One-Year OSAP Grace Period for Entrepreneurs
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 on a student’s outstanding full-time loans are required. 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 is making it easier for recent college and university graduates who choose to start their own business. The One-Year OSAP Grace Period for Entrepreneurs provides the owner or joint owner of an eligible new business located in Ontario with a six-month grace period extension before having to start making monthly payments on their full-time OSAP loans. During this six-month grace period extension, Ontario will also pay the monthly interest on ALL of your outstanding full-time OSAP loans.
(Note: Government student loans issued through other provinces or territories are not covered by this benefit.)