Repaying the Ontario Student Assistance Program

Graduating or Halting Full-Time Studies

You have a grace period of six months after graduating or leaving full-time studies before you are obligated to initiate repayment of your OSAP loan. This six-month respite is commonly referred to as a grace period.

During your grace period, you will incur interest on the Ontario portion of your loan. This interest will be added to your loan principal, which refers to the outstanding balance of funds borrowed.

Compute your monthly payments

The interest rates enforced on your initial payment date are utilized to calculate the monthly payment for your loan. (For Ontario, the interest rate is the prime rate plus 1%, and for Canada, it is the prime rate plus 0%.)

In cases where interest rates fluctuate, the amount allocated to repayment of the loan principal remains fixed, ensuring the monthly payment remains unaffected.

Access your National Student Loans Service Centre account

With your account, you can:

• Verify the status and balances of your student loans
• Update your contact information
• Apply for repayment assistance
• Request modifications to the repayment terms

Obtain your repayment package

Within the six-month grace period following graduation or termination of full-time studies, you will receive a package from the National Student Loans Service Centre. This package includes details on:

• The total number of payments you are required to make
• The date of your first payment
• The interest rates employed in the calculation of your payments

Extend your grace period by another six months if you:

Initiate loan repayment

Loan payments must be made to the National Student Loans Service Centre, not OSAP.

Your payments will be determined according to a pay-back schedule that spans a duration of 9½ years. This pay-back schedule represents the average length of time required to fully repay an OSAP loan.

Repaying your student loans not only fulfills your financial obligations but also serves as a valuable opportunity to establish and enhance your credit score. If you wish to expedite the repayment process, you have the freedom to make additional payments on your loan at any point in time.

Should you encounter difficulties in repaying your loan, you may be eligible to receive repayment assistance. This valuable support can be obtained by visiting the provided link (https://www.ontario.ca/page/#section-4).

In cases of severe permanent disability that prevent you from working or attending school, applying for the Severe Permanent Disability Benefit is an option worth considering. For more information on this benefit, please contact the National Student Loans Service Centre through the given link (https://www.csnpe-nslsc.canada.ca/en/home).

In order to reduce your monthly payments, you have the option to extend your repayment period to a maximum of 14½ years. This can be done by accessing your National Student Loans Service Centre account using the provided link (https://www.csnpe-nslsc.canada.ca/en/home).

Once you have successfully fulfilled all your loan repayment obligations, the National Student Loans Service Centre will promptly notify you.

If you require assistance with repayment, you have the opportunity to apply for the Repayment Assistance Plan (RAP). This plan allows you to reduce your monthly loan payments for a period of six months. For detailed instructions on how to apply for RAP, please refer to the following link (https://www.ontario.ca/page/#howtoapplyrap).

To be eligible for the Repayment Assistance Plan, you must meet the following criteria:

- Residency in Canada

- Good standing of your student loans (i.e., your OSAP loan must not be in default and should not be restricted from receiving repayment assistance due to other reasons)

During the period in which you receive repayment assistance, you will either be exempt from making monthly loan payments for the duration of the six-month eligibility period or make a monthly payment that is affordable for you.

Under the Repayment Assistance Plan, if your income increases, your payment amount will gradually adjust, but it will never exceed 20% of your family income.

In some cases, you may not be required to make any payments at all if your gross family income falls below the maximum amounts indicated below:

- Family size: 1 - Gross monthly family income: $2,083

- Family size: 2 - Gross monthly family income: $3,254

- Family size: 3 - Gross monthly family income: $4,205

- Family size: 4 - Gross monthly family income: $4,959

- Family size: 5 or more - Gross monthly family income: $5,652

Note: If your spouse also has government student loans that are currently in repayment, your monthly affordable payments will be divided between you and your spouse based on the portions of total student loans held by each of you.

For instance, let's consider the following example:

- The total combined monthly affordable payment based on your family income is $150.

- Your loan accounts for two-thirds of the combined loan amount, while your spouse's loan accounts for one-third.

- In this scenario, your monthly affordable payment would be $100 (two-thirds of $150), while your spouse's monthly affordable payment would be $50 (one-third of $150).

For the purposes of determining your family size, it encompasses all individuals permanently residing with you, including yourself, your spouse or common-law partner, and any dependents. Dependents refer to children under 21 years of age who either live with you or are attending school on a full-time basis.

If you find yourself in a single and independent situation, your family size can be considered as 1.

Instructions for Application

There are two methods through which you can submit your application for the Repayment Assistance Plan. You have the option to:

Stages of the Repayment Assistance Plan

The plan itself is divided into two distinct stages: interest relief and debt reduction.

1. Interest Relief

During this stage, you have a maximum of 60 months or until 10 years have passed since you completed your education, whichever happens first, to benefit from interest relief.

Throughout the duration of the interest relief stage:

• your monthly payment, based on your affordability, will primarily contribute towards reducing your loan principal
• if your payment exceeds a certain amount, the remaining portion will be allocated towards covering the monthly interest
• the governments of Canada and Ontario will cover any monthly interest that is not accounted for by your payment

If, in this stage, you are not obligated to make any payments whatsoever, the governments of Canada and Ontario will take responsibility for all your monthly interest charges, ensuring that your loan principal remains unaffected.

To acquire further information, visit the National Student Loans Service Centre website.

2. Debt Reduction

After completing the interest relief stage, you will progress to the debt reduction stage. This can occur either after a minimum of 60 months of receiving interest relief or when you have been out of school for 10 years, whichever comes first.

Within the debt reduction stage:

• you will either make affordable monthly payments or no payments at all, depending on your income and family size
• if you do make a payment, it will first be allocated towards reducing your loan principal
• any remainder, if large enough, will then be utilized to pay the monthly interest

The governments of Canada and Ontario will cover any outstanding monthly interest and principal amounts that are not covered by your payment. Through their contributions, your debt will be fully repaid within a maximum period of 15 years since completing your education or within 10 years if you have a permanent disability.

To gain more information, visit the National Student Loans Service Centre website.

Repayment Assistance for Students with Permanent Disabilities

If you are an applicant with a disability:

If, when you applied for OSAP as a postsecondary student, you were confirmed to have a permanent disability, there is no need for further documentation.

However, if you were not confirmed to have a permanent disability during your OSAP application, you will be required to present medical documentation as evidence of your disability. For more detailed information, reach out to the National Student Loans Service Centre.

Repayment Terms:

If you have a permanent disability, you have the option to directly enter the debt reduction stage upon commencing repayment, without first going through the interest relief stage.

Borrowers with permanent disabilities are supported by the governments of Canada and Ontario to ensure that their loans are fully repaid within a period of 10 years.

Additionally, you can provide documentation of your disability-related expenses when calculating your affordable monthly payment. To initiate this process, follow these steps:

• Complete a Repayment Assistance Plan for Borrowers with a Permanent Disability (RAP-PD) Expenses form from the National Student Loans Service Centre.
• Provide evidence of your expenses and insurance coverage.

Modify Loan Terms

To request modifications to your monthly payment amount and repayment timeline, you can contact the National Student Loans Service Centre or the National Student Loans Service Centre for OSAP Micro-credentials Program, if applicable.

Reducing your monthly payments

Typically, when you start repaying your loan, you have a maximum of 91/2 years to complete the repayment process.

If you require additional time to pay back your loan, you have the option to extend the repayment period to 141/2 years. While this will result in lower monthly payments, please note that it will increase the overall amount you repay due to the accumulation of more interest over a longer period of time.

By modifying the terms of your plan, you have the ability to:

Calculate Your Monthly Payments

You have a grace period of six months after completing your studies before making repayments on your micro-credential OSAP loan. This grace period is interest-bearing, with the accrued interest being added to your loan principal.

To determine your monthly payment, the interest rates on your initial payment date are utilized. The interest will be calculated based on the prime interest rate plus 1%.

Receive Your Repayment Package

Within six months after finishing your studies, you will receive a package from the National Student Loans Service Centre for OSAP Micro-credentials Program. This package will contain information regarding:

• The total number of payments
• The first payment date
• The interest rates used for payment calculation

Commence Loan Repayment

Make payments for your micro-credential OSAP loan through the National Student Loan Service Centre for OSAP for Micro-credentials Program.

You have the flexibility to make repayments at any time in order to expedite the repayment process.

Complete Loan Repayment

Once you have successfully repaid your loan, you will receive a notification from the National Student Loans Service Centre for OSAP Micro-credentials Program.

If you have obtained OSAP loans for either full-time or part-time studies, you must be aware that these loans will still need to be repaid.

Receive assistance in repaying your micro-credential student loans

Qualifications

• You must be a Canadian resident
• Your micro-credential student loans must be in good standing (Good standing means that your loan is not in default and is not disqualified from receiving repayment assistance for any other reasons.)

During the period in which you receive repayment assistance for your micro-credential student loan, you will either:

• Be exempt from making monthly loan payments for the duration of the six-month eligibility period
• Make a monthly payment that is within your means

Repayment Assistance Plan for Micro-credentials

Repayment Assistance Plan for Micro-CredentialsFamily Size (Number of Family Members)Gross Monthly Family Income1$2,0832$3,2543$4,2054$4,9595 or more$5,652If you (or, if applicable, your spouse) have other government student loans that are currently being repaid, it is important to complete the Repayment Assistance Plan for Micro-credentials application thoroughly. This will ensure that all pertinent information is taken into account when determining the amount of repayment assistance you are eligible for.

How to Apply

• Fill out a paper application
• Send the completed application to the National Student Loans Service Centre for OSAP Micro-credentials Program

For further information, please get in touch with the National Student Loans Service Centre for OSAP Micro-credentials Program, using the following contact details:

Toll-free: 1-888-869-2896(within North America)

Stages of the Repayment Assistance Plan for Micro-credentials

1. Interest ReliefThe interest relief stage is available for a maximum of 60 months, or until 10 years have passed since your completion of the micro-credential program, whichever comes first.

During the interest relief stage:

• Your monthly payment that is within your means will first be allocated towards reducing your loan principal
• If your payment amount is sufficient, the remainder will be allocated towards paying the monthly interest
• The Government of Ontario will cover any remaining monthly interest that is not covered by your payment

If you are not required to make any payments during this stage, the Government of Ontario will cover the entirety of your monthly interest charges and your loan principal will remain unchanged.

For additional information on the Repayment Assistance Plan for Micro-credentials, please contact the National Student Loans Service Centre for OSAP Micro-credentials Program, using the provided contact details.

2. Debt ReductionThe debt reduction stage begins after the completion of the interest relief stage, which occurs once you have received interest relief for a minimum of 60 months or until 10 years have passed since your completion of the micro-credential program, whichever comes first.

During the debt reduction stage:

• You will either make no payments or a monthly payment that is within your means, depending on your income and family size
• If you do make a monthly payment, it will go towards reducing your loan principal first
• If your payment amount is sufficient, the remainder will be allocated towards paying the monthly interest

The Government of Ontario will cover any monthly interest and principal amounts that are not covered by your payment. Their payments will ensure that your debt is eliminated within a maximum of 15 years after you completed your micro-credential program, or within a maximum of 10 years if you have a permanent disability.

For more information on the Repayment Assistance Plan for Micro-credentials, please contact the National Student Loans Service Centre for OSAP Micro-credentials Program, using the provided contact details.

Repayment Assistance Plan for Micro-credentials for Students with Permanent Disabilities

Applying with a disability

If you did not have a permanent disability confirmed when you initially applied for OSAP or OSAP for Micro-credentials, you will need to furnish medical documentation to support your permanent disability.

For further information on the Repayment Assistance Plan for Micro-credentials, please contact the National Student Loans Service Centre for OSAP Micro-credentials Program, using the provided contact details.

Repayment TermsIf you have a permanent disability, you can apply for the debt reduction stage immediately when you enter into repayment, without previously receiving any interest relief as part of the first stage.

The Government of Ontario assists borrowers with permanent disabilities in paying off their micro-credential loans within a period of 10 years.

You also have the option to submit documentation for your disability-related expenses to be taken into consideration when calculating your affordable monthly payment. To complete this process, you must:

• Fill out a Disability-Related Expenses form from the National Student Loans Service Centre for OSAP Micro-credentials Program
• Provide evidence of your expenses and insurance coverage

For more information on the Repayment Assistance Plan for Micro-credentials, please contact the National Student Loans Service Centre for OSAP Micro-credentials Program, using the provided contact details.