University of Guelph-Humber

Interest-Free Status for Full-time Loans

Students do not have to make payments on OSAP, and out of province government student loans, while they are in school full time. Additionally, government loans are interest-free while a student attends post-secondary full time. To qualify for payment-free and interest-free status on full-time loans:

• Students must be enrolled in at least 60% of a full course load (1.5 credits) each semester
• Students with a permanent disability must be enrolled in at least 40% of a full course load (1.0 credit) each semester

How does OSAP know I am in school full time?

• If you are receiving OSAP (or out-of-province) funding, the Government is updated about your full-time status when your funding is released.

What if I am not taking OSAP for a semester?

• You may fill out a Continuation of Interest Free Status form to alert OSAP that you are in school full time
• The form is available on the OSAP web site
• Please bring the completed form to the Student Financial Services office, GH112
• Out-of-province students should consult their home province's government aid web site for specific information, and may visit the Financial Aid office for a Schedule 2, interest-free form (please bring your government-issued photo identification)
• You must submit your Continuation of Interest-Free Status form before the end of your current semester
• The Financial Aid office will electronically update your status with OSAP, but cannot submit the update if your study period has ended

When will I go into repayment after my studies have ended?

• There is a six-month grace period after your last full-time study session. You will begin your repayments after the six-month period expires
• During the grace period interest accumulates on the federal portion of your loan, but not on the provincial portion
• You may start your repayments early, and save interest charges; contact the NSLSC (see contact information in next bullet)
• If you cannot afford to start making payments, please contact the NSLSC at 1-888-815-4514 or follow the Repayment Assistant Program links on the Government of Canada’s or OSAP web sites

Interest Free Status for Part Time Loans

• You are not required to make loan payments while you are in school
• Please note that interest will accumulate on your part-time loan while you are in school

How to maintain interest-only status & avoid repayment while in school:

• If you are taking more part-time loan funding, then the Government is signaled that you are in school when your loan is processed and no further action is required by you
• If you are not taking any loans, or are taking full-time loans, and have previous part-time loans, it is important to keep your part-time loans in payment-free status
• To keep your part-time loans payment free, please visit the Student Financial Services office and ask for a Canada Student Loans Program Confirmation of Enrolment (Schedule 2)
• The Schedule 2 can be completed on-line; please visit the government of Canada’s web site