Pay back OSAP

How to repay your student debt.

What you need to repay

You need to repay your student debt, including any:

  • loans
  • overpayments



Cap on debt for full-time students

No matter how much you borrow, Ontario limits the amount you need to repay after you graduate or are no longer a student. 

$7,400: the most you will need to pay back for a 2-term academic year.

$11,100: the most you will need to pay back for a 3-term academic year.

You are automatically considered for this debt relief through the Ontario Student Opportunity Grant – one of the grants that is part of OSAP. But you need to:

  • complete your academic year
  • file your income tax return
  • make sure that anyone else who reported income on your OSAP application also files their income tax return

Reasons why your cap on debt could be more than $7,400

Learn more: Ontario Student Opportunity Grant

6 months grace period

For the first 6 months after you graduate, finish your studies, or stop being a full-time college or university student:

  • you don’t need to make any loan payments
  • no interest is charged on the Ontario portion of your student loan
  • interest is charged on the Canada portion of your student loan

Estimate your monthly payments

To see approximately how much you will need to repay each month, use our online calculator. It’s a great way to learn how your debt could affect your daily living costs once you’ve left school.

Online tool: OSAP Repayment Calculator

How to repay

Within 6 months of leaving school, you will get a package in the mail from the National Student Loans Service Centre that tells you:

  • how much you owe
  • the expected monthly payment
  • the interest rate

When you start to repay

You start to repay your loan at the end of the 7th month, after you leave school.

Financial relief/help repaying

Repayment Assistance Plan

If you’re having trouble making your required monthly payments, you could be eligible to lower your payments so they’re more affordable.

How it works

Your new payment is calculated based on your:

  • family income
  • family size
  • outstanding debt

At the same time you’re paying your loan, the provincial and federal governments are also making payments until your total debt is paid off.

Your payments grow gradually as your income grows – but never more than 20% of your family income.

Very low income-earners make no payments until income grows to a certain level.

Loan repayment period

Loans in good standing will be paid off over a maximum of 15 years through a combination of your payments and the provincial/federal government payments.

Loans to borrowers with a permanent disability will be paid off over a maximum of 10 years because the government payments help pay down your principal right away.

How to apply

You can:

  • fill out an application online through your National Student Loans Service Centre account
  • download an application from the CanLearn website

One application will give you access to both federal government and Ontario government relief programs.

You need to re-apply for the plan every 6 months.

Learn more: Repayment Assistance Plan (RAP)

Revise your repayment terms

You can ask the National Student Loans Service Centre to revise the repayment terms of your loan (the length of time it will take to pay back the loan) by extending your repayment period from 9.5 years to 14.5 years. This will lower your monthly payments.

Customize your repayment terms

Students with a severe permanent disability

If you have a severe permanent disability and can’t work or go to school, and you’re having trouble repaying a student loan, you could be eligible to have your loans forgiven.

How to apply

You need to request an application through the National Student Loans Service Centre. With 1 application you can apply for loan forgiveness from both the federal and Ontario governments.

Severe Permanent Disability Benefit

If you do not repay your loans

If you don't make your loan payments, you will be in default.

In default:

  • your debt will be turned over to a collection agency
  • you will be reported to a credit bureau
  • you could be ineligible for further OSAP until the default is cleared
  • it can affect your ability to get a car loan, mortgage or credit card
  • your income tax refund and HST rebate can be withheld
  • interest will continue to build up on the unpaid balance of your loan

Your OSAP debt will only be erased when you have paid it off in full.

I’ve declared bankruptcy. What happens to my OSAP debt?

Clear a default

You will need to contact the appropriate organization to clear a default. 


Who to contact

Contact information

Canada-Ontario Integrated Student Loans National Student Loans Service Centre In North America: 1-888-815-4514
TTY: 1-888-815-4556
Canada Student Loans The private collection agency listed on your notice To find out who holds your account, call 1-888-819-2516 or 1-819-994-1218 (TDD/TY)
Ontario Student Loans The private collection agency listed on your notice To find out who holds your account, call 416-326-0500


Updated: May 1, 2015