OSAP is Ontario’s student aid program: one application covers federal and Ontario grants and loans for college and university. This guide covers how OSAP assesses you, the grant and loan mix after the August 2026 changes, how to apply, and how the loans are repaid. For a dollar estimate, the OSAP calculator and the official OSAP Aid Estimator give a figure, and the student loans hub covers the other provinces.
What is OSAP?
| Feature | Details |
|---|---|
| Full name | Ontario Student Assistance Program |
| Covers | Federal (Canada Student Loans and Grants) and Ontario aid in one application |
| Where to apply | The OSAP website (ontario.ca/osap) |
| Loans administered and repaid through | National Student Loans Service Centre (NSLSC) |
| Who can apply | Ontario residents of any age who are Canadian citizens, permanent residents or protected persons |
OSAP can pay for tuition, books and equipment, school fees, living expenses (full-time students only) and child care. Money from a Registered Education Savings Plan (RESP) does not affect how much OSAP you can get.
Grants and loans
| Type | Repayable? | How much |
|---|---|---|
| Ontario grants | No | At most 25% of your provincial OSAP funding for programs starting on or after August 1, 2026; none for career college students |
| Canada Student Grant (full-time) | No | Up to $4,200 for 2026-27 (up to $525 per month of study) |
| Ontario Student Loan | Yes | The rest of your provincial funding |
| Canada Student Loan | Yes | The rest of your federal funding |
The August 2026 change: the Ontario government announced on February 12, 2026 that more provincial OSAP funding would be delivered as loans. For programs starting on or after August 1, 2026, the grant share of provincial funding is capped at 25%, down from a maximum of 85%, and students at career colleges receive all provincial funding as loans. The federal Canada Student Grant is not part of the cap. (Sources: ontario.ca, Learn about OSAP; The Globe and Mail.)
Other federal grants (part-time students, students with disabilities or dependants) are covered in the Canada Student Grant guide; the part-time grant is up to $2,520 for 2026-27. OSAP considers you for every grant automatically.
How OSAP calculates your aid
For full-time students, OSAP uses a needs formula:
| Part of the formula | What it includes |
|---|---|
| Allowable costs | Tuition and compulsory fees, books and supplies, equipment, computer, living expenses, child care, transportation |
| Expected contribution | Student income and your parents’ or spouse’s income, depending on your status |
| Financial need | Allowable costs minus expected contribution |
What changes the result: your family’s income, your school’s costs, whether you live away from home, dependants, a disability, the length of your study period, and full-time or part-time status.
Dependent or independent student
Parents’ income counts only for dependent students. As a single full-time applicant you are independent if at least one of these applies:
- you have been out of high school for 6 or more years at the start of your study period (for the Ontario calculation; 4 or more years for the federal calculation)
- you have worked full-time for at least 24 months in a row
- both your parents are deceased, or you are or were a youth in extended society care
Married or common-law students and sole-support parents are assessed in their own categories. Where a parent can’t be reached or the relationship has broken down, you can ask for the application to be processed without parental information. (Source: ontario.ca, OSAP definitions.)
How to apply
| Step | Details |
|---|---|
| 1 | Register for an OSAP account on the OSAP website (you need your SIN) |
| 2 | Complete the application: school and program, your tax information, and your parents’ or spouse’s if they apply |
| 3 | Get an estimate after submitting |
| 4 | Complete the Master Student Financial Assistance Agreement (MSFAA) with the NSLSC, once per lifetime for full-time or part-time studies |
| 5 | Upload signature and declaration pages or other documents if asked |
| 6 | Wait for verification (usually 4 to 6 weeks) |
Deadlines: full-time students, and part-time students with study periods of 21 weeks or more, apply no later than 60 days before the end of the study period. Required documents must reach the financial aid office no later than 40 days before the end of the study period. Returning students fill out a new application every year. Applying early means the money arrives on time. (Source: ontario.ca, How to apply for OSAP.)
When the money arrives
Funding usually comes in two installments: the first at the start of the study period (usually September) and the rest halfway through (usually January). Your school must confirm enrolment first, and the NSLSC deposits the money to your bank account and, where applicable, to your school.
Full-time vs part-time OSAP
| Feature | Full-time | Part-time |
|---|---|---|
| Course load | 60% or more of a full load (40% with a permanent or prolonged disability) | 20% to 59% |
| Living expenses covered | Yes | No |
| Academic progress | Pass at least 60% of a full course load each term | Pass all funded courses |
| Application | OSAP website | OSAP website |
Keeping your eligibility
Full-time students must pass at least 60% of a full course load each term and keep progressing through the program. A first failure means academic probation; later failures bring funding restrictions of one, three and five years. Full-time OSAP is available for the program’s normal length plus one extra study period, and there is a lifetime limit of 340 weeks of funding for most students. (Source: ontario.ca, How to maintain eligibility for OSAP.)
If your OSAP seems wrong
Your school’s financial aid office can request a funding review, for example after unexpected financial difficulties, when you can’t make the expected contribution, in unusual parental circumstances, or after a bankruptcy. The office explains which documents and forms are needed.
OSAP repayment
Grace period and interest
Repayment starts after a 6-month grace period after you finish school or drop below full-time. During the grace period:
- no payments are required
- the federal portion charges no interest (it has been interest-free since April 1, 2023)
- the Ontario portion charges interest at prime plus 1% (currently 5.45%)
(Source: ontario.ca, Pay back OSAP.)
Monthly payments
Payments are based on a 9.5-year schedule (114 months), and you can extend it up to 14.5 years to lower the payment.
The payment depends on how the balance splits between the interest-free federal portion and the Ontario portion. The table shows the two ends of the range on the standard schedule, at the current Ontario rate of 5.45%; a real OSAP balance falls between them.
| Total loan | If the whole balance were interest-free | If the whole balance were at the Ontario rate |
|---|---|---|
| $15,000 | $132 | $169 |
| $25,000 | $219 | $281 |
| $40,000 | $351 | $450 |
| $60,000 | $526 | $675 |
The Ontario rate floats with prime, so the Ontario part of the payment changes when prime does. How to pay off student loans shows what extra payments do, and the student loan repayment calculator runs your own numbers.
If you can’t make the payments
The federal Repayment Assistance Plan and Ontario’s own plan for the Ontario portion lower or pause payments based on family income, six months at a time, from one application; that guide has the thresholds and how the two plans differ. Missed payments lead to default and collection by the Canada Revenue Agency, covered in what happens if you can’t pay your student loan. Your balance, payments and RAP application are managed in your NSLSC account.
OSAP and taxes
Interest you pay on the Ontario portion earns the federal and Ontario student loan interest credits on line 31900, explained with an example in how to pay off student loans. Tuition earns the federal tuition credit from your school’s T2202 slip, but Ontario ended its own tuition credit for tuition paid after September 4, 2017; the rules and transfers are in the tuition tax credit guide.
Loan forgiveness
The Ontario portion of OSAP has no general forgiveness program, but the federal portion can be partly forgiven for family doctors, nurses, teachers and other listed occupations working in rural communities, and Ontario runs health-care programs such as the Resident Loan Interest Relief Program and the Ontario Learn and Stay Grant. All are compared in student loan forgiveness in Canada.
Ways to borrow less
| Approach | Why it helps |
|---|---|
| Check whether you qualify as independent | Parents’ income is not counted |
| Report actual living costs and dependants | Allowable costs set the need |
| Apply before the deadline | Funding arrives on time |
| Use RESP money | It doesn’t reduce your OSAP |
| Decline part of the loan | You can accept the grants and decline the loan after approval |
Common OSAP mistakes
| Mistake | Consequence |
|---|---|
| Not applying | Missing grants you qualify for |
| Applying late | Funding arrives late |
| Not reapplying each year | OSAP is not renewed automatically |
| Borrowing more than needed | Larger payments later |
| Dropping below the required course load | Probation or restrictions on future funding |
| Not using RAP when payments are hard | Risk of default |
| Missing payments | Damages your credit score |
Sources
The figures and rules on this page come from these sources, last checked against them between September 28, 2026 and October 2, 2026. How we check facts.
- Gouvernement du Québec: Repaying student loan
- Government of Alberta: Repaying your student loan
- Government of Canada: Full time
- Government of Canada: Sk terms and conditions
- Government of Manitoba: What happens to my loans when i am in school
- Government of New Brunswick: Handbook e
- Government of Newfoundland and Labrador: Repayment process
- Government of Nova Scotia: Zero Interest
- Government of Ontario: Pay back OSAP
- Legislative Assembly of Prince Edward Island: Dms
- studentaidbc.ca: Eliminating interest bc student loans