How to Maintain Interest-Free Status

Maintaining your “interest-free status” means that you do not have to repay your OSAP loan while you are in school, and that the Government of Canada and/or the Province of Ontario will continue to pay the interest on your loan.

If you do not keep your loans in interest-free status, you will be required to start repaying your loan(s) within six months of the end of your last study period.

How do I maintain interest free status?

You must provide the Financial Aid Office at your post-secondary institution with a completed Continuation of Interest-Free Status / Confirmation of Enrolment form.

  1. Download, print and complete the Continuation of Interest-Free Status / Confirmation of Enrolment (Schedule 2) form.
  2. Submit the completed form to the Financial Aid Office at your campus.
  3. The information will then be electronically forwarded to your lender and/or the National Student Loan Service Centre (NSLSC).

Should you require assistance or additional information about this process, please visit osap.gov.on.ca, or contact Financial Aid.

Who can maintain interest free status?

  • Students who are beginning a co-op work term.
  • Students who have previous OSAP loans and who plan to continue their full-time studies without receiving OSAP.

Note: Students with an OSAP loan who are enrolled in a program, or who are continuing full-time studies with a new OSAP loan, will automatically maintain interest free status.