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.
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
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. This voluntary
payment(s) will not affect your current or future eligibility
for Interest Relief.
Interest Relief Programs
There are three interest relief programs that you may apply
for depending on the type of loans that you have:
- Canada-Ontario Integrated Interest Relief Program
- Ontario Student Loans Plan Interest Relief Program
- Canada Student Loans Plan Interest Relief Program
TIP - To extend your period of interest relief for both the Canada
and Ontario Student Loans, you must re-apply every six months.
TIP - YOU MUST make your required loan payments until your interest
relief application has been approved. Do not neglect your payments
on the basis that you have applied for interest relief. You
could end up in default! Continue to make the required loan
payments until notified of your approval by the National Student
Loans Service Centre and your financial institution (if applicable).
If you make a payment while you are receiving interest relief,
it will be applied directly to the principal amount of your
TIP - Apply for debt reduction, if you are unable to make your payments,
have exhausted all other options and you have been out of school
for at least 5 years, you may apply to have your student loan
principal reduced. For more information about debt reduction
in repayment contact the National Student Loans Service Centre.