You can arrange to have your payments withdrawn automatically from your bank account. Your credit score influences the approval and terms of other credit, such as car loans and mortgages. In addition, interest continues to accrue on the unpaid loan amount. Some graduates choose to make only the minimum payment required on their OSAP loans, even if they can afford to pay it off. The non-refundable tax credit , competitive interest rates, and other financial goals such as saving for a down-payment or paying off higher-interest debt make this option attractive.
Other prefer to get it over with and prioritize paying off their OSAP loans. You need to start paying back your OSAP funding after 6 months from the end of your study period. In some cases, there could be ways around this eg. Before you start paying back OSAP, you need to either graduate from your program or leave your full-time studies entirely. You still have 6 months after graduating or leaving until you need to make your first payment, but know that interest accrues on your loan, even during this grace period see below for interest rate.
You can use the OSAP repayment calculator as a quick and easy tool to do so. Your monthly repayment amount is calculated using the interest rate at the time you start paying back your student loans. The OSAP loan is divided into two parts federal and provincial with two different interest rates:.
As of August , the prime rate is 2. Instead, your loan balance how much you have left to pay will change accordingly. Now that you have an estimation of your monthly payment, budget accordingly and set this amount aside with every paycheque.
Learning to automate your finances will pay dividends once your loan is paid off. Either sign in to your account using a sign-in partner your bank or your username and password. You can use it to apply for repayment assistance and request changes to your repayment terms eg. A great way to ensure that all your payments will be made on time is by using pre-authorized debit.
Having your pre-authorized debit set up means that each month, your payment will be withdrawn from your bank account automatically. On the other hand, you can also log into your account each time and make lump-sum payments with your banking information. Estimating your OSAP loan repayments You can use the Repayment Calculator available on the government OSAP website to estimate what your monthly loan repayments will be once your full-time studies end.
OSAP loan repayments and the grace period OSAP loan borrowers are not required to make loan payments for the first six months after leaving their full-time post-secondary studies. During the grace period interest will accumulate on your OSAP loans. Continuation of interest-free status To keep your previous student loans interest-free while you continue your studies you must inform the National Student Loans Service Centre NSLSC or any other previous lender that you are a still registered as a full-time student.
Applying online Average processing time is 1 - 3 weeks. Log in to your OSAP account. Under Interest-free status , click Apply for interest-free status. Follow the instructions in the application. Applying by submitting the paper form Average processing time is 3 - 6 weeks.
Complete Section 1 of the form.
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