Students are required to consolidate their student loans with their lending institution within six months of the end date of the study period that is on record with their lender. If you are not returning to post-secondary studies you must contact your lending institution and advise them of any change to your address and confirm when your loan consolidation papers are to be signed.
If you are not in a financial position to begin repayment by the due date, you may be eligible to apply for Interest Relief, which is available for both Canada and Ontario Student Loans. Applications for Interest Relief are available from your lender(s).
Do not delay in approaching your lender(s) for information. If you run into financial difficulty once you begin repaying your student loans, speak with your lending institution to see if alternative arrangements can be made.
Consequences of Student Loan Default
There are severe penalties for student loan defaults.
Some of the possible consequences include:
- No future student loan assistance
- Bad credit rating; collection proceedings
- Legal action
- Loss of income tax refunds
- Loss of loan forgiveness
- Additional interest charges
It is in your interest to make every effort to avoid defaulting.
Returning to Full-Time Post Secondary Studies
If you return to full-time post-secondary studies, you must provide to your lender(s) proof of enrollment as soon as you are registered whether you apply for a new student loan or not. Proof of enrollment can be provided with either new student loan documents or CIFS Form (Continuation of Interest Free Status / Confirmation of Enrollment). This will ensure that your lender(s) has a record of the new end date for your study period and that your loans are maintained in interest-free status. You can pick this form up at the Financial Aid office, or print it directly from the OSAP website. Upon receipt of the proper documentation, the Financial Aid office will update your information with your lender(s) electronically.
If you have loans prior to August 2000, your loans are being held by the financial institution (bank) you negotiated your loans with. Loans negotiated after August 2000, your Canada Student Loan is with the National Student Loan Centre, and your Ontario Student Loan is with the financial institution (bank) you negotiated your OSL with. Loans negotiated after August 2001 are with the National Student Loan Centre.
Your lender is the:
- National Student Loans Service Centre (NSLSC)
2 Robert Speck Parkway
PLEASE NOTE: Be sure to keep them informed of any address change!
Students who have received OSAP assistance from a private school must also contact the:
- NSLSC – Private Institution Division
PO Box 779, Station U
Toronto, On M8Z 5P9
1-866-587-7452 within North America
416-503-6671 outside North America – collect
PLEASE NOTE: Students who have received OSAP assistance prior to August 1, 2000 for Canada Student Loan Assistance and August 1, 2001 for Ontario Student Loan Assistance will also need to keep their bank lender informed of any change of address.