Ontario Student Aid: Loans

​You can borrow through OSAP from the governments of Canada and/or Ontario. You need to pay back the loan and you will also be paying any interest on the debt.​

During academic years the interest is subsidized by the federal and provincial governments. When you withdraw or graduate from university, the Ontario government will pay the interest on your Ontario student loan for the first 6 months grace period. Once the grace period ends, you are responsible for paying the interest on both the Ontario and Canada student loans.​

If you're not receiving funds through OSAP but you are still a full-time or part-time student, you can apply for your previous loans to be interest-free while you are enrolled.


Decline a loan

When you apply for OSAP, you are automatically considered for both grants and loans. You can decline the loan if you don't want it.

If you're a full-time student, just select the “No Loan Option" that appears on your application funding summary. If you're a part-time student, you can pay back the loan immediately by contacting the National Student Loans Service Centre (NSLSC).