Thanks for your reply, Ryn. From an accounting perspective, I get what you're saying, and I think you're right about loans in general. I don't think the same logic really applies to lines of credit, though, since you can withdraw money from and deposit money into a line of credit at any time. If I withdraw money from my line of credit and put it into a savings account, would I suddenly have assets to report to OSAP? I may be wrong, but I don't think so. So why does the money that I have outside my line of credit, that I could easily put into my line of credit without fully eliminating the debt I have accrued, count as assets?
Maybe I'm missing something, but if what you are saying is true, it sounds like someone could accuse me of fraud if, right before the OSAP reporting date, I move all of my savings into my line of credit. And yet, this can't possibly count as fraud, since I have not hidden any money anywhere — it is all in the same constellation of bank accounts that link my chequing, savings, and credit accounts. To me, it seems like the money I have in my accounts is essentially equivalent to money I could take out of my line of credit and put into my chequing right now.