Interest-Free Status

If you have previously received OSAP funding, it is important to remember that if you are registered as a full-time postsecondary school student, interest does not have to be accruing on your loan(s), nor should you enter repayment. To be granted this opportunity you must take the initiative!

Interest-Free Status allows you to postpone repaying your loans while you are registered as a full-time postsecondary school student. The Government of Canada and/or the Province of Ontario will pay the interest on those loans on your behalf. To get it, you must notify the National Student Loan Service Centre (NSLSC) of your continued full-time enrollment in post-secondary studies.

Obtaining Interest-Free Status

In order to have your loans placed into interest-free status, the National Student Loans Service Centre (NSLSC) and/or bank (for loans before 2001) need to know that you are enrolled and in school full time. If you have applied for OSAP and your application has processed, an automatic Confirmation of Enrolment process will take care of this for you. In some cases, a Continuation of Interest-Free Status/Confirmation of Enrolment (CIFS) application will need to be submitted.

If your OSAP application has processed

Carleton will use an electronic process to confirm your enrolment to the ministry who will then inform the NSLSC.

If your OSAP application is on hold

If your OSAP application is on hold (e.g., missing documentation), be aware that Carleton cannot automatically confirm your enrolment to the Ministry until it is fully processed. In this case, your previous loans may go into repayment and you will have to start repaying them even if you are in school full time. To avoid that, submit all necessary documentation and address all outstanding items on your OSAP application OR complete a Continuation of Interest-Free Status/Confirmation of Enrolment (CIFS) application (see below).

If you have not applied for OSAP

If you are not applying for OSAP for the upcoming year, but want your prior loans to remain in interest-free status, you must complete a Continuation of Interest-Free Status/Confirmation of Enrolment (CIFS) application (see below).

Applying for CIFS

Once classes begin for your new study period, log into your account at ontario.ca/osap and complete and submit a Continuation of Interest-Free Status application. Carleton will review your application and confirm your enrolment to the Ministry. If the information is complete and valid, the ministry will inform the NSLSC.

CIFS Deadline

It is critical that you submit the CIFS application to your school in enough time for it to be approved and processed within 6 months from the end of your last term. In the case of students who left school in April and are starting a new term in September, the CIFS application should be submitted no later than October 15. If you delay, you may not get full interest-free status and you may be required to pay some interest. A CIFS application is not valid if submitted after the end of your current study period. The date of the CIFS application cannot be made retroactive.

Remember that you must complete a Continuation of Interest-Free Status application, and submit it before the end of your 6 month grace period to avoid accruing irreversible interest on your previous government student loan. Carleton University’s Awards & Financial Aid Office cannot automatically confirm your enrollment with the National Student Loan Service Centre.