Full-time OSAP loan borrowers who have left full-time postsecondary studies within the last six months who are working at an eligible not-for-profit organization in Ontario.
Both the federal and Ontario government provide a six month grace period to all OSAP borrowers after leaving full-time studies. During this grace period, no payments are required on your outstanding full-time student loans. Ontario pays the interest on your Ontario Student Loans (including the Ontario portion of Canada-Ontario Integrated Student Loans) while interest still accumulates on your Canada Student Loans (including the Canada portion of Canada-Ontario Integrated Student Loans). After the grace period has ended, you are required to start making your monthly payments (of principal plus interest) on your outstanding full-time OSAP loans.
Ontario has made it easier for recent college and university graduates who choose to work for eligible not-for-profit organizations. The One-Year OSAP Grace Period for Not-for-Profit Employees (formerly known as the Six-Month Grace Period Extension) provides borrowers who work for the not-for-profit sector with an additional six months before having to start making monthly payments on their full-time OSAP loans. During this six-month extension to the grace period, Ontario will pay the monthly interest on ALL of your outstanding full-time OSAP loans.
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