Paying back OSAP: the grace period, interest and help if you can't pay

Ontario says: “You have six months after you graduate or leave full-time studies before you need to start repaying your OSAP loan.” That six months is the grace period. canada.ca calls it the “non-repayment period.” Sources: ontario.ca, canada.ca, start repaying.

• canada.ca says the period starts after you finish your final term, go from full-time to part-time studies, or leave school or take time off.
• Ontario says you can extend the grace period 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. Read the Ontario page for the exact conditions.

Within six months after you finish, the NSLSC sends you a package with your first payment date and the interest rates used to work out your payment. Ontario says the repayment notice in your NSLSC account also shows your repayment start date.

Most OSAP loans have two parts: a federal part (Canada Student Loan) and an Ontario part. You repay both through the NSLSC. Need a refresher on signing your loan paperwork? See our MSFAA and NSLSC guide.

The two parts can get different help. Ontario says “students may qualify for different levels of assistance for their federal and provincial loans.” Source: ontario.ca.

On the date checked above, ontario.ca says:

• Federal part: “Effective April 1, 2023, Canada will not charge interest on the federal portion of an OSAP loan.”
• Ontario part: “Ontario interest rate is calculated at prime rate plus 1%.”
• During your grace period: “You will be charged interest on the Ontario portion of your loan during your six-month grace period.” Ontario says that interest is added to your loan principal.

The prime rate changes, so we do not print a percentage. Your NSLSC account shows your current rate. Source: ontario.ca.

canada.ca also says you get a 15% tax credit on interest you pay on government student loans each year (canada.ca, repayment information). Check how it applies to you with the CRA or a tax professional. For the tuition side, see our T2202 guide.

Ontario says you make loan payments to the NSLSC, not to OSAP. Your NSLSC account lets you check balances, update contact information, apply for repayment assistance and ask for changes to your repayment terms. Ontario says payments are typically based on a 9.5-year schedule, which can be extended up to 14.5 years, and that a longer schedule increases the total you repay because more interest builds up. Ask the NSLSC what a longer schedule means for you before you choose.

Sign in or register at the NSLSC site. Canada.ca says you now sign in through My Service Canada Account (MSCA). Keep your contact details current so notices reach you.

RAP is a government program for borrowers who are having trouble paying. You use it through the NSLSC. There is one RAP application, but the federal and Ontario programs have separate rules.

• Who can apply. Ontario says you must be a resident of Canada and your loans must be in good standing (not in default). canada.ca says your loans must be in repayment and up to date. Sources: ontario.ca, canada.ca RAP.
• What you pay. Your payment is based on your family income and family size. Ontario says it “will never be more than 20% of your family income.” Your NSLSC account shows what you would pay.
• Income limits are different for the federal and Ontario parts of your loan, so check both pages: Ontario RAP and Canada RAP.
• How to apply. Online through your NSLSC account, or with a paper application sent to the NSLSC. canada.ca says you can apply as soon as you start repaying and any time while in repayment.
• Reapply. Both pages say you must reapply every six months.
• Other help. canada.ca also lists RAP for Borrowers with Disabilities and the Severe Permanent Disability Benefit on its repayment assistance page.

Do not wait until you miss a payment. canada.ca says to contact the NSLSC to talk about options whether or not you missed a payment.

You may not need to start repaying. Ontario says you don’t need to start repaying if your school confirms your enrolment for the next study period and you are approved for OSAP for full-time students or for Continuation of Interest-Free Status. If you are still studying but not getting OSAP, Ontario says you can apply to keep your previous loans interest-free while you are in school. Details and the right application for full-time, part-time or micro-credential students are on Ontario’s page After you apply for OSAP. Ask the NSLSC how this applies to your own loans and dates.

See also Keep your student aid and dropping a course.

• NSLSC: csnpe-nslsc.canada.ca. Ontario lists 1-888-815-4514 (toll-free in North America; TTY 1-888-815-4556) for Canada-Ontario integrated loans, including loans in default.
• If your Ontario Student Loan is in default: Ontario lists the Ministry of Finance, Account Management and Collections Branch at 1-866-668-8297 (in Canada). For Canada Student Loans in collections, Ontario lists 1-866-864-5823 to confirm which collection agency holds your account. Numbers are as listed on the date checked; confirm before calling.
• Your school’s financial aid office: how to talk to them.
• Words you don’t know: student aid words explained.

• How to apply for OSAP
• When do you get your OSAP money?
• The OSAP 60-day deadline rule
• OSAP vs private loans

All read on November 15, 2026.

• ontario.ca, Pay back OSAP
• ontario.ca, After you apply for OSAP
• canada.ca, Start repaying your student loans
• canada.ca, Repayment assistance
• canada.ca, Repayment Assistance Plan
• canada.ca, Repayment information
• National Student Loans Service Centre