OSAP Withdrawal and Repayment Information
OSAP requires students to remain enrolled in a course load of at least 60% in each semester (40% for students with permanent disabilities) to maintain eligibility for funding. For most undergraduate students this is 1.5 credits per semester (1.0 for students with disabilities in their OSAP profile). Course loads cannot be averaged over two semesters.
OSAP’s definition of full-time studies may be different than your University of Toronto faculty’s definition of full-time studies.
If you drop below the course-load requirements mentioned above, your OSAP will be recalculated. Your repayment will begin 6 months from the date of your reduction in course load. Your lender(s) will be notified of this change. It is your responsibility to set up a monthly repayment schedule with your lender(s) and ensure your address is up to date.
Registered as a Full-Time Student during the Winter Term: How to re-apply for Full-time OSAP
If you withdrew in the fall term and will return to full-time studies in the winter term, you will need to submit an an Online OSAP Reinstatement Request. As part of the request, you will be asked to upload a U of T Academic Progress form.
The final deadline to submit your request is 40 days before the end of your full-time studies for the term. However, you should provide these forms immediately since you will not receive additional OSAP without this information. It is strongly recommended that you submit your application no later than January 31, 2023.
Please note: The withdrawal from full-time studies in the Fall term means there’s an overpayment in your OSAP account, which will be deducted from the Winter term OSAP assessment. As a result, students in this situation may receive little or no OSAP in the winter term.
Return to School and Place Your Loans in Interest-Free Status: If you do not need Full-time OSAP
If you return to school in at least 60% of a full-time course load (40% with a disability) for at least 6 weeks, you can re-activate your interest-free status on outstanding Canada/Ontario Student Loans even if you do not take out additional loan funding.
Submit an online application for Continuation of Interest-Free Status application, through the OSAP website, after classes begin. Once processed, this application lets your lender know you are back in full-time studies.
Satisfactory Academic Progress
OSAP recipients must complete 60% of a full-time course load in each semester (40% for students with disabilities). For most undergraduate students this means you must obtain at least 1.5 credits in each term you get OSAP funding for (1.0 credit per term for students with disabilities). Failure to meet this expectation will lead to OSAP academic probation. Subsequent failure in a second academic year will lead to a loss of OSAP funding for a minimum of 12 months.
You will be assessed with an overpayment if OSAP determines that you received too much grant and/or loan funding at the end of the school year. Your OSAP grants could be converted to loans. You will be restricted from OSAP eligibility if you have three overpayments of $2,000 or more, or an overall overpayment total of $10,000 or more. Your notice from OSAP will tell you how much you need to repay. If your withdrawal results in a credit balance on your tuition and fees account, U of T may return some or all of this to OSAP to reduce the balance owing on your loans.
When does repayment start?
OSAP repayment starts six months from your end of full-time studies – assuming your lender has the most up to date information about your most recent study period. Should you complete your program earlier, your repayment begins six months from that date. Your lender will mail you repayment information just prior to the end of the six months.
Unable to Repay Canada/Ontario Student Loans?
If you are unable to repay your student loans due to low income, lack of employment, illness or disability, you should investigate the Repayment Assistance Plan. Applications are available from the National Student Loans Service Centre or by phone at 1-888-815-4514.
Keep your contact information up to date
Make sure that your lender has your current email and mailing address. If they can’t reach you, you’ll miss important information about your student loan status.
- Update the National Student Loans Service Centre on their website or by calling 1-888-815-4514.
- Update your address with OSAP by logging into your OSAP account.
- Update your address with the University via ACORN.
How is interest charged?
OSAP loans are interest-free while you are in full-time studies. Once you leave full-time studies, interest is charged on your account, but you do not need to make payments for the first six months. You can choose to begin payment early. Repayment of the loans is “open” and you can increase payments at any time.
Most students who have borrowed from OSAP have both Canada and Ontario Student Loans. The normal floating interest rate for repayment is the prime lending rate for Canada Student Loans and prime plus 1% for Ontario Student Loans. The accumulation of interest on Canada Student Loans has been suspended until March 31, 2023 – however, you are still expected to make payments.
The OSAP website has more information about repayment.
Or you can contact your lender:
National Student Loans Service Centre: 1-888-815-4514
The NSLSC also offers a Webinar about student loan repayment that you can watch any time.
For OSAP loans borrowed prior to September 2001:
- CIBC National Student Centre: 1-800-563-2422
- Royal Bank Student Loan Centre: 1-800-363-3822
- Scotiabank (Bank of Nova Scotia) Student Loan Centre: 1-800-972-6842