Personal Finance

OSAP repayment grace period

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  • Oct 12th, 2018 1:06 pm
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[OP]
Member
Jan 1, 2012
274 posts
15 upvotes
Toronto

OSAP repayment grace period

Hi, I just want to verify and double check if there is an accumulated interest on my OSAP loan in applying for the repayment assistance for my loan? The OSAP rep told me that I can opt not to pay for 6 months and no interest will be charged to my loan.

However, I don't understand the meaning of this clauses stated in the OSAP site:

- no interest is charged on the Ontario portion of your student loan
- interest is charged on the federal government portion of your student loan.

Any ideas? thanks!
28 replies
Sr. Member
Jun 9, 2006
836 posts
84 upvotes
Thornhill
When I did it about 8 years ago, the 6 months grace period is 'if you pay within 6 months, you don't pay interest, but interest is accruing in the event that you don't pay it off within 6 months'.

Since you are applying for repayment assistance, once 6 months is up, you will be hit with the full interest amount for what you started with. Best to call them to confirm though.
Member
Nov 27, 2006
441 posts
91 upvotes
when I first applied like 10 years ago, the interest accrued during the six months and I went directly onto Interest Relief (former RAP program) I had a choice whether to pay the interest or roll it into the principle amount owing.
Deal Addict
Nov 11, 2004
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Havo wrote:
Jan 14th, 2013 9:39 am
From what I understand, they start charging you interest from the day you finish school. The 6 month grace period just offers you the option of not making any payments towards your account in the first 6 months but interest is still added.
What this person said. At the 5 month period when I found out I was accruing interest, I paid off the loan asap.

As for Interest Relief aka Repayment Assistance Plan (RAP Program), someone told me this will affect your future credit. Friend told me this when he was inquiring about it.
[OP]
Member
Jan 1, 2012
274 posts
15 upvotes
Toronto
Tilter wrote:
Jan 14th, 2013 10:17 am
What this person said. At the 5 month period when I found out I was accruing interest, I paid off the loan asap.

As for Interest Relief aka Repayment Assistance Plan (RAP Program), someone told me this will affect your future credit. Friend told me this when he was inquiring about it.
oh no! if there is an interest, i would have paid off my loan also! need to call osap again to verify... what is the interest percentage?
Deal Addict
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Sep 4, 2005
2797 posts
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Toronto
michibahn wrote:
Jan 14th, 2013 10:27 am
oh no! if there is an interest, i would have paid off my loan also! need to call osap again to verify... what is the interest percentage?
The interest % changes depending on when you got it. I had my loan and 5 months after I was done school I paid it all off to ensure I wasn't hit with any interest on it.
Deal Expert
Mar 25, 2005
21185 posts
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michibahn wrote:
Jan 14th, 2013 10:27 am
oh no! if there is an interest, i would have paid off my loan also! need to call osap again to verify... what is the interest percentage?
Did you not Google?

No interest accrues on the provincial portion; however the federal portion does. No payment is due until 6-months post-grad. Provincial rate is P+1%; federal is P+2.5%.
Deal Addict
Dec 9, 2006
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Kasakato wrote:
Jan 14th, 2013 4:33 pm
Did you not Google?

No interest accrues on the provincial portion; however the federal portion does. No payment is due until 6-months post-grad. Provincial rate is P+1%; federal is P+2.5%.
This is correct. Also, about two thirds of your loans are federal and accruing interest and about a third does not accrue any until 6 months after you finish. If you go back to school, then you don't pay interest but I believe even if you pay after say 3 months, you still pay the 3 months interest. I have never seen anything to the contrary. My loans (with the federal/provincial split) is being charged about 2.7% during the grace period and that will increase after. This is when looking at the total loan and both the 0% and standard interest rate. I believe this percentage would be the same for everyone currently.
Deal Fanatic
May 31, 2006
5248 posts
155 upvotes
Toronto
michibahn wrote:
Jan 14th, 2013 10:27 am
oh no! if there is an interest, i would have paid off my loan also! need to call osap again to verify... what is the interest percentage?
It depends on the option you picked. Fixed rate vs floating rate. If its fixed rate then it's basically as the name states. If it's floating, it varies. If you log into your NSLSC account, it shows you the % there
[OP]
Member
Jan 1, 2012
274 posts
15 upvotes
Toronto
xg3 wrote:
Jan 16th, 2013 1:23 pm
yes
so this means that there were no interest charges?
Member
User avatar
Feb 2, 2010
279 posts
65 upvotes
Vancouver
michibahn wrote:
Jan 16th, 2013 1:41 pm
so this means that there were no interest charges?
Yes, since you got Repayment Assistance which covers your interest charge over the time.

I have some questions if you don’t mind. How did you get the Repayment Assistance? What was your condition? And also How did you get a Government Grant worth of $7326 on 7-17-2012?
[OP]
Member
Jan 1, 2012
274 posts
15 upvotes
Toronto
AaroAari wrote:
Jan 16th, 2013 5:28 pm
Could that be OSOG?
yes OSOG it is. i think it's a standard grant for OSAP loans if i'm not mistaken. for the repayment assistance, i just called NSLSC and they were the one offered me to apply and see if gets approved. fortunately, i was approved 2x so i have been on RAP for a year. thinking of start paying this year but not sure if interest will kick in if i'll start my payments. the repayment assistance really helped a lot if the interest is not charged.

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