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.