When receiving student loans through the Ontario Student Assistance Program (OSAP), there are two important benefits:
- You are not required to make loan payments as long as you are a full-time student.
- Your loans do not accrue interest as long as you are a full-time student.
If you are continuing your studies but are not receiving OSAP aid for your current study period, you can still receive these benefits by applying to the Continuation of Interest-Free Status program.
Continuation of Interest-Free Status
Interest-Free status means that you do not have to start repaying your loans while studying full-time. In addition, the Government of Canada and/or the Province of Ontario will pay the interest on those loans on your behalf.
You are eligible for Continuation of Interest-Free Status if you:
- have received full-time student loans through OSAP prior to your current academic year
- have not defaulted on any previous government student loans, and your loans are in good standing
- are studying at Carleton full-time in an OSAP-approved program, and
- submit the required form by the deadline date
How and When to Apply
You must submit the application form to the Awards Office during your current study period and no later than 6 months after your last study period end date to be considered for the full benefit.
Example: Your school year ended on April 24 and you are returning on September 5. You can submit your application for interest-free status after September 5, but no later than October 24.
For information on what happens to your student loans when you finish your studies, visit our Repaying Your Loan page.