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. 

How to repay your loans

Loan repayment is conducted through the National Student Loans Service Centre (NSLSC). The NSLSC’s website allows you to view information regarding your loans including:

  • Your total loan amount
  • The interest rate on your loans
  • Payment deadlines
  • The method of payment you have chosen
  • The bank account that you are using for repayment

You can register for NSLSC online services here. Carefully review your information before you have to begin repaying your loans in order to ensure you are prepared to begin repayment. The NSLSC will mail you a ‘Consolidated Student Loan Agreement approximately 6-8 weeks before your first required payment. It is your responsibility to sign the agreement and to repay the loan and all interest that has accrued, as outlined in the terms of the agreement.

Postponing Your Loan Repayment

Once you have left full-time studies, OSAP offers a six-month extension to your initial six month grace-period if you meet one of two conditions:

  1. If you are an entrepreneur who is the owner or co-owner of an eligible new Ontario business, you may apply using the Grace period extension for entrepreneurs form
  2. If you are employed in a volunteer or paid position at an eligible Ontario non-profit, you may apply using the Grace period extension for not-for-profit employees form

If you meet one of these conditions and wish to receive the six-month extension, complete the correct form and submit it to the National Student Loans Service Centre (NSLSC.

Repayment Assistance Plan

If you are having difficulty making payments on your OSAP loans and accumulated interest, you could be eligible to apply for the Repayment Assistance Plan. This program lowers your monthly payments to make them more affordable.

Webinar: OSAP Repayment

The NSLSC offers free webinars to help students understand the process of loan repayment. Further information on loan repayment is also available from the Ontario Government website. You may also speak with a Financial Aid Advisor in the Office of the Registrar, or contact the National Student Loans Service Centre