Repayment and Interest-Free Status
You are responsible for planning for maintaining your "interest-free status" as you continue your studies or start the repayment process once you complete your studies.
For additional information and available resources, visit the Government of Canada's Student Financial Assistance website and OSAP website.
Maintain Interest-Free Status
Full-Time Loans
To maintain interest-free status for previous full-time OSAP loans, you must be confirmed with the National Student Loan Service Centre (NSLSC) as a registered full-time student in an OSAP-eligible program.
Confirmation of your enrolment is completed either through:
- A confirmed full-time OSAP application for the current term (confirmation of enrolment is completed each term once all required information for an OSAP application is submitted); or
- Completion of an Interest-Free Status application on your OSAP account to notify the NSLSC of your full-time enrolment.
To be eligible for continuation of your interest-free status you must be:
- A full-time student or registered in a 60% or higher course load per term (40% or higher for students registered with OSAP with a permanent disability); and
- Enrolled in an OSAP-eligible program.
If you have a restriction on your account that prevents the release of OSAP funding and are continuing with full-time registration, you must complete an interest-free status term.
Complete the "Continuation of interest-free status" forms through your OSAP account each academic year once registered.
- Confirmation can only be completed for full-time registered terms and cannot be completed if you are not fully registered at the time of form submission.
- Your previous full-time confirmed study period will be noted.
- Ensure there is no overlap in dates from your previous confirmed full-time study period and the dates indicated on your new form submission.
Forms can be completed online beginning 15 days before the start of the study period/term and must be completed at least 21 days prior to the end of the study period/term.
Forms cannot be backdated to past terms.
It is your responsibility to ensure your interest-free status forms are submitted for all registered terms every academic year.
Part-Time: Canada Student Loans Program
If you are enrolled in the current term as a part-time student in an OSAP-eligible program (20-50% course load), interest free status is available when:
- your part-time OSAP application is confirmed for the current term, or
- you've completed a Canada Student Loans Program Confirmation of Enrolment Schedule 2 online with the NSLSC On-Line Service:
- Log in to view My Dashboard
- Select the Confirm My Enrolment menu.
- Select I have a Part-time Loan within the options.
Note: If you have previous full-time loans and decide to attend school part-time (50% course load or less) interest will accumulate and you will be required to make payments on your full-time loans; however payments on your previous part-time loans can be deferred.
If you are enrolled in the current term as a full-time student (60% course load or higher, or 40% course load or higher for students registered with OSAP with a permanent disability) in an OSAP-eligible program, interest accumulation of your previous part-time and full-time OSAP loans will be placed on hold if you have:
- a full-time OSAP application for the current term, or
- completed a Continuation of Interest-Free Status application for full-time students.
Repayment
All repayment of funding is processed through the National Student Loan Service Centre (NSLSC).
- Ensure you review your NSLSC online account regularly for notifications in your secure NSLSC inbox.
- Additional options for managing your loans and updating your contact information is available on the NSLSC online account dashboard.
The NSLSC offers:
- Online webinars on demand to educate you about your loans in general (Orientation Presentation) and about what to do when it is time to repay your student loan including the repayment process.
- Hints and tips on how to save on interest, and what to do in the event that you are having difficulty making the payments (Repayment Presentation).
The NSLSC is also on YouTube and Twitter! Check their channels for more information on the support they offer borrowers throughout their student loan experience.
Overpayment
A grant or loan overpayment is when you receive more grant or loan funds than you should have (e.g. you change your course load, withdraw from your study period or update your income reported on your application after you have received your OSAP funding).
Laurier student account credits that result from tuition adjustments (due to course load changes, drop to part-time studies or withdrawal) may be transferred on your behalf to the NSLSC to repay the grant or loan overpayment as per your OSAP agreement.
Grant to Loan Conversion Process
Normally, OSAP grants are money you do not need to repay. However, all or part of your OSAP grants may be converted into a loan if:
- You withdraw from studies or stop taking the minimum course load within the first 30 days of your study period.
- At the end of the study period, as a result of an OSAP reassessment, you’re not entitled to all or part of the grant that you received (e.g. due to dropped courses, withdrawal or unreported income).
- The income reported in connection to your application can’t be verified within 12 months from the start of your study period.
Grant to loan reviews may not be completed by the Ministry until after the end of the academic year and can take several months after this before final updates are communicated through your OSAP application and updated on your NSLSC account.