What you have to pay back after you leave school depends on the amount of your debt, repayment period and interest rate.
Total repayable loan debt: The amount of OSAP loan you owe after any Ontario Student Opportunity Grants have been deducted.
Repayment period: The usual loan repayment period is 9.5 years.
You can repay your OSAP student loans as quickly as you like or take up to 15 years. The faster you repay, the higher your monthly loan payments, but the lower your total interest payments will be.
Interest rate: The amount you have to pay to borrow money.
On the provincial part of your OSAP loan, the rate is the prime rate of interest plus 1%. On the federal portion interest rate can be the prime rate of interest plus 2.5%.
6 month grace period: You do not have to begin repaying your student loan for 6 months after completing your studies.
Ontario portion of your OSAP loan: The Ontario portion of your OSAP loan is both interest free and payment free during this 6 month grace period.
Federal portion of your OSAP loan: Interest will still grow on your federal loan.