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.
If your six-month grace period has not yet ended and you are the owner or joint owner of an eligible new business, 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 Loan and/or the Ontario portion of your Canada-Ontario Integrated Student Loan 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 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 a director or officer of the business with a controlling share.
Eligible new business means:
- a business that has been registered with the CRA within the current calendar year or within the two previous calendar years; or
- a business registered with the CRA in which you acquired a controlling interest within the current calendar year or within the two previous calendar years.
Use the Application for One-Year OSAP Grace Period for Entrepreneurs on the OSAP website 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.