One-Year OSAP Grace Period for Entrepreneurs


Have you recently left full-time postsecondary studies and started a new business in Ontario? If yes, apply for the One-Year OSAP Grace Period for Entrepreneurs 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.

As an owner or joint owner of an eligible new business in Ontario, you can get an extra six months before you must start repaying your full-time OSAP loans.

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’re the sole owner or joint owner of an eligible new business operating in Ontario.
  • You are currently working in Ontario at least 30 hours per week for your eligible new business.

Sole owner or joint owner includes directors or officers of the business with a controlling share.

Eligible new businesses

Your business is new if, within the year you submit your One-Year Grace Period for Entrepreneurs application or within the two previous calendar years:

  • your business was first registered with the Canada Revenue Agency (CRA) or
  • you became the owner or joint owner of your business and it’s registered with the CRA.

How to apply

Use the Application for One-Year OSAP Grace Period for Entrepreneurs on the OSAP website (ontario.ca/osap) or request one from the National Student Loans Service Centre (NSLSC).


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.