O.S.A.P.

Ontario Student Assistance Program (OSAP)Pronounced "Oh-Sap"
From "OSAP 101"

Here is the information about repayment:

WHEN DO I HAVE TO BEGIN REPAYING MY STUDENT LOANS?
-In school you don't pay.
-You pay six months after finishing college or university.
-The National Student Loans Service Centre telephones you before the first bill comes

WHAT IS THE INTEREST RATE?
OSAP has two sources of money: Provincial and Federal

-The interest rate for the provincial loan is the prime rate of interest plus 1%.
-The interest rate the federal loan is prime plus 2.5%.
-If you want a fixed interest rate, you can lock in your interest rate on your federal loan at the prime interest rate at the time you begin repayment plus 5%.

HOW MUCH WILL I BE PAYING BACK AND FOR HOW LONG?
The National Student Loans Service Centre will call you to let you know your monthly loan payment and repayment period.
Usually the repayment period is for 9 ½ years and can be extended for up to 15 years.
You can also repay your loan more quickly if you choose.

WHAT IF I HAVE TROUBLE MAKING PAYMENTS?
A variety of assistance programs may be available to you if you have trouble repaying your student loans.

Financial Counseling
Many educational and financial institutions and non-profit credit counseling agencies offer budgeting and credit advice.

Revision Of Terms
If you are unable to make payments on your outstanding student loan, you may ask the National Student Loans Service Centre to revise the terms of the loan and extend the repayment period to up to 15 years. This lowers your monthly payments.

Interest Relief
Is available if you are experiencing difficulty in meeting the terms of your loan repayment due to low income or unemployment.
While receiving interest relief, you are not required to make any principal or interest payments on your loans and the government pays the interest on your behalf.
You may be eligible for up to 30 months of Interest Relief and an additional 24 months of extended interest relief if additional help is required within five years of completion of studies.

Debt Reduction in Repayment
Debt Reduction in Repayment assists borrowers who have been out of school for at least five years and who have exhausted interest relief but continue to have difficulty making loan payments.

A DRR reduction is applied against your outstanding student loan debt (interest and principal) reducing your monthly loan payments.
Payments are not paid directly to you. Payments are sent to the National Student Loan Service Centre.


WHO DO I CONTACT IF I NEED HELP?
If you are having trouble repaying your student loans, you can contact:
National Student Loans Service Centre
PO Box 4030
Mississauga, ON L5A 4M4
1-888-815-4514 (within North America)
1-800-225-2501 plus appropriate country code (outside North America)
Information and Help on the web
http://osap.gov.on.ca
http://canlearn.ca