OSAP requires that you start repaying your loans six months after you cease to be a full-time student. For example: If your full-time studies end in April, you would begin making monthly payment towards your loan at the end of November, unless you became a full-time student again by then.
You will be charged interest on the Ontario portion of your loan during your six-month grace period. This interest will be added to your loan principal (the balance of money you borrow).
The Federal portion of your loan will not accumulate interest. Effective April 1, 2023, the Government of Canada has permanently eliminated the accumulation of interest on all Canada Student Loans, including loans currently being repaid. You continue to be responsible to pay any interest that may have accrued on your loan before April 1, 2023.
Frequently Asked Questions
When you arrange to repay your Student loans, this is called consolidation.
During the six-month non-repayment period after you leave school, the service provider will mail you a Consolidated Student Loan Agreement for your Canada Student Loan(s), Provincial Student Loan or integrated student loan.
This agreement provides information about:
The amount of your loan
Your interest rate
Your repayment term (how long it will take to repay your loan)
The amount of each loan payment
Your first payment date
You are responsible for:
Repaying your loan and all accrued and/or capitalized interest according to the terms of your Consolidated Student Loan Agreement
Notifying the service provider if you change your address, your name or your phone number
Notifying the service provider if you leave or transfer to another school, change your courseload, or change your graduation date
The acceptable payment methods are:
Pre-authorized Payment Plan
Telephone Banking
Internet Banking
Cheques – Monthly and Post-dated
Money Orders
Bank Drafts
You must ensure that your payments are received at the service provider before the scheduled payment date. If you send the payment on the payment date, it could be received by the service provider a few days after the due date, causing collection activity.
Visit Pay Back OSAP page for updated information.
Yes. A student loan tax credit allows you to deduct the interest that you pay on your student loans each year. This credit applies to interest payments you make on both your federal and provincial or territorial student loans, and the appropriate documents will be sent to you by mail for you to use when you file your taxes. It does not apply to interest payments you may make on any loans held with a private lender such as a student line of credit with a financial institution.
If you have trouble finding employment or find it difficult to repay your Student Loan because of financial hardship, there is help. Programs such as Repayment Assistance Plan are available to either defer or reduce your required monthly payment. The Repayment Assistance Plan will help you manage the Canada and Ontario Student Loan.
In addition to your minimum monthly payments, you can make lump sum payments, or increase your monthly payment amount for your loan at any time during the life of your loans. These extra amounts will reduce your principal faster and therefore reduce the amount of interest you pay on your loan. You can also pay your loans in full at any time without penalty. Contact your service provider to obtain your current balance as it will change daily.
Yes, there are a number of resources you can take advantage of on the internet. A great resource is National Student Loans Service Centre (NSLSC), the Government of Canada’s website to help Canadians save, plan and pay for post-secondary education.
The NSLSC website allows you to sign up for an online account and also allows you to do the following:
Check the status of your student loan
Check the balance of your loan(s)
Review details of new loans you’ve recently received
Update your Mailing and Permanent Addresses and other contact information on-line
Review your loan payment and transaction history
Receive helpful information about your loan in your Personal Message Centre
Customize your repayment amount ~ use your on-line account to increase or decrease your monthly payment amount
Apply for Repayment Assistance Plan (RAP). If you qualify for RAP, you will have reduced or no monthly payments for up to six months at a time.
Access your T4A on-line: Tax slip is used by the students to declare the amount of grant funding that was received as income on their taxes.