Interest Relief
In this section . . .
Learn about the various interest relief programs:
If you are temporarily unable to repay your Canada-Ontario Integrated Student Loan or Part-Time Canada Student Loan because of low income, you may be eligible for interest relief.
During a six-month period of interest relief, you are not required to make any
loan payments. The Government of Canada and/or the Government of Ontario pays the interest for you.
How Interest Relief Works
During periods of interest relief you are not required to make payments on either the outstanding principal of your loan or on the interest. The
Government of Ontario and/or the Government of Canada pays the interest on your behalf. Neither government makes payments to reduce the outstanding principal.
Interest relief is granted for periods of six months, up to a maximum of 30 months. You may be eligible for extended interest relief
of up to an additional 24 months provided you have not been out of out of school for more than 60 months from your last study period end date.
Once the interest relief period is over, you are responsible for making loan principal and interest payments. If you make a payment while you are receiving interest relief, it will be applied directly to the principal amount.
There are three interest relief programs that you may apply to depending on the type of loans that you have:
- If you have a Canada-Ontario Integrated Student Loan only or in addition to a Canada Student Loan and/or an Ontario Student
Loan, you must apply for integrated interest relief through the
Canada-Ontario Integrated Interest Relief Program. The National Student Loans Service Centre (NSLSC) administers this program and will provide you with a pre-filled and personalized integrated interest relief application form to complete.
- If you have an Ontario Student Loan (OSL) that was negotiated before August 1, 2001,
but do not hold a Canada-Ontario Integrated Student Loan, you must apply for interest relief though the
Ontario Student Loans Plan Interest Relief Program which is administered by the financial institution that holds your
Ontario Student Loan. Application forms are available for
printing.
- If you have a Canada Student Loan (CSL) that was negotiated before August 1, 2000,
but do not hold a Canada-Ontario Integrated Student Loan, you must apply for interest relief through the
Canada Student Loans Plan Interest Relief Program which is administered by the financial institution that holds your
Canada Student Loan. Further information is available on the Canlearn website at
http://www.canlearn.ca.
- If you have a Canada Student Loan that was negotiated from August 1, 2000 to July 31, 2001,
but do not hold a Canada-Ontario Integrated Student Loan,you must apply for the
Canada Student Loans Plan Interest Relief Program through the
National Student Loans Service Centre (NSLSC). Further information is available on the Canlearn website at
http://www.canlearn.ca.
The Canada-Ontario Integrated Interest Relief Program is for borrowers who have a Canada-Ontario Integrated Student Loan alone or in addition to a Canada Student Loan and/or Ontario Student Loan.
Level of Assistance
Interest relief is granted for periods of six months, up to a maximum of 30 months. You may be eligible for extended interest relief beyond the current 30-month maximum provided you have not been out of school for more than 60 months from your last study period end date.
Eligibility
The following is a list of eligibility requirements:
- You must have consolidated your loan(s) and signed a Consolidation Agreement for your Integrated Student Loans, Canada Student Loans, and/or Provincial Student Loans, as applicable. If you have not signed a Consolidation Agreement, contact the NSLSC and/or your Financial Institution, as applicable.
- You must reside in Canada. For the purposes of this application, an individual who is participating in an international internship program or is a member of the Canadian Armed Forces who is stationed abroad is considered to be residing in Canada.
- You must pay or capitalize (up to a maximum of three months) any unpaid interest as of the start of the period for which you are eligible for interest relief in order to receive interest relief.
- Your monthly gross family income (before deductions) must fall within the maximum income guidelines. You can view these guidelines on the back of this form, by visiting
http://www.CanLearn.ca or by requesting a copy of these guidelines from the
NSLSC.
- Your eligibility for interest relief must not have been previously revoked or terminated.
- You may be ineligible for interest relief if you are currently restricted from eligibility for student loans from the Government of Canada and/or the province from which your student loans were issued.
You must meet the eligibility requirements for all Canada and provincial student loans covered under your application for the Canada-Ontario Integrated Interest Relief Program.
Periods of Interest Relief
- Interest relief is available for periods of six months up to a maximum of 30 months at any point during the repayment of your loan. Additional periods of interest relief may be available to you if you meet the eligibility criteria and you have not been out of school for more than 60 months
(five years) from your last period of study end date.
- You must meet all eligibility criteria in the month your application is dated in order to be granted interest relief. If you are eligible, you may have your interest relief
period applied retroactively to begin up to six months prior to the month your application is dated.
- In respect of your full-time student loans, an interest relief period cannot start before the first day of the seventh month following your last period of study end date.
How to Apply
This program is administered by the NSLSC. You must contact the appropriate division of the NSLSC in order to apply for integrated interest relief. You will be provided with a
pre-filled and personalized “Application for Special Interest Free Period (Interest Relief)".
You must submit a separate application for each 6-month period of interest relief. You may apply for a subsequent period of interest relief the day after your current period ends. You must submit supporting documentation with your application. This includes proof of your spouse’s student loan payment amounts, if applicable, proof of gross monthly family income, and/or proof of your
and your spouse's monthly student loan payment(s) for loans issued
by a province other than Ontario, if applicable.
The Ontario Student Loans Plan Interest Relief Program is for borrowers who have previous Ontario Student Loans but do not have Canada-Ontario Integrated Student Loans.
Level of Assistance
Interest relief is granted for periods of 6 months, up to a maximum of 30 months. You may be eligible for extended interest relief
of up to 24 months provided you have not been out of school for more than 60 months from your last study period end
associated with your first Ontario Student Loan interest relief approval. If you
have been approved for interest relief prior to March 1, 2005, your postsecondary
study period end date as of March 1, 2005 will be used to assess your
eligibility for extended interest relief.
Eligibility
You are eligible for interest relief if:
- You must have consolidated your loan(s) and entered into a Consolidation Agreement for your Ontario Student Loans. If you have not entered into a Consolidation Agreement, contact your financial institution.
- You must reside in Canada. For the purposes of this application, an individual who is participating in an international internship program or is a member of the Canadian Armed Forces who is stationed abroad is considered to be residing in Canada.
- You must pay or capitalize (up to a maximum of 3 months) any unpaid interest as of the start of the period for which you are eligible for interest relief in order to receive interest relief. You may only capitalize interest once during the life of your Ontario Student Loans. If you are eligible to capitalize any unpaid interest, you must enter into a new Consolidation Agreement.
- Your monthly gross family income, before deductions, must fall within the maximum income guidelines. You can view these guidelines by visiting http://osap.gov.on.ca or by requesting a copy of these guidelines from your financial institution.
- Your eligibility for interest relief must not have been previously revoked or terminated.
- You may be ineligible for interest relief if you are currently restricted from eligibility for student loans from the Government of Canada and/or the province from which your student loans were issued.
Periods of Interest Relief
- Interest relief is available for periods of 6 months up to a maximum of 30 months at any point during the repayment of your loan. An additional 24 months of extended interest relief may be available to you if you are within 60 months (5 years) of ceasing to be a student.
- You must meet all eligibility criteria in the month your application is dated in order to be granted interest relief. If you are eligible, you may have your interest relief period begin up to six months prior to the month in which your application is dated.
- An interest relief period cannot start before the first day of the seventh month following your last period of study end date.
Example:
The number of persons in your family unit is 3 and the combined monthly student loan payments you and your spouse make on your and your spouse's student loans is $250. To be eligible for interest relief, you must have a total monthly gross family income of no more than $3,515.
Click here for an Adobe Acrobat PDF file of the Income Eligibility Chart that is
effective after August 1, 2005.
Application Procedure
You can print a copy of the application form.
You must complete Sections 1, 2 (if applicable), and 4 of the application. Send the completed application and any required supporting documentation to the financial institution holding your Ontario Student Loan. The financial institution will complete
Section 3 and adjudicate your application for interest relief.
You must submit a separate application form for each 6-month interest relief period.
Second or Subsequent Applications
You may submit an Ontario Student Loan Plan Application for Interest Relief for a second or any subsequent period of interest relief no earlier than one month before the end of your current interest-relief period and no later than three months after the end of your current interest-relief period.
If you do not reapply for interest relief within the six months, there will be a gap between your last interest-relief period and the new interest-relief period. To cover this gap, you may enter into a revised consolidation agreement with your financial institution and capitalize (add to your loan) up to 3 months of accrued interest. If you still owe additional interest, you must pay the financial institution before applying for interest relief.
Notification Procedures
Your application will be adjudicated by your financial institution.
- If your interest relief application is approved, you will be sent a letter indicating the period of interest relief for which you are eligible.
- If your interest relief application is refused, you will be sent a letter explaining why your application has been refused. Note: If you do not receive a letter eight weeks after you applied, we recommend that you contact your financial institution to check the status of your application.
- If information is missing, you will be sent a letter explaining what information is required. Note: You must provide the correct and/or missing information within one month of the date of the financial institution’s letter or your application for interest relief will be cancelled.
The Canada Student Loans Plan Interest Relief Program is for borrowers who have previous Canada Student Loans but do not have Canada-Ontario Integrated Student Loans.
Further information on this program, including the application form, is available from the
Canlearn website, the financial institution holding your loan, or from:
Interest Relief Program
Canada Student Loans Plan
PO Box 2090 Station D
Ottawa ON K1P 6C6
Telephone: (819) 994-1844
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