Both the federal and Ontario government provide a six month grace period to all OSAP borrowers after leaving full-time studies. During this grace period, no payments on a student’s outstanding full-time loans are required. Ontario pays the interest on your Ontario Student Loans (including the Ontario portion of Canada-Ontario Integrated Student Loans) while interest still accumulates on your Canada Student Loans (including the Canada portion of Canada-Ontario Integrated Student Loans). After the grace period has ended, you are required to start making your monthly payments (of principal plus interest) on your outstanding full-time OSAP loans.
Ontario is making it easier for recent college and university graduates who choose to start their own business. The One-Year OSAP Grace Period for Entrepreneurs provides the owner or joint owner of an eligible new business located in Ontario with a six-month grace period extension before having to start making monthly payments on their full-time OSAP loans. During this six-month grace period extension, Ontario will also pay the monthly interest on ALL of your outstanding full-time OSAP loans.
(Note: Government student loans issued through other provinces or territories are not covered by this benefit.)
Who Can Get This Aid
You could be eligible for the One-Year OSAP Grace Period for Entrepreneurs if you meet all of the following requirements:
- You left full-time postsecondary studies within the last six months;
- You have existing full-time OSAP loans that are not currently in repayment status;
- You are the sole owner or joint owner of an eligible new business (as defined below) operating in Ontario;
- You are currently working in Ontario at least 30 hours per week at your eligible new business.
Sole owner or joint owner can include being a director or officer of the business with a controlling share.
What is an Eligible New Business?
For purposes of the One-Year OSAP Grace Period for Entrepreneurs, your new business will be considered eligible if in the year of your application or within the two calendar years immediately before the date of your application:
- your business was first registered with the Canada Revenue Agency (CRA), OR
- you became the owner or joint owner of your business AND it is registered with CRA.
How to Apply
Print the Application for One-Year OSAP Grace Period for Entrepreneurs from this website. You can also contact the National Student Loans Service Centre (NSLSC) at 1-877-283-1689 to request a copy of the application.
Send your completed application to:
National Student Loans Service Centre
P.O. Box 4030
In order to be considered, your completed application must be received by the NSLSC within the six month period that you left full-time post-secondary studies.
How to Check the Status of Your Application
The NSLSC will inform you of the outcome of your application within 30 days of its receipt.
If you have any questions regarding the application process or the status of your application, contact the NSLSC at 1-877-283-1689.