Debt and tax returns, will I receive it?

[blessedj316]

Hi, so I was a student, I had OSAP and government funds. I current owe 26k my workers benefits have been being put towards it since I’ve been receiving it.
It’s almost tax season. Typically I get between 2-4K in returns.
Will I be receiving that? Or will it automatically be taken and put towards my debt?
I don’t typically have much to spare each month which is why I haven’t really been paying my loans and I’ve been planning to go back to school, unfortunately it keeps getting pushed back (2024 is my year)

I was hoping to actually use that money to pay off my debt to the school so I can return back to it (which hopefully will stop my payments for the loans)

TLDR I owe OSAP/federal loans 26k and have not paid any money on them in at least 1.5 years. will they take my tax returns or will I get that money?

 

[ragnardanneskjold]

@blessedj316 OSAP is separate kind of debt. You can claim "tuition" to help your return the form is a t2202 from your school. I've been paying off my osap for 15 years and always got my return every spring. https://www.canada.ca/en/revenue-ag...-your-tuition-education-textbook-amounts.html

 

[blessedj316]

@ragnardanneskjold I’m behind on payments. I haven’t paid them in like 1.5-2 years.

 

[ragnardanneskjold]

@blessedj316 Only if your debt has gone to collections, then you should be worried. Once they have it it'll affect everything relates to credit score. ie credit card application, future loans and mortgages.

 

[napayshni]

@blessedj316 If it is in collections you 100%will not get a return

 

[jackbauer4life]

@blessedj316 They don't talk about it very much, but on the nslsc website you should look into the repayment assistance plan. It can reduce your payments or make them zero , based on your income. Though if you haven't paid in two years I dunno if they will let you do it. I've been doing it for like 5-7 years and I always get my tax refund.

If they've been garnishing your other paid benefits, I think it's safe to assume this will be garnished as well. Not sure myself though

 

[jackbauer4life]

Also, last time I looked, you can returned to school at any time if you're paying for it yourself, but if you want another OSAP loan, they require the entire previous loan to be paid off before they will gi e you another one.

Based on some of the things you said, I really recommend calling the nslsc and asking if they have an advisor you can speak to. No offense, but It sounds like you don't really understand everything regarding your loan.

 

[freire1970]

@blessedj316 Fyi. A tax return is the unfortunate name of the collection of forms and documents that you submit to CRA detailing your unique tax circumstances. I believe you are referring to a refund.

 

[carieinney]

@blessedj316 I owe like 55k in provincial and federal loans that have not received much payment from me other than the workers benefit and ONE gst tax credit and when I was speaking with someone about student loan repayments and receiving a the gst credit, they said something about how one will still receive said gst credit based off their income or whatever. So if your income level falls under a certain bracket, and I'm not too sure which one, you should still get the tax refund and what not.

I haven't made more than like 2 minor payments otber than what has been paid using my workers benefit and one gst tax credit or w/e yet I've received the gst credit every other time after the one credit was taken then applied to the loans.

 

[aurel1a]

@blessedj316 If you havent paid in 2 years, you are most likely in collection with CRA and they will garnish your refund or part of it. You see go to your CRA Account and in your Messages you should have one mentioning that your refunds will be kept to pay towards your Federal / Provincial student loan.