After graduation or upon leaving full-time studies you have a grace period of six months before you need to start repaying your OSAP loan.
During this grace period, you will not be charged interest on the Ontario portion of your loans but you will be charged for interest on the Canada portion of your loans, if any.
The interest rates on your first payment date are used to figure out the monthly payment for your loan (Ontario = prime rate + 1%, Canada = prime rate + 2.5%). If interest rates change, your monthly payment stays the same. However, the amount applied to your loan balance will change.
Estimate your monthly payments
During the six months grace period, you'll get a package from the National Student Loans Service Centre with information about:
- your total number of payments
- the date of your first payment
- the interest rates used to calculate your payment
The grace period could be extended by another six months if you own or co-own a new business in Ontario, or work for or volunteer with a not-for-profit organization
The loan payments are made to the National Student Loans Service Centre and not to OSAP.
Your payments are based on a 9.5 year pay-back schedule. This pay-back schedule is the average amount of time it takes to pay back OSAP student loans.
Permanent Disability Benefit
You can apply for the Severe Permanent Disability Benefit if you have a severe permanent disability and you can't attend work or school. Contact the NSLSC.
Extend Your Repayment Period
You can lower your monthly payments by extending your repayment period from 9.5 up to 14.5 years.
Get Repayment Assistance
You can apply to lower your monthly loan payments for six months at a time. If your application is approved, you and both the provincial and federal governments will be making payments on your loans.
Use the Repayment Assistance Estimator to see if you could be eligible for repayment assistance.
Your payments will grow gradually as your income grows but are never more than 20% of your family income.
You can apply for the Repayment Assistance Plan through an online application on your NSLSC account or complete a paper application. The application serves for six months only. If you need to extend the assistance in repayment then you have to re-apply to the Repayment Assistance Plan every six months.
Defaulting on Your Loans
You will be in default if you don't make your loan payments. This means that:
- Your debt will be turned over to a collection agency
- You will be reported to a credit bureau
- You could be ineligible for further OSAP until the default is cleared
- Your ability to get a car loan, mortgage or credit card can be affected
- Your income tax refund and HST rebate can be withheld
- Interest will continue to build up on the unpaid balance of your loan
Your OSAP debt will only be erased when you have paid it off in full.
You need to repay your OSAP if:
If you declare bankruptcy, you still have to pay your OSAP loan.
Apply to the Repayment Assistance Plan if you can't make these monthly payments.
If you've been out of full-time studies for more than five years, you can ask a bankruptcy court to have your OSAP loan be discharged. Contact your bankruptcy trustee for help.
You can always login to your National Student Loan Service Centre Account to:
- Check your student loans status and balances
- Update your contact information
- Apply for repayment assistance
- Request a change to the terms of your repayment
Many of the larger banks in Canada offer lines of credit to study outside of Canada. Please ask your bank if they have an educational line of credit.
Satisfactory Academic Progress
Two criteria are monitored, qualitative progress and quantitative progress.