OSAP (Ontario Student Assistance Program) is a single application for both federal and provincial student aid. It covers grants, which you never repay, and loans, which you do. You don’t apply to the Canada Student Grant and OSAP separately. One application gets you both.
Grants vs. Loans: What You’re Actually Getting
Your OSAP package will include some combination of grants and loans. Grants are free money with no repayment. Loans are borrowed money you pay back after school. You’re automatically considered for both when you apply, and you can decline the loan portion after approval if you don’t want it. For a detailed breakdown of how grants and loans differ, see Canada Student Grant vs. Canada Student Loan.
The loan itself is two loans bundled together: a federal (Canada) portion that makes up roughly 60–80% of your total, and a provincial (Ontario) portion that makes up the rest. Both are repaid through one combined monthly payment to the National Student Loans Service Centre (NSLSC). You don’t manage them separately.
Who Qualifies
You must be an Ontario resident and a Canadian citizen, permanent resident, or protected person. International students don’t qualify. If you moved to Ontario from another province for school, you apply through your home province’s program, not OSAP.
You won’t qualify if you’ve defaulted on a student loan before, if your income and assets are high enough to cover your costs, or if you’ve hit the lifetime funding limit (340 weeks for most programs, 400 for doctoral studies, 520 for students with disabilities).
Extra funding is available for Indigenous students, students with a permanent or prolonged disability, and youth in or from extended society care.
How Much You Get
OSAP calculates your aid based on your educational costs (tuition, books, equipment, living expenses), whether you’re full-time or part-time, and your personal and family income and size. RESP withdrawals don’t count against your eligibility.
How to Apply
Create an account at osap.gov.on.ca. You’ll need your SIN, your recent tax information, and your parents’ or spouse’s tax info if applicable. The application takes about 15 minutes. Submit at least 60 days before your study period ends.
After approval, you’ll sign the Master Student Financial Assistance Agreement (MSFAA), a one-time loan contract covering both your federal and provincial portions. Your financial aid office may ask you to upload supporting documents.
Neither the federal nor provincial portion charges you interest while you’re enrolled full-time. Your balance stays frozen until you leave school or graduate. If OSAP doesn’t cover your full costs, see Student Line of Credit vs. Student Loan for options to fill the gap.
Repaying Your Loan
Repayment starts six months after you graduate or leave school. During that grace period, the provincial portion starts accruing interest at prime plus 1%, added to your principal. The federal portion stays at 0%.
All payments go to the NSLSC. The standard repayment timeline is 9.5 years. You can extend to 14.5 years for lower monthly payments, or pay off faster at any time.
Interest rates during repayment:
- Federal portion: 0% (interest-free since April 1, 2023)
- Provincial portion: prime rate plus 1%
Interest paid on the provincial portion qualifies for the student loan interest tax credit (Line 31900). Make sure you’re claiming it.
If You Can’t Repay
Apply for the Repayment Assistance Plan (RAP) before you miss payments. Your monthly payment will never exceed 10% of your household income. If your income is low enough, you pay nothing.
RAP works in two stages. The first covers interest you can’t afford, keeping your principal frozen for up to 60 months. The second covers both interest and principal, with your remaining debt eliminated within 15 years of leaving school. You reapply every six months.
If you reach 270 days of missed payments, your loan goes into default. Consequences include wage garnishment, liens on property, credit bureau reporting, loss of future OSAP eligibility, and your tax refunds (GST/HST, Ontario Trillium, Canada Carbon Rebate) being applied toward your debt. Use RAP before it gets to this point.
Heads Up for 2026
If you’re starting a program on or after August 1, 2026, more of your provincial OSAP funding will come as loans rather than grants. The federal portion is unaffected. If you’re starting school around that time, your grant-to-loan ratio will shift, so factor it into your budget planning early.
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