OSAP impacts to withdrawing

How does withdrawing from a program or reducing my course load impact my OSAP?

Any time you have a change in status, it can result in a reassessment of your OSAP funding.

For example:

  • Reducing your course load
  • Withdrawing from your program/semester
  • Change in income or resources

It is your responsibility to contact the Financial Assistance Office when you have made changes in your course load, income or student status as it may impact your OSAP entitlement.

In some cases, you would be at risk of the following:

You will be placed on Academic Probation

This means that you dropped too many courses and fell below the minimum course load requirement while in receipt of OSAP assistance.  You may still receive OSAP funding during your probationary period however OSAP will closely monitor your academic progress for the next academic year.  

During your next year of studies if you drop too many courses, withdraw from the program or are unsuccessful in your studies you could be placed on a minimum one-year OSAP restriction. If you currently have an academic probation on your OSAP account you will be placed on a one-year restriction.

Academic Probation Summary

1st time: You will be placed on academic probation by the Ministry:

  • You may still apply and receive OSAP after being placed on probation
  • The probation remains in effect for all post-secondary institutions that administer OSAP


After the probationary period of one year is over, you will be required to upload a transcript updating the Ministry of your academic performance during probation upon reapplying for OSAP.

2nd time: You will be restricted from further OSAP funding for at least one year by either:

  • Sitting out for one consecutive twelve-month period or;
  • Successfully completing and self-funding your education during your period of restriction


The restriction will remain on your OSAP record and will be in effect at other educational institutions however this restriction can be cleared after the appropriate restriction period has passed.

In addition to the minimum academic requirements, students are expected to progress through the successive years of their program of study. For more information about maintaining academic progress and OSAP eligibility visit Your OSAP Responsibilities page.

You will be in an Overpayment position with OSAP

An OSAP overpayment occurs when you are in receipt of more OSAP funding (loans and/or grants) than you’re entitled to receive. This could be because of a change in your course load or because you did not accurately report all of your income during the study period (e.g. income from part-time jobs, etc.). You will be sent a notice from the Ministry of Colleges and Universities advising you of your overpayment. The notice may be sent by email or by letter to your mailing address.

This overpayment does not need to be repaid right away however in some cases there may be a grant to loan conversion that happens to your funding.  The grant-to-loan conversion means that all or some of your grant funding may be converted into a repayable loan.

Note: The Ministry can sometimes take 6 to 12 months to complete their review to determine a grant to loan conversion.

If you have withdrawn and would like to attend another program within the same academic year:

  • The amount of your loan overpayment may affect your OSAP eligibility for your new program – you may receive less than anticipated
  • It is recommended that you immediately pay back any OSAP you received for the semester by contacting National Student Loans at 1-888-815-4514 or their website at National Student Loans Service Centre.
  • Please contact the school you withdrew from for further direction


Definition and Causes:

Any time there is a change in a student's OSAP account it can result in a reassessment of their funding. For example:

  • reducing your course load
  • opting out of student activity fees
  • receiving more award funding
  • earning more at a part-time job than you originally reported on your application

Any of these situations could result in a reduction in your OSAP entitlement. If after these changes are made a student is no longer entitled to all the OSAP funding they received they will have an OSAP overpayment. In other words, an overpayment occurs when a student has received more OSAP than they were entitled to receive.

It is a student's responsibility to contact the Financial Assistance Office when they have made changes in their course load, income or student status that may impact their OSAP entitlement. Please review the Making Changes to Your OSAP Account section for further instructions.


The Ministry of Colleges & Universities will notify a student each time that their OSAP account is reassessed. It is then the student's responsibility to log onto their OSAP account to review their entitlement. In some cases, an overpayment will impact a student's eligibility for further financial assistance through OSAP. In these situations, the Ministry will send additional information to the student.

Repaying an Overpayment:

Step 1: Contact the NSLSC to pay

An overpayment can be repaid as a lump sum or in instalments.

To repay an overpayment you must contact the National Student Loan Service Centre (NSLSC) at 1-888-815-4514.

Step 2: Request a receipt

The Ministry Colleges & Universities require confirmation of repayment from the National Student Loans Service Centre. (A receipt from your financial institution is not sufficient.)

Once the overpayment has been repaid in full, you can (a) request a receipt from the NSLSC displaying your name, the amount(s) and date(s) of the payment(s); or (b) print a statement from your NSLSC account displaying your name, the date(s) and amount(s) of the payment(s) made.

The confirmation of repayment can be uploaded directly to your online OSAP application.

Your loan payment may begin

You may need to start paying back your OSAP loan six months after your study period ends (which would start as of the date you withdrew or dropped to part-time studies). You don't need to start paying back your OSAP loan if Financial Assistance confirms your enrolment for the next study period and we approve your application for one of the following programs:

  • OSAP for Full-Time Students
  • Continuation of Interest-Free Status

If you do not plan on attending school again until at least the next academic year:

  • You are not required to repay your first loan overpayment but will be responsible to make any regular payments back to your OSAP (if it is more than six months between semesters)
  • If you are restricted because of an overpayment, the status on your OSAP account online will indicate that your application is on hold and you will be directed to the “Application Restrictions” page that lists all reasons that you are restricted. In the case of an overpayment restriction, you will be provided with the amount that is to be repaid to have the restriction removed.

When your grant may become a loan

There are some situations where grants may be converted into a loan.

Even if you decline your loan and only take your grants, all or part of your OSAP grants may be converted into a loan if:

  • You withdraw from studies or stop taking the minimum course load within the first 30 days of starting school and don’t return as a full-time student within 5 months in the same academic year
  • As a result of an OSAP reassessment, you are not entitled to all or part of the grants that you received (e.g., dropped courses, unreported income)
  • The income provided by you and/or your family cannot be verified within one year from the start of your studies (this applies only to the Ontario Student Grant)

It is important to ensure that all the income information you provide is accurate and complete, and to respond promptly to warnings/additional information requests as required.

If your grant is converted to a loan, it’s:

  • Added to your loan balance
  • Included in the monthly loan payment you’ll make once you’ve left school

icon of pen and paperImportant things to note:

  • Interest will start accumulating after the Ministry is notified of your withdrawal
  • Repayment will be expected six months after your withdrawal
  • Some grants may be converted to loan if you have withdrawn very early in the semester

    Tuition & fee refunds

    The amount of tuition or fee refunds that the Mohawk returns to the National Student Loans Service Centre can reduce your overpayment.

    Overpayment restrictions

    You will be restricted from further full-time OSAP funding in the following cases:

    • you have received an overpayment of $2,000 or more in three academic years; and/or
    • you have received overpayments totalling $10,000 or more, regardless of the number of instances.

    Overpayments only restrict full-time OSAP applications; students are still eligible for part-time OSAP funding.

    Removing the funding restriction

    If there have been three instances of receiving $2,000 or more in overpayments but the total amount is less than $10,000, you must pay back $2,000 to remove the funding restriction.

    If your overpayments total $10,000 or more, you must pay that total down to $8,000 to remove the funding restriction. The exact amount to be repaid will be indicated on your OSAP account online. 


    If your OSAP is restricted due to an overpayment, you must repay the overpayment to receive future OSAP. You can make a one payment or a series of payments up to the overpayment amount.

    Once completed, upload your payment to your OSAP account and advise the Financial Assistance Office that you have made your payment in full.