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One-Year OSAP Grace Period for Not-For-Profit Employees

Purpose

Have you recently left full-time postsecondary studies and are working in the not-for-profit sector? If yes, apply for the One-Year OSAP Grace Period for Not-For-Profit Employees to get more time before you must start making payments on your OSAP loans.

You have six months after leaving full-time studies when you don’t have to make OSAP loan payments. This is known as your six-month grace period.

If your six-month grace period has not yet ended and you are working in a paid or volunteer position with an eligible not-for-profit organization in Ontario, you may be eligible for a six-month extension to your existing grace period. This means you would get an extra six months before you must start repaying your Ontario Student Loans and/or the Ontario portion of your Canada-Ontario Integrated Student Loans issued through OSAP.

How the six-month grace period extension works

During the six-month grace period extension, no payments will be required on your Ontario Student Loan and the Ontario portion of your Canada-Ontario Integrated Student Loan. Federal government loans issued through OSAP are not covered by this program.

Once the six-month grace period extension has ended, payments on your Ontario Student Loan and the Ontario portion of your Canada-Ontario Integrated Student Loan will resume. In addition, any interest that has accrued during the one-year grace period becomes repayable.

Who is eligible?

To be considered, you must meet the following criteria:

  • You left full-time postsecondary studies within the last six months.
  • You have full-time OSAP loans not currently in repayment status.
  • You are working in Ontario at least 30 hours per week (as a paid and/or volunteer worker) at an eligible not-for-profit organization.

Eligible not-for-profit organizations

Eligible not-for-profit organizations are entities registered with the Canada Revenue Agency. They must be registered as a charity and/or incorporated as a not-for-profit corporation or similar entity with Canada, Ontario or another Canadian province or territory.

The following organizations, which may fall within the above definition, are excluded for the purposes of this program:

  • Schools (public and private elementary, secondary, and postsecondary)
  • Hospitals (public and private)
  • Federal, provincial and municipal governments and their agencies
  • if you are employed by and/or do voluntary work that mainly or entirely involves administering the charitable activities of one of these excluded organizations (e.g., you raise funds or distribute raised funds for the charity or foundation of the organization) for at least 30 hours per week, you can still apply for this program. Other employees of these excluded organizations are not eligible for this program.

How to apply

Use the Application for One-Year OSAP Grace Period for Not-For-Profit Employees on the OSAP website or request one from the National Student Loans Service Centre (NSLSC).

Both you and an authorized representative of the not-for-profit organization you work at complete sections of the application. The organization’s authorized representative must:

  • Confirm that you meet the eligibility criteria.
  • Provide its Registered Charity Number or Not-For-Profit Corporation Number.

Deadline

Your application must be received by the NSLSC within six months of the date you left full-time postsecondary studies.

Checking your application status

The NSLSC will let you know within 30 days of receiving your application whether or not it was approved.

Contact the NSLSC with any questions on the status of your application.