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?

  • You may fill out a Continuation of Interest Free Status form to alert OSAP that you are in school full time
  • The form is available on the OSAP website
  • Please bring the completed form to the Student Financial Services office, GH112
  • Out-of-province students should consult their home province's government aid web site for specific information, and may visit the Financial Aid office for a Schedule 2, interest-free form (please bring your government-issued photo identification)
  • You must submit your Continuation of Interest-Free Status form before the end of your current semester
  • The Financial Aid office will electronically update your status with OSAP, but cannot submit the update if your study period has ended

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

  • All payments are made to the National Student Loans Service Centre (NSLSC), phone 1-888-815-4514.
  • There is a six-month grace period after your last full-time study session. You will begin your repayments after the six-month period expires.
  • Interest accumulates on your loan during the six month grace period.
  • You may start your repayments early, and save interest charges.
  • If you cannot afford to start making payments, please contact the NSLSC or follow the Repayment Assistant Program links on the Financial Consumer Agency of Canada 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