It’s no secret that attending a college or university in Ontario can be hard on your wallet. While some students have the financial means to fund their post-secondary pursuits, others aren’t so lucky. Many students must rely on scholarships, grants, loans, and government-sponsored aid programs. One of the most prominent programs is the Ontario Student Assistance Program (OSAP).
Let’s get into more detail about OSAP, including how to qualify and how much you can expect to receive.
Key Points
| What does OSAP stand for? | Ontario Student Assistance Program |
| What is OSAP? | OSAP is a financial assistance program that provides grants and loans to eligible post-secondary students in Ontario. |
| Who’s eligible for OSAP? | You’re eligible to apply so long as you are a Canadian citizen, permanent resident or a protected person. |
| How much can you get? | As a full-time student, you may receive up to $520 per week as an eligible student with an OSAP loan, or up to $6,300 per year through Canada Student Grants. |
| OSAP repayment | OSAP loans do not have to be repaid while you’re in school, and no payments are ever needed for grants. |
What Is The Ontario Student Assistance Program (OSAP)?
OSAP is a financial assistance program that helps students and their families cover post-secondary education costs. The program is funded by the federal government and the province of Ontario. It aims to supplement students’ existing financial resources rather than fully replace them.
There are essentially two types of funding available through OSAP:
- Student loans: These are borrowed funds you need to pay back once you graduate.
- Grants: These are a form of needs-based funding provided to students based on specific criteria, such as household income. You’re not required to pay back any grants you receive.
What Does OSAP Cover?
OSAP can be used to cover various expenses associated with attending a post-secondary institution, such as:
- Tuition
- Books
- Equipment
- Various fees charged by the school
- Living expenses (for full-time students only)
- Childcare (for full-time and part-time students with children)
How Does OSAP Work?
The goal of OSAP is to enable students to attend university or college, who would otherwise not be able to due to a lack of adequate financial resources. At its core, it’s an education financing program, and it works in a straightforward manner.
Upon approval of your application, OSAP will forward the money directly to the university. The university will then apply the funds against your tuition account, clearing the outstanding balance. Should there be a shortfall, it will be up to you to pay the balance.
For instance, suppose your OSAP loans exceed your tuition cost. In that case, the surplus will be deposited into your bank account (if you arranged for direct deposit), which you can then use to pay for books, materials, equipment, etc.
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How To Qualify For OSAP?
You can apply for OSAP at any age, as long as you fall into one of the following categories:
- You’re a Canadian citizen
- You’re a permanent resident
- You’re a protected person
You may not be eligible if you fall into one of the following categories:
- You don’t meet the academic requirements
- You have adequate financial resources, including access to other government financial aid programs to cover your university expenses
- There is a significant difference between the income you reported on your OSAP application and the income reported on your tax return
- You’ve defaulted on a student loan in the past
- You have overpayments from grants, bursaries, or loans
- You failed a credit check
- You’ve been through a bankruptcy or a consumer proposal
- You’ve reached your lifetime student loan limit
- You’re an international student
- You don’t reside in Ontario
If you qualify for OSAP, you can use it to fund your post-secondary education in any private or public university or college in the world, provided it’s been approved. To check if your school is approved, visit OSAP School Search.
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How To Apply For OSAP?
Applying for the OSAP is easy enough and will only take about 15 minutes to complete.
- Your first step will be to register for an account. You can complete your application online on the Government of Ontario website. Click on the Education and training link and then the OSAP link.
- Once you’ve created an account, fill out and submit your application and attach copies of any necessary documents. Ensure you print out and sign the consent and declaration pages, which you can then upload to the OSAP website.
- If this is your first time applying for OSAP, you must submit the Master Student Financial Assistance Agreement (MSFAA).
- Once your application is accepted, you’ll receive a welcome email from the National Student Loan Service Centre, along with further instructions to verify your banking details and identity.
How Much Can You Get Through OSAP As A Full-Time Student?
The amount of money you can receive through OSAP varies and depends on several factors, such as:
- Your education expenses – include tuition, books, living expenses, supplies, equipment, miscellaneous fees, and childcare costs.
- Program load – whether you’re attending on a full-time or part-time basis
- Program hours – applicable to students enrolled in a micro-credential program
- Financial circumstance – consideration of your financial situation and that of your family, dependents, and other factors.
- Access to other forms of financial aid – this includes scholarships and bursaries.
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Maximum OSAP Amount You Can Get As A Full-Time Student
Below is an overview of the maximum amount that you can receive from OSAP for the 2024-2025 academic year:
| Type Of Post-Secondary Institution | OSAP Weekly Maximums For Single Student With No Dependents | OSAP Weekly Maximums For Students Who Are Married/Common-Law/Sole Parents |
| Public colleges or universities in Ontario | $520 | $850 |
| Approved private post-secondary schools in Ontario | $520 | $850 |
| Public colleges or universities in another Canadian province | $520 | $850 |
| Private post-secondary schools in another Canadian province | $300 | $300 |
| Private or public post-secondary schools outside Canada | $300 | $300 |
Maximum OSAP Amount You Can Get As A Part-Time Student
Below is an overview of the maximum amount you can receive from OSAP if you’re a part-time student:
| Program | Maximum OSAP per Academic Year (2024-2025) |
| Part-Time Canada Student Loan | Your outstanding student loan balance is limited to $10,000 at any time |
| Canada Student Grant for Students with Permanent Disabilities | $2,800 |
| Canada Student Grant for Part-Time Studies | $2,520 |
| Canada Student Grant for Part-Time Students with Dependents | $2,688 |
| Ontario Part-Time Grant | $500 |
Maximum OSAP Amount You Can Get As A Student In Micro-Credential Programs
If you’re planning to attend an approved micro-credential program at a public post-secondary institution in Ontario, you qualify for OSAP. The amount you’re entitled to get depends on several factors, including your family size and annual household income. The maximum per study period is:
- $5,000 for tuition, program fees, books, and equipment
- $5 per study hour, as an education allowance
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How To Get More Money From OSAP?
You may be eligible to get extra financial assistance to supplement your OSAP payments through Canada Student Grants:
- Maximum of $6,300 per year for full-time students
- Maximum of $280 per month per child for full-time students with dependents
- Maximum of $2,800 per year for students with disabilities
You may also be able to obtain further funding if you’re an Indigenous person or a youth in or from Extended Society Care.
Paying Back Your OSAP Loan
As mentioned, you will have to pay back any funds borrowed through the OSAP program. However, you don’t need to make any loan repayments while you’re in school.
Loan repayments may be required 6 months after you graduate or leave school, and are made to the National Student Loans Service Centre (NSLSC), not to OSAP.
Your loan payments are based on a 9.5 year repayment schedule, which is the average amount of time it takes to repay an OSAP student loan. That said, you may choose to pay your loan off earlier if you have the financial means to do so.
Once your loan is fully repaid, you’ll receive a notice from the National Student Loans Service Centre relieving you of your obligations to make any further payments.
What If I Have Trouble Repaying My OSAP Loan?
If you’re having financial issues that are making it difficult to repay your OSAP loan, you may qualify for repayment assistance. Through the Repayment Assistance Plan, you may reduce your monthly loan payments for 6 months, or have your payments exempt altogether during the 6-month period. To be eligible for this plan, your student loans must be in good standing, which means your OSAP loan is not in default.
You may also choose to have your repayment period extended from 9.5 years up to as long as 14.5 years to give you more time to pay off your OSAP loan.
Are OSAP Loans Considered As Taxable Income?
OSAP loans are not considered income for income tax purposes. While you’re still in school, you don’t have to claim your loan when you file your income taxes.
However, once you enter your loan repayment period following graduation (or you leave school for other reasons), you can claim the interest portion of your OSAP loan as a tax-deductible. This is a non-refundable credit for interest paid and helps reduce the amount of taxes you’re required to pay.
Are OSAP Grants Considered As Taxable Income?
OSAP grants are not taxable if you’re an eligible full-time student. Grants are funds given for education and are considered a type of income. As long as the funds are put towards your eligible post-secondary education, the money you receive through the grant is not taxable.
If you’re a part-time student, however, your grant may be taxable depending on the grant amount and all school costs.
If you received an OSAP grant, you’ll record your grant income amount on your T4A.
Final Thoughts
Depending on your family’s financial situation, a student loan or grant may be essential if you hope to attend university. If you’re planning on full-time studies, the OSAP program is quite generous: it will help cover your tuition, books, equipment, and even your living expenses and childcare costs. The financial support will enable you to focus on your grades at school rather than your bank account balance.
