Hi
I am getting Student Loan for my Wife, will this be counted as Income for this year,
does this Imply that I have to pay tax for this amount,
even though Govt. is not charging any Interest for the Loan amount,
Someone, please explain if it is worth going for this Loan, does it make economic sense.
Thanking you in advance

Are you getting the loan through OSAP. Is it true that they are not charging you interet. I am also researching this topic.

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smile ...

I had taken a loan from OSAP.
In my case during the period of studies...there is no interest. After this period the Bank DOES charge interest. The govt stood as a guarantor for the loan amount. The interest can be used to claim tax deductions. I was given a 15-20 yr(dont remember details) period to pay off the loan. Its repayable at any time without penalty.

However, how are you getting the student loan for your wife? The student is the one eligible for the loan afaik. In anycase, it was not considered part of my income

*Its been 7 yrs and things may or may not have changed wrt to the terms and conditions of the loan. *

From my experience...the loan was the best investment I've ever made to date. Its helped me accumulate many times its amount over the period of 7 short years. However, thats just MY experience. So for me it was more than worth it....EVEN if it had taken me the original term of the loan to pay it off.

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Any loan which you have to repay is not counted towards your income, let alone Student Loan.

OSAP loans are given to students guaranteed by the Provincial Government and are interest free till such time you are studyinging. After completion of your course it starts accumulating interest from the time you start regualar employement or 6 months, whichever is earlier.
At least this is the case for OSAP loans for students going for post secondary education in Ontario.

However, in your case you have to find out your Province's policies about these types of stundents loan on which you are not paying any interest.

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Pramod Chopra
Senior Mortgage Consultant
Mortgage Alliance Company of Canada

Hello sir
how are you? Long time, no communication. I am still continuing masters in U of saskatchewan, if you happen to come to saskatoon do visit me
my contact details are:

Pankaj khanna
E-mail
Phone 306-978-4639

no it won't be counted towards yearly income.