One-Year OSAP Grace Period for Entrepreneurs
If your six-month grace period has not yet ended and you are the owner or joint owner of an eligible new business, you may be eligible for a six-month extension to your existing grace period. This means you would get an extra six months before you must start repaying your Ontario Student Loan and/or the Ontario portion of your Canada-Ontario Integrated Student Loan issued through OSAP.
Offered by Ministry of Colleges, Universities, Research Excellence and Security
Amount
No fixed amount
Quick eligibility check
Who can apply
To be considered, you must meet all of the following criteria:
- You left full-time postsecondary studies within the last six months.
- You have full-time OSAP loans not currently in repayment status.
- You are the sole owner or joint owner of an eligible new business operating in Ontario.
- You are currently working in Ontario at least 30 hours per week for your eligible new business.
Sole owner or joint owner includes a director or officer of the business with a controlling share.
Eligible new business
Eligible new business means:
- a business that has been registered with the Canada Revenue Agency (CRA) within the current calendar year or within the two previous calendar years; or
- a business registered with the CRA in which you acquired a controlling interest within the current calendar year or within the two previous calendar years.
About the funding
If your six-month grace period has not yet ended and you are the owner or joint owner of an eligible new business, you may be eligible for a six-month extension to your existing grace period. This means you would get an extra six months before you must start repaying your Ontario Student Loan and/or the Ontario portion of your Canada-Ontario Integrated Student Loan issued through OSAP.
How the six-month grace period extension works
During the six-month grace period extension, no payments will be required on your Ontario Student Loan and the Ontario portion of your Canada-Ontario Integrated Student Loan. Federal government loans issued through OSAP are not covered by this program.
Once the six-month grace period extension has ended, payments on your Ontario Student Loan and the Ontario portion of your Canada-Ontario Integrated Student Loan will resume. In addition, any interest that has accrued during the one-year grace period becomes repayable.
Government student loans issued through other provinces or territories are not covered by this program.
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