To help students assess financial risk and learn about prior student loan borrower outcomes, the Ministry of Colleges and Universities collects and publishes the following indicators by institution and program for Canada-Ontario Integrated Student Loan (COISL) recipients:

• OSAP default rates
• OSAP Repayment Assistance Plan (RAP) usage rates
• combined OSAP RAP usage and default rates

On this page you’ll find:

• An explanation on how the various rates are calculated
• Complete details on the all the 2021 Ontario combined RAP usage and default rates
• Initiatives taken to reduce the number of OSAP defaults.

The 2021 OSAP loan repayment measures reflect the repayment status of students who:

• were issued COISLs in the 2018-19 academic year, and
• completed or left their studies by 2019-20.

The default status of these loans was assessed as of July 2021, about two years after the 2018-19 academic year.

Institutional default rates are calculated using the last institution and program the student attended in 2018-19 while receiving a COISL.

The overall 2021 rates for Ontario postsecondary institutions are as follows:

• OSAP default rate: 3.7%
• RAP usage rates: 23.0%
• combined RAP usage and default rates: 26.6%

2021 OSAP default rates

An OSAP loan has specific repayment terms and conditions. If the borrower does not follow these provisions (e.g., they miss multiple payments), their loan will go into default.

When the loan goes into default, the National Student Loans Service Centre (NSLSC) submits a claim to the Province of Ontario and/or Government of Canada.

Submitted default claims are paid by the provincial and federal government. The loan is then turned over to a collection agency.

The overall 2021 default rate for Ontario postsecondary institutions is 3.7%.

The 2021 default rates based on institution type are as follows:

• publicly-assisted universities: 1.8%
• publicly-assisted colleges: 5.6%
• private career colleges: 4.3%
• other private and publicly-funded institutions: 2.1%.

Default rates are calculated based on the number of defaulted loans versus the total number of loans issued for students at the institution.

Learn more: 2021 COISL Default Rates by Student Characteristics for Ontario

To see the OSAP default rate information prior to 2021, select from the links, below.

• 2020 OSAP default rates
• 2019 OSAP default rates
• 2018 OSAP default rates
• 2017 OSAP default rates
• 2016 OSAP default rates
• 2015 OSAP default rates
• 2014 OSAP default rates
• 2013 OSAP default rates
• 2012 OSAP default rates

2021 OSAP Repayment Assistance Plan usage rates

The Repayment Assistance Plan (RAP) provides help to borrowers having difficulty repaying their government student loans. If their RAP application is approved, either no payment is required, or the borrower qualifies for a reduced payment for six months.

The borrower’s family income (borrower, and spouse if applicable), family size and amount of student loan debt are used to determine eligibility.

One term of RAP is for six months. The borrower can re-apply for RAP at the end of the six-month term.

Read more: Repayment Assistance Plan (RAP)

The overall 2021 RAP usage rate for borrowers who received loans in 2018-19 and attended Ontario postsecondary institutions is 23.0%.

The 2021 RAP usage rates based on institution type are as follows:

• publicly-assisted universities: 21.4%
• publicly-assisted colleges: 24.1%
• private career colleges: 25.2%
• other private and publicly-funded institutions: 28.1%

RAP usage rates are calculated based on the number of borrowers who used RAP for one or more terms versus the total number of loan recipients.

Learn more: OSAP Repayment Assistance Plan usage rates (2013-2021)

2021 OSAP combined RAP usage and default rates

The overall 2021 combined RAP usage and default rate for Ontario postsecondary institutions is 26.6%.

The 2021 combined RAP usage and default rates based on institution type are as follows:

• publicly-assisted universities: 23.0%
• publicly-assisted colleges: 29.5%
• private career colleges: 29.5%
• other private and publicly-funded institutions: 30.2%

The combined RAP usage and default rates are calculated based on the number of borrowers who were in default and/or used RAP for one or more terms versus the total number of loan recipients.

Go to Details: 2021 Ontario combined RAP usage and default rates, below, for complete details on these rates.

To help students obtain a fuller picture of financial risk, the 2021 reports include default rates, RAP usage rates and combined rates.

A high RAP usage rate indicates that a large proportion of borrowers had low family income for one or more six-month period after leaving their studies.

An institution or program with a low default rate may have a high RAP usage rate.

Prospective students are encouraged to also review the graduate employment outcomes and graduation rates for the programs and institutions they are thinking about attending.

Select from the links below for complete details on the 2021 Ontario combined RAP usage and OSAP default rates.

Rates by Sector

• Summary of rates for all sectors
• Ontario universities
• Ontario colleges of applied arts and technology
• Ontario private career colleges in Ontario
• Other private and publicly-funded institutions in Ontario

Rates by Program

• Ontario universities
• Ontario colleges of applied arts and technology Ontario
• Private career colleges in Ontario
• Other private and publicly-funded institutions in Ontario

Open Government Licence - Ontario

Initiatives to reduce loan defaults

Postsecondary institutions have an important role to play in reducing loan defaults. Some measures schools have implemented include:

• improving program quality and relevance
• ensuring adequate testing and admissions practices
• informing students of loan repayment and repayment assistance supports
• providing support to students to complete their studies
• assisting with job searches

In addition, OSAP approved private institutions in Ontario must achieve:

• Both an overall graduation rate and an overall graduate employment rate of at least 80% of the overall average rate for Ontario Public Colleges in at least one of every three years.
• An overall default rate that is at or below the default rate threshold in at least one of every four years. The first year of default rates included in this standard are the 2016 default rates of 2013-14 borrowers.Sharing the cost of loan defaults

A private institution is responsible for sharing the costs of loan default if their default rate is above the default rate is above the default rate threshold.

Any institution with a 2021 default rate above the 20% threshold is required to post a Promissory Note for loans issued in 2022-23. The 2021 default rate pertains to loans issued in the 2018-19 OSAP academic year.

Any institution that posted a Promissory Note for loans issued in 2018-19 and has a 2021 loan default rate above the 20% threshold is in a payment position. The institution is responsible for the Ontario portion of the loan default costs above the threshold.

To help students make an informed decision about their studies, the following information on an institution’s programs must be posted on their website:

• default rates
• Repayment Assistance Plan usage rates
• graduation rates
• graduate employment rates

Learn more: Graduation rates and graduate employment rates

Credit screening

Students aged 22 and older who have loans that have been in arrears for 90 days or more on three or more personal loans or credit accounts in the past three years, each with a value of $1,000 or more, are ineligible for student loans.

Income verification

The ministry verifies income information that students, and their parent(s) or spouse provides (if applicable) to OSAP with Canada Revenue Agency.

Closing the bankruptcy loophole

Federal legislation exempts federal and provincial student loans from being included in bankruptcy proceedings for a seven-year period following students’ completion of their studies.

Collections

The province recovers monies owed on student loans through contracted private collection agencies and set-offs against income tax refunds.