The Ontario Student Assistance Program (OSAP) provides financial support to eligible Ontario students in the form of loans (which must be repaid) and grants (which don’t). Understanding the difference — and how to maximize grants — is worth the 30 minutes it takes to learn.
The Basics
OSAP is administered by the Ontario government and provides a combined federal-provincial financial aid package. Your total aid is split between:
- Grants: Money you don’t repay. The Ontario Student Grant and Canada Student Grant make up the majority of aid for lower-income students.
- Loans: Money you borrow interest-free while in school and repay after graduation. Combined federal and provincial loans.
The split between grants and loans depends primarily on your family income (and your own income, if independent).
Who Gets Grants vs. Loans
As of recent OSAP reforms:
- Students from families with income under approximately $175,000 qualify for some OSAP support
- Students from families with income under $50,000 typically receive enough in grants to cover tuition at a publicly funded Ontario college or university
- The Ontario Student Grant is the largest component of aid for lower-income students
The exact amounts depend on your family size, income, the institution you attend, and whether you’re living at home or away from home.
How to Apply
- Go to osap.gov.on.ca
- Apply as early as possible after January 1 for the following school year (September)
- Both you and your parent(s) (if you’re a dependent student) will need to consent to share income information from your most recent tax return with OSAP
- Accept your offer and provide any required documentation
- Funds are disbursed at the start of each term
Apply even if you’re not sure you qualify. The assessment is free, and many students who assume they won’t qualify do receive some support.
Repayment: What to Know
Student loan repayment begins six months after you leave school. Key things:
- Interest: As of 2023, federal student loans carry no interest (Prime + 0%). Ontario provincial loan interest: Prime rate. Interest starts accumulating six months after graduation.
- Repayment Assistance Plan (RAP): If your post-graduation income is low, RAP reduces your required payments based on income. Apply through the National Student Loans Service Centre (NSLSC) at nslsc.canlearn.ca
- Disability Relief: If you have a permanent disability, additional repayment assistance or forgiveness may be available
Other Financial Aid to Combine With OSAP
- School bursaries: Most GTA universities and colleges have emergency bursaries, financial hardship funds, and merit-based awards that supplement OSAP. Visit your financial aid office.
- External scholarships: Scholarshipscanada.com and universities’ own scholarship portals list hundreds of external scholarship opportunities.
- Canada Student Grant for Students with Disabilities: Additional grant funding if you have a documented disability
