Your OSAP Responsibilities

Your OSAP Responsibilities

Your OSAP loans are an important part of your financial life. While you’re a student we encourage you to learn financial literacy skills so you’re prepared when the time comes to repay your loan. Check out the many helpful resources on Mohawk’s Mo’ Money website.

Everything you need to know about your OSAP loan and/or grant can be found on the OSAP website. It’s the most comprehensive and up to date resource you need. While there, be sure to familiarize yourself with information about eligibility and status, the interest-free period, repayment, and more.

Upon receiving any OSAP loan aid, you assume the following responsibilities:

  • To read and follow all the terms and conditions in the Master Student Financial Assistance Agreement (MSFAA) form.
  • Agree to use this loan aid first to pay your tuition and fees to Mohawk College, then to cover other educational and living expenses related to your studies
  • To make appropriate repayment arrangements with your lender when you cease full-time studies.
  • To promptly notify Mohawk College Financial Assistance if you:
    • reduce your course load
    • change your program of study
    • fail to progress academically
    • withdraw from your studies
    • experience a change in marital status
    • experience a change in your personal or familial financial situation.

The Ontario and federal governments take these responsibilities very seriously, and so should you. If you fail to meet loan obligations the possible consequences include:

  • Reassessment and reduction of your OSAP entitlement
  • Refusal of future student loan assistance
  • Poor credit rating
  • Additional interest charges
  • Collection proceedings
  • Legal action
  • Loss of income tax refunds.

Loans vs grants

OSAP offers student loans with favourable interest terms, but depending on financial need, they also offer OSAP grants. Grants do not have to be repaid and can help relieve financial stress. (If you’re trying to avoid extra debt – you can still apply for an OSAP grant!).

Eligibility

Your eligibility is based on citizenship, where you live, family income, and more. Take time to understand how these requirements affect you.

Report a change to your status

If there are changes to your program, the number of courses you take, your income, or anything else that might affect your OSAP loan or grant amount, you must report the change to OSAP, not to Mohawk College.

Maintaining Academic progress 

In addition to the minimum academic requirements, students are expected to progress through the successive years of their program of study.

Frequent or multiple program switches, dropping from a full course load to a part-time course load, withdrawing from a program, repeating a program and/or taking multiple programs at the same level of study may be considered lack of progress and lack of academic direction on the part of a student which could affect your OSAP funding. 

The chart below lists the impacts of not meeting the government's minimum required academic progress while receiving OSAP:

FAILING TO MEET ACADEMIC PROGRESS STANDARDS FOR... MEANS YOU... REMEDY:
1 period of study Are placed on OSAP probation for 12 months (1 year) but remain eligible for OSAP funding. Succeed in all following academic periods to maintain OSAP eligibility.
2 periods of study Lose your OSAP eligibility for a minimum of 12 months (1 year). Maintain outstanding student loans in good standing with the lending institution during the 12-month period.
3 periods of study Lose your OSAP eligibility for a minimum of 36 months (3 years). Maintain outstanding student loans in good standing with the lending institution during the 36-month period.
4 periods of study Lose your OSAP eligibility for a minimum of 60 months (5 years). Maintain outstanding student loans in good standing with the lending institution during the 60-month period.
5 periods of study Lose OSAP eligibility. Must repay all outstanding student loans prior to obtaining new loans.

Stay interest-free

To avoid unnecessary interest, be sure you understand your student status and payment obligations. If your study plans change or you drop a course and lose your full-time student status, your eligibility for OSAP may change and require prompt or additional repayment. Visit the OSAP website to learn about retaining your interest-free status.

Repaying your OSAP loan

You must start paying back your OSAP loans six months after the end of your study period.

  • During this six-month period, the federal portion of the loan is interest-free.
  • The provincial portion starts accruing interest immediately at the end of the study period.

You can save interest payments if you are able to start your repayment right away. Review everything you need about loan repayment.

Defaulted OSAP loans

A loan in default can interfere with your eligibility for further financing and may result in penalties. If, for any reason, your student loan should fall into default, learn about your options.

Repayment assistance

Under some circumstances, you may be eligible for repayment assistance. (Based on family income, employment income, etc.) Read more on the National Student Loans Servicing Centre website.