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🌟 2025 Update: Federal student loans (the Canada Student Loan portion of OSAP) are interest-free. Ontario's provincial OSAP loan charges interest at Prime + 1% after graduation's 6-month grace period.
What is OSAP?
OSAP (Ontario Student Assistance Program) is Ontario's student financial aid system. It combines a federal Canada Student Loan + federal grants with an Ontario provincial loan + Ontario grants into a single application. Most Ontario students apply once per year at osap.gov.on.ca.
OSAP Grants vs. Loans (2025)
| Aid Type | Family Income | Amount (2024–25) | Repay? |
|---|
| Ontario Student Grant (low-income) | Under ~$175,000 | Up to $7,480/yr | No — free money |
| Canada Student Grant (low-income) | Under ~$175,000 | Up to $4,200/yr | No — free money |
| Canada Student Grant (middle-income) | Under ~$175,000 | Up to $2,000/yr | No — free money |
| Canada Student Loan | Any eligible student | Up to $300/wk | Yes — 0% interest |
| Ontario Student Loan | Any eligible student | Varies by need | Yes — Prime +1% |
OSAP Income Thresholds (2025)
Who Qualifies for OSAP?
OSAP uses your family income (parents if under 22 and dependent, or your own income if independent) to calculate eligibility:
- Family income under ~$175,000: Eligible for grants and loans
- Family income under ~$50,000: Maximum grants — may cover full tuition at Ontario colleges and universities
- Family income $50K–$110K: Partial grants plus loans
- Family income over ~$175,000: Loan-only (no grants) or may not qualify
- Independent students assessed on their own income (if 22+, married, or have dependents)
How to Apply for OSAP — Step by Step
1
Create an account at osap.gov.on.ca using your Ontario Student Number (OSN) or create a new account
2
Complete your OSAP application — enter school name, program, start/end dates, income info (your own and parents' if dependent)
3
Consent to income verification — OSAP accesses your CRA tax data automatically with your consent
4
Submit school confirmation — your school confirms enrolment electronically
5
Set up direct deposit at NSLSC (nslsc.canada.ca) — add your bank account for direct deposit (KOHO accounts work)
6
Receive funding — OSAP is typically released in 2 instalments: start of each semester
OSAP Repayment & Repayment Assistance
When Does OSAP Repayment Start?
OSAP repayment begins 6 months after you leave school (graduate or withdraw). During the grace period, no payments are required. The federal portion is interest-free forever. The provincial Ontario loan accrues interest at Prime + 1% after the grace period.
Ontario Repayment Assistance Plan (ORAP)
If you can't afford payments, apply for ORAP through NSLSC:
- Payments reduced to 20% of gross income maximum
- No payments if income is below the Low-Income Measure (~$25,000 for a single person)
- After 10 years on ORAP, remaining balance may be forgiven
- Reapply every 6 months — apply online at nslsc.canada.ca
Frequently Asked Questions — OSAP 2025
How much OSAP can I get in 2025?
Most Ontario students receive between $5,000–$17,000/year in combined OSAP funding. Low-income students (family income under ~$50,000) may receive enough grants to cover full tuition at many Ontario colleges and universities. Use the OSAP estimator at osap.gov.on.ca to get a personalized estimate before applying.
Does OSAP cover rent and living expenses?
Yes — OSAP is designed to cover both tuition and living costs. Living allowances are built into OSAP calculations based on whether you live at home, in residence, or independently. Students living away from home receive higher OSAP amounts than those living with parents. The total includes both grants and loans.
Can I receive OSAP directly to KOHO?
Yes — OSAP direct deposits go to NSLSC, and you can set up a KOHO account as your direct deposit destination. KOHO provides a Canadian bank account number and transit/institution numbers for direct deposit setup. Use code 45ET55JSYA when signing up for KOHO to get a $100 bonus — excellent for supplementing your OSAP budget.
What happens to my OSAP if I fail a course or drop out?
OSAP requires you to maintain satisfactory academic progress (typically 60% of a full course load). If you drop below the required load or withdraw from school, OSAP funding stops and repayment begins 6 months later. Notify OSAP immediately if your enrolment changes. If you fail a year, you may still be eligible the following year depending on circumstances.
Is OSAP based on my parents' income if I'm 22 years old?
OSAP considers students "independent" at age 22, if they are married/common-law, have dependents, or have been out of high school for 4+ years. Independent students are assessed on their own income only. If you're under 22 and single with no dependents, OSAP uses your parents' income to assess eligibility. This can significantly affect grant amounts.
What's the difference between the federal and provincial OSAP loans?
The federal portion (Canada Student Loan) is serviced by NSLSC and currently charges 0% interest. The provincial portion (Ontario Student Loan) is also serviced by NSLSC but charges interest at Prime + 1% after the 6-month grace period. Both show up in one NSLSC account. The grant portions (both federal and Ontario) never need to be repaid.
Disclaimer: OSAP rules, income thresholds, and amounts change each academic year. Always verify current information at osap.gov.on.ca. This page is for informational purposes only and does not constitute financial or legal advice.