Repaying Your OSAP / Student Loans

A step-by-step guide to understanding what you owe, when to start, and your repayment options

You’ve invested in your education — now it’s time to manage your student loans with confidence. This page walks you through when repayment begins, how to make payments, and what to do if repayment becomes a challenge.

1. What You Owe (What Must Be Repaid)
2. When Repayment Starts (Grace / Non-Repayment Period)
3. Making Payments & Managing Your Account
4. What to do if you can't make payments
5. Risks of Non-Payment / Default
6. Voluntary Payments (Extra / Overpayments)

1. What You Owe (What Must Be Repaid)

• Loans vs. grants/bursary overpayments
  You must repay:
  1. Funds you borrowed under OSAP (loans)
  2. Any grant or bursary overpayment (if you received more than you were eligible for)
  3. Grants or bursaries that are converted to a loan under certain conditions
• Integrated OSAP / Federal + Provincial portions
  Your OSAP funding may include a federal (Canada Student Loan) portion and a provincial (Ontario Student Loan) portion.

2. When Repayment Starts (Grace / Non-Repayment Period)

6-Month Grace Period:

• After you graduate, leave full-time studies, or drop to part-time, there is a six-month non-repayment (grace) period before loan payments begin.
• During this period:
  • Ontario (provincial) portion: interest is charged and added to your loan balance.
  • Federal portion: no new interest accrues (i.e. interest is waived) as of April 1, 2023.

Extending Your Grace Period:
In certain cases, you may be eligible to extend the six months by another six months. See the section below (4. What to do if you can't make payments) for more information. 

3. Making Payments & Managing Your Account

• Consolidation / Repayment Package
  Within your 6-month grace period, the National Student Loans Service Centre (NSLSC) will send you (or make available via your NSLSC account) a consolidation/repayment package. This includes:
  • The number of payments needed
  • The date of your first payment
  • The interest rates applied
  • How much your monthly payment will be
• Where to Pay
  All payments go to the NSLSC (National Student Loans Service Centre). You do not make payments directly to the Ontario government or to Mohawk College.
• How to Pay / Payment Options
  Through your NSLSC account, you can:
  • Set up pre-authorized payments (PAP)
  • Change your payment frequency (monthly, biweekly, weekly)
• Early / Extra Payments
  You may make additional payments at any time to pay off your loan sooner. These will generally be applied to interest first, then principal.
• Log in to your NSLSC account or contact National Student Loans for more information. 

4. What to do if you can't make payments

• Repayment Assistance Plan (RAP)
  If your income is low or you’re facing financial hardship, you may be eligible to reduce or suspend payments for six months at a time under the Repayment Assistance Plan.
  • You must re-apply every six months
  • If you have a severe permanent disability, there is a special benefit (RAP-D) which can provide deeper relief.
• Other Options / Adjustments
  • You may be able to customize your payment terms (change frequency or amount) via NSLSC.
  • Rehabilitation (if defaulted): If your loan is in default, you may bring it back into good standing via the Ontario Student Loan Rehabilitation Program.
• Contact National Student Loans or log in to your NSLSC account for more information. 

5. Risks of Non-Payment / Default

• If you fail to make payments, your loan may be placed “in default.”
• Consequences of default can include:
  • Ineligibility for further OSAP until default is cleared
  • Transfer to a collection agency
  • Reporting to credit bureaus (negatively affecting credit score)
  • Continued accumulation of interest on the unpaid balance
• If you have missed one or more of your repayments, please contact NSLSC (1-888-815-4514) for your options and more information about the impacts. 

• If you have reapplied for OSAP and have a loan restriction indicated on your OSAP account, please follow the steps indicated on your OSAP account online.  

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6. Voluntary Payments (Extra / Overpayments)

Even though your loan repayment schedule sets minimum monthly payments, you have the option to make voluntary payments (i.e. additional or early payments). Doing so can reduce your interest costs and shorten the life of your loan. Below is how voluntary payments work under OSAP / NSLSC, and what you should keep in mind.

What Is a Voluntary Payment?

• A voluntary payment is an extra payment you choose to make—above and beyond your required monthly payment.
• You can also make a voluntary repayment if you have a grant or bursary overpayment (i.e. you received more grant funding than you were eligible for) and wish to repay that amount voluntarily. (This is sometimes called “grant overaward repayment.”)
• Voluntary repayments may be applied either toward your loan principal or toward reducing overpayment balances (for grants), depending on how they are designated by you and processed by NSLSC. 

When / How to Make a Voluntary Payment

• You may make a voluntary payment at any time, whether you're already in repayment or even during your study period (if you have outstanding overpayments).
• For grant or bursary overpayments, contact NSLSC (1-888-815-4514) to make the voluntary repayment. If payment is made, you must notify NSLSC within 5 days to ensure it is applied correctly to provincial and/or federal overpayment accounts.
• For loan overpayments or extra loan payments, you may also make voluntary payments via NSLSC. If the extra payment is made during your study period, you may need to upload documentation (e.g. an NSLSC statement or receipt) via your OSAP account to ensure the repayment is properly reflected in your OSAP record.
• If you have an overpayment restriction on your OSAP account (i.e. you are blocked from future OSAP funding until an overpayment is repaid), voluntary payments can help remove that restriction. More information, including the required repayment amount, can be found on your OSAP account online.