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Queen's University
 

University Registrar - Student Awards

Student Restriction Issues (Other than Academic Progress)

While the FAAs monitor, review and process academic progress issues, only the Ministry or the federal government/NSLSC can review or provide clearance for all other “student restriction” issues. These other “student restrictions” result from issues such as:

  • OSAP defaults;
  • debt reduction:  
  • Debt Reduction in Repayment (DRR),
  • Repayment Assistance Plan (RAP) Stage 2, or
  • Repayment Assistance Plan for Persons with Permanent Disabilities (RAP-PD);
  • Significant income variances; and
  • breach of contract.

The borrower may have any of the following:

  • federal restrictions only;
  • provincial restrictions only; or
  • federal and provincial restrictions.

The following information outlines the procedural issues and documentation requirements for reviews of this nature.

Note: Student restrictions may prevent the student from applying for OSAP through the online web application; however, the web will display information to the student that outlines the nature of the restriction and the applicable remedy. Students may elect to complete and submit a paper application while decisions are being made to avoid the possibility of missed program deadlines or late application penalties (i.e., application received in excess of 45 days following the study period start date).

Student restrictions apply to future eligibility for further OSAP assistance, (i.e., loans, grants, bursaries and scholarships, and interest free status). Despite a student restriction, students who have not defaulted on their student loan(s) may remain eligible for repayment assistance programs such as:

  • Revision of Repayment Terms;
  • Repayment Assistance Plan;
  • Severe Permanent Disability Benefit (Ontario);
  • Permanent Disability Benefit (Canada).
Students should be directed to the National Student Loans Service Centre to discuss eligibility for repayment assistance.

 

Federal Restrictions

Students who have federal restrictions (e.g., they have defaulted on their federal student assistance debts or have received Debt Reduction in Repayment, RAP Stage 2  or RAP-PD on federal loans) will have a restriction on their file. To obtain clearance from the restriction, they must contact the Government of Canada (Human Resources and Social Development Canada (HRSDC) – Canada Student Loans Program (CSLP). The student should be directed to contact HRSDC-CSLP, via the National Student Loans Service Centre, at the following address:

National Student Loans Service Centre

PO Box 4030

Mississauga, Ontario L5A 4M4

Telephone: 1-888-815-4514

Note: the steps that the student must take before they can receive clearance from the federal government will vary depending on the restriction. For example, a student with Canada Student Loans in default would be required to make the minimum payments necessary to bring the loan back into good standing (e.g., repay all outstanding interest and make the equivalent of two monthly payments).

If the student receives federal clearance and is approved for additional federal funding, then HRSDC-CSLP will provide the student with a written clearance decision, known as a Clearance Letter.

  • The HRSDC-CSLP will notify the Ministry that the student has received clearance through an automatic electronic file transfer. When the Ministry receives electronic notice of the clearance, the Ministry will update the student’s OSAP file and eligibility for further federal funding under OSAP will be considered. Typically, the Ministry may receive the electronic clearance notice several weeks after the clearance letter is sent to the student.

Documentation required:

  • None. Since federal clearance is communicated electronically between HRSDC-CSLP and the Ministry, FAAs are not required to send any documentation to the Ministry to request clearance. Notes: “Conditional” Clearance Letters issued by the federal government outline the steps the student must take in order to receive official federal clearance. These letters do not provide federal clearance and as a result, students who received these letters are not included in HRSDC-CSLP’s electronic clearance notice that is sent to the Ministry.
  • A copy of a letter from a lender (e.g., the NSLSC) indicating the student’s federal assistance is in good standing will NOT be accepted in lieu of the electronic clearance notice from HRSDC-CSLP.
If the student only has a federal restriction, federal clearance will allow the OSAP application to process for full funding, depending upon all other eligibility factors. If the student only has a federal restriction, then provincial clearance is not required.

 

Provincial Restrictions (Default and Debt Reduction)

Students who have a provincial restriction on their file because they have defaulted on their provincial student assistance debt or because they have received provincial debt reduction are not eligible for further provincial assistance until the provincial debt has been repaid in full. The process for students to determine the current status of their debt and make payments on their debt varies depending on whether or not the student has defaulted on their provincial student assistance debt.

a) Provincial default

Students who have a provincial restriction on their file because they have defaulted on provincial student assistance debts may contact the Collection Management Unit to determine the current status of their provincial debt and which private collection agency currently has the debt:

Collection Management Unit

40 Elm Street Suite 41A

Sudbury, ON P3C 1S8

Telephone: 416-326-0500

Toll free within area codes 905, 705, 613, 519, 807 & 416:

1-800-387-5604

Fax: 416-326-0526

b) Provincial debt reduction:

If the student has received debt reduction on provincial student assistance debts and the debt is currently in good standing, that is, the student has not defaulted, the student must be advised to contact the following to confirm the status of their debt and to make payments:

Contact the National Student Loan Service Centre for Ontario Student Loans issued after July 31, 2001.

Once the provincial debt has been paid in full, students can request a review of their situation to determine whether they are eligible for further funding.

Documentation required:

• A letter from the student requesting a review of their eligibility for further provincial funding, including information on the current status of their provincial debt; and

• Proof that the provincial debt has been repaid in full (e.g. most recent statement of account from the agency holding the debt).

If the student has a provincial restriction only, then federal clearance is not required.

 

Provincial and Federal Restrictions

If the student has a federal and a provincial restriction issue, then upon receipt of proof of federal clearance from the student, the Ministry will release the current OSAP application for processing for federal funding only.

Additional provincial funding will be provided once two conditions have been met:

  • proof of federal clearance through electronic clearance notice (as described above); and
  • completion of a successful review to remove the provincial restriction.

 

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Kingston, Ontario, Canada. K7L 3N6. 613.533.2000