What are changes to OSAP during the pandemic?

During the outbreak of novel coronavirus, or COVID-19, OSAP and NSLSC have suspended loan repayment and interest accrual.

What is OSAP?

The Ontario Student Assistance Program (OSAP) and the National Student Loans Service Centre (NSLSC) provide loans to students to attend college or university. Generally, six months after a student completes their studies they are required to pay these loans back with interest. During the outbreak of novel coronavirus, or COVID-19, OSAP and NSLSC have suspended loan repayment and interest accrual.  

What is interest?

Six months after graduation, OSAP loans begin to collect interest. Interest is a percentage of loans that is added to the total amount borrowed until it has been paid in full. 

What is happening to student loans during COVID-19? 

Until September 30, 2020 students are not obligated to repay their OSAP loans. The NSLSC has automatically stopped collecting pre-authorized debit payments, and payments made by other means can resume in October 2020. Interest accrual on loans has also been suspended until October 2020. 

Recent graduates whose non-repayment period will end during the suspension will not have to begin repaying until October 2020 and their loans will remain interest-free until this time. 

Can I still apply for financial assistance? 

OSAP is still accepting applications from new and returning students during COVID-19. It is important to review your college or university’s policies on mandatory deposits and deadlines to pay tuition fees to secure your place in school.