyone stressing out about it-OSAP doesn't generally check your bank accounts unless they've had problems with your application (ex your income verification doesn't match). And as for the issues of loans, credit card debt, and lines of credit counting against as an asset-OSAP uses a credit check system to check, and on a credit check all loans, lines of credit, credit card debts, etc actually count against you as a liability (which is why if you have high debts you can have a problem getting additional loans, etc). I agree that if you have leftover OSAP it should affect your funding, but the way the system is designed if you don't let them know it usually falls through the cracks.
4th Year Mac Science Student. Mac NDP VP McMaster Non Partisan Society President (and Founder) Support my campaign- http://www.facebook.com/group.php?gid=154743746530&ref=nfLets get a student elected-anything is possible!
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LOL, this is messed. If loans are debts, not assets. Macgirl should work at Enron 
University of Lost Hope, Broken Dreams and Tattered Souls '08 Self-help: I am taking Engineering, but Engineering isn't taking me.
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Rank: Senior Student
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Taiyab wrote:LOL, this is messed. If loans are debts, not assets. Macgirl should work at Enron Haha I've never pretended to be an expert in finances. However: Definition of a debt/liability: 1. something owed: an amount of money, a service, or an item of property that is owed to somebody. A basic loan is the simplest form of debt. Definition of an asset: Any item of economic value owned by an individual or corporation, especially that which could be converted to cash Since a loan is not owned by the individual, and it has to be paid back with interest, I don't see how it can be classifed as an asset? I took a first year accounting course, and debts were always categorized as liabilities (however that was three years ago so perhaps my recollection is incorrect). That, in addition to my OSAP advisor instructing me NOT to claim any loans as assets on my application-she specified that assets (at least in terms of the OSAP application) consisted only of large items that could be sold (like a car, house, property, boat, etc-and that OSAP doesn't care about smaller assets like your bar fridge or tv), and large sums of cash that did not have to be paid back (the examples she gave me included monetary gifts and inheritances). I also know that in a credit check any outstanding loans or credit card debts are classifed AGAINST you as liabilities, as I receive a credit report summary every 3 months. If loans counted as assets, I would be rich! If someone can clarify for me how a loan can be considered an asset that would be great!!! Edit: http://en.wikipedia.org/wiki/LiabilitiesI should also clarify that when I say debts were always considered liabilities, they were always liabilities to the person that received the loan/owed money to someone, not by the person/place issuing the loan.
4th Year Mac Science Student. Mac NDP VP McMaster Non Partisan Society President (and Founder) Support my campaign- http://www.facebook.com/group.php?gid=154743746530&ref=nfLets get a student elected-anything is possible!
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Macgirl wrote:[quote=Taiyab] Edit: http://en.wikipedia.org/wiki/LiabilitiesI should also clarify that when I say debts were always considered liabilities, they were always liabilities to the person that received the loan/owed money to someone, not by the person/place issuing the loan. The fact that you owe $10,000 is indeed a liability. But the fact that you have $10,000 in your bank account is an asset. The two are not mutually exclusive. When you get a loan, of lets say $10,000, if you were keeping a balance sheet, you'd add $10,000 to the liabilities column AND add $10,000 to the assets column, because you now have $10,000 in your bank account that you didn't have before. Your net worth remains unchanged. Accounting EquationAssets = Liabilities + (Shareholders or Owners equity) "For example, say a student buys a computer for $945. This student borrowed $500 from his best friend and saved another $445 from his part-time job. Now his assets are worth $945, liabilities are $500, and equity $445."
FAQ's: 1. Will I get in? See: electronicinfo.ca for Ontario schools. If you have a couple percent above the marks there and it's not looking at supplementary, the answer is almost certainly yes. 2. Anything else: Google it before asking.
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Haha I completely get where you are coming from on that! My bad, I was under the impression that people were arguing that OSAP loans and lines of credit in general are assets. So yes, I can see how LEFTOVER OSAP would be considered an asset, but I was still told by my advisor not to worry about it-then again my 'leftover' OSAP was just an estimate by me, as it's tough to tell if I really had anything leftover or if it was money I had earned myself in my bank account. I should have read the threads over more clearly, I was arueing that loans in general are liabilities lol.
4th Year Mac Science Student. Mac NDP VP McMaster Non Partisan Society President (and Founder) Support my campaign- http://www.facebook.com/group.php?gid=154743746530&ref=nfLets get a student elected-anything is possible!
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