Interest-Free Status for Students with Full or Part-time Government Loans

Interest-Free Status for Full-time Loans

Students do not have to make payments on OSAP, and out of province government student loans, while they are in school full time. Additionally, government loans are interest-free while a student attends post-secondary full time. To qualify for payment-free and interest-free status on full-time loans:

• Students must be enrolled in at least 60% of a full course load (1.5 credits) each semester
• Students with a permanent disability must be enrolled in at least 40% of a full course load (1.0 credit) each semester

How does OSAP know I am in school full time?

• If you are receiving OSAP (or out-of-province) funding, the Government is updated about your full-time status when your funding is released.

What if I am not taking OSAP for a semester?

• To submit an Interest-Free status form online, log on to your OSAP account. Alternatively, you can download the paper form from the OSAP website and submit it to Student Financial Services, GH112.
• Submit requests up to 15 days before the start of your study semester and no later than 21 days before the end of your study period. 
• Late requests cannot be processed.

What if I am not receiving out-of-province funding for a semester? 

Out-of-province students should consult their home province's government aid website for specific information, or contact the NSLSC . The following provinces now provide students with the option to complete their interest-free status request online:

• Alberta
• British Colombia
• Saskatchewan
• New Brunswick
• Newfoundland & Labrador
• Nova Scotia

For all other provinces, you must complete a paper Continuation of Interest Free Status (Schedule 2) form and submit it to the Student Financial Services office.

When will I go into repayment after my studies have ended?

You have six months after you graduate or leave full-time studies before you need to start repaying your OSAP loan. This is your 6-month grace period. You will be charged interest on the Ontario portion of your loan during your 6-month grace period. This interest will be added to your loan balance (“loan principal”). 

You will be making payments to the National Student Loans Service Centre (NSLSC), not to OSAP. The NSLSC also provides information and webinars about student loan repayment options (i.e. Repayment Assistance Plans).

If you cannot afford to start making payments or require more information, please contact the NSLSC or follow the Repayment Assistant Program links on the Government of Canada’s or OSAP websites.

Interest Free Status for Part Time Loans

• You are not required to make loan payments while you are in school
• Please note that interest will accumulate on your part-time loan while you are in school

How to maintain interest-only status & avoid repayment while in school:

• If you are taking more part-time loan funding, then the Government is signaled that you are in school when your loan is processed and no further action is required by you
• If you are not taking any loans, or are taking full-time loans, and have previous part-time loans, it is important to keep your part-time loans in payment-free status
• To keep your part-time loans payment free, please visit the Student Financial Services office and ask for a Canada Student Loans Program Confirmation of Enrolment (Schedule 2)
• The Schedule 2 can be completed on-line; please visit the Government of Canada’s website