Are Students Loans a Great Opportunity?

Student loans for school OSAP

It isn’t just the young high school student that is in need of funding to help with their school cost.  Many adults at various ages are giving strong consideration to going back to school.  For some it is so they can further their chosen career that they are now employed in.  For others it is simply because they can’t find gainful employment and they need to do something to make their financial future solid.

For most it comes down to how are they going to pay for this education? In Ontario many will turn to OSAP (Ontario Student Assistance Program) for help.   Just how much and what kind of help are they going to get from this?

This student loan entity has access to many different types of student loans and grants.   There are pros and cons that come with this of student funding.

The Pros

For students who are in a solid educational position and really want and need to further their studies then having a student loan available to them is an excellent resource.

Applying for OSAP may also open up some doors for eligibility for grants that cannot be obtained through other channels. When the money being obtained is via a grant it doesn’t have to be paid back.

Sometimes to be eligible for school Bursaries the student is required to apply for OSAP even if they don’t end up getting any funding from this entity.

There is breathing room while the education continues. OSAP application for funding must take place every year. The loan accumulates interest and payment free while the student is continuing their education. So there is no pressure to pay back last year’s loans while the student is attending school this year.

There are tax credits applicable to the interest portion of the loan. This helps in the future, although this is not applicable to all types of student loans.


It is tempting to go into an educational program that just might not be right for you or may not create the end results that you are looking for. You are swayed into making the choice for that particular program because you can qualify for the loan.

The money is often given in a lump sum to handle a specific time period. It takes discipline on the student’s part to manage that money effectively. It is tempting to spend portions of the money on unrelated educational costs that it was originally intended for.   This leaves the student unable to meet the costs of the necessities which can lead them into difficulties.

Students end up start their working career with a debt load.   This is often disheartening and difficult to deal with especially if they can’t find employment in the field they were trained for at the expected amount of salary.


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Sam Seidman, CPA, CA, LPA
629 Sheppard Avenue West
Toronto, Ontario
M3H 2S3

Telephone: (416) 398-1700
Fax: (416) 398-6226

Chartered Professional Accountant, Chartered Accountant, Licensed Public Accountant


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