You Will Officially Have To Start Paying Back Your OSAP Loans Again Starting Today
The pause on student loans is finally coming to an end. As of October 1st, OSAP student loan repayments are now back in effect.
After a six month pause that was put in place on March 30, interest rates were halted on loans and borrowers were not required to pay until after Septemer 30, 2020.
In an email to Narcity, a spokesperson for the Ministry of Colleges and Universities revealed that this pause would not be extended for the winter months.
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The repayment and interest accrual on OSAP loans will resume on October 1, 2020.
Ministry of Colleges and Universities
According to the OSAP information page, those with existing student loans can expect to see money withdrawn from their accounts on the first of the month if they are on pre-authorized debit.
Others are asked to send their payments in on the first via online banking or cheques.
However, those who may be struggling to put forward installments at this time are able to opt into a Repayment Assistance Plan through OSAP.
That way, your monthly dues could potentially be lowered.
"While this deferral is ending, the Ontario Student Assistance Program (OSAP) continues to provide options for borrowers who may face challenges with OSAP loan payments," wrote the ministry.
According to the Ministry of Colleges and Universities, the payment deferral has saved Ontarians $100 million on principal payments, along with $30 million on interest.