Maintaining Interest-Free Status

Please refer to the OSAP website for the policies and regulations pertaining to the Continuation of Interest Free Status. The information below is designed to assist students, not replace the OSAP website.

A student's OSAP loans will remain in interest-free status and non-repayment while they are enrolled in full-time post-secondary studies (60% course load, or 40% course load for students with a permanent disability in each term of study) conditional on the student notifying the National Student Loan Service Centre (NSLSC). 

Once you cease to be a full-time student (i.e. finish your current academic year) interest will begin to accrue on the provincial portion of your OSAP loans (federal loans are interest-free during the 6-month grace period). You are given a 6-month grace period by the NSLSC during which you must either:

• Consolidate your OSAP loans and prepare to go into repayment, OR
• Notify the NSLSC that you have once again enrolled in full-time studies

Financial Aid and Awards cannot confirm enrolment after the study period has ended. It is a student's responsibility to notify the NSLSC when they register in full-time studies.

This can be achieved in one of 2 ways:

1. If you are receiving OSAP assistance for the current academic year: Submit your OSAP application and provide all required documentation. Once your application is complete the ministry will request that Queen's confirm your enrolment for the current academic year. This confirmation is required to release your OSAP funding and place previous OSAP loans in interest-free status
2. If you are enrolled in full-time studies but not receiving OSAP assistance for the current academic year: Complete a Continuation of Interest Free Status (CIFS) application (see below)

If at the end of the 6-month grace period you have not notified the NSLSC (via one of the 2 above methods) and you are once again enrolled in full-time studies, your loans will go into repayment. 

• The NSLSC can begin to withdraw the minimum monthly payments from your bank account once the 6-month grace period has elapsed

Once you have notified the NSLSC that you are enrolled in full-time studies your previous loans will be placed into interest-free status and non-repayment provided that your previous loans are in good standing.

• It is a student's responsibility to notify the NSLSC (via one of the 2 above methods) that they are enrolled in full-time studies at the beginning of each academic year

Ontario students may submit an online “Continuation of Interest-Free Status (CIFS) Application” available via their account on the OSAP website.

• The Continuation of Interest-Free Status Application can be submitted as early as 15 days prior to the start of your study period
• However, it must be submitted no later than 21 days before the end of your study period
• Your study period must be between 6 and 52 weeks in length

Recommended Submission Deadline

As soon as possible after completing the registration process.

Deadline to Ensure Your Previous OSAP Loans Do Not Go into Repayment

To avoid accruing irreversible interest on your previous government loans, the lender must be updated before your six-month grace period ends.

You must be enrolled in full-time studies at the time you submit your request and the request must be submitted prior to the end of your study period (i.e., no later than 21 days before the end of your current study period).

Please Note: We can only confirm full-time enrolment for the current study period. We are not permitted to confirm enrolment for previous academic years.

The NSLSC will mail the Consolidation Agreement to the student's most recent mailing address on file with the NSLSC approximately 6-8 weeks prior to entering repayment. The Consolidation Agreement will include a reminder to complete the Continuation of Interest-Free Status application if you are once again enrolled in full-time studies.

Please be sure to keep your mailing address up-to-date with the NSLSC. This can be done by either creating an online account through the NSLSC online services available through the National Student Loan Service Centre website or by phoning the NSLSC at 1-888-815-4514.

Even if you have not received the Consolidation Agreement because you failed to update your mailing address with the NSLSC, your loans will go into repayment at the end of the 6-month grace period if you have not notified the NSLSC that you are enrolled in full-time studies (via one of the 2 methods outlined above).