Continuation of Interest-Free Status

Continuation of Interest-Free Status

Information for Returning Full-Time Students

If you return to school in at least 60% of a full-time course load (40% with a documented disability) for at least six (6) weeks, you can re-activate your interest-free status on outstanding Canada/Ontario Student Loans even if you do not take out additional loan funding.

Submit an online application for Continuation of Interest-Free Status through the OSAP website, after classes begin. Once processed, this application lets your lender know you are back in full-time studies.

Please note: The withdrawal from full-time studies in the fall term means there’s an overpayment in your OSAP account, which will be deducted from the winter term OSAP assessment. As a result, students in this situation may receive little or no OSAP in the winter term. 

Information for Students in a Part-Time or Micro-credential Program

Students with previous OSAP for Micro-credentials funding who return to school must ensure that their Micro-credential Student Loans are placed into interest-free status. 

Students in a micro-credential program or a part-time program should use the Continuation of Interest-Free Status Micro-credentials Application if they:

  • Have outstanding micro-credential student loans issued through OSAP.
  • Are not submitting an OSAP Application for Micro-credentials or an OSAP Application for Part-time Students for their current study period.
  • Are in or within 15 days of starting a micro-credential or part-time program that is approved for OSAP purposes.
  • Meet the following eligibility requirements for their school, program and study period length:
    • Students can apply for interest-free status for their previous Micro-credential student loans if they are enrolled in a micro-credential or part-time program at a postsecondary school approved for OSAP purposes.
    • The micro-credential study period must be less than 12 weeks in length or the part-time program must be 4 to 52 weeks in length.
    • All aspects of the student’s study period can be considered for interest-free status, as long as their micro-credential or part-time program is approved for OSAP purposes. For part-time programs, this includes co-op work terms and work placements.

See the Continuation of Interest-Free Status Micro-credentials Application available via the “Forms” section of for more information regarding eligibility, processing requirements and instructions, including instructions for OSAP for Part-time Student loans in interest-free status.

Note: Part-time or full-time students with outstanding Micro-credential student loans who are submitting an OSAP Application for Part-time Students or OSAP Application for Full-time Students are not required to submit a Continuation of Interest Free Status for Micro-credentials Application because their Micro-credential student loans will automatically be put into interest-free status.