TORONTO — Ontario will defer student loan payments and keep interest until the end of September.
The Progressive Conservative government said students will not have to make Ontario Student Assistance Plan (OSAP) payments for a six-month period between March 30 and September 30 as the province recovers from the COVID-19 pandemic. 19. Interest will also not accrue on top of your loan during this time period.
Deferment is accessible to “borrowers in good standing.”
The Minister for Colleges and Universities said in a statement issued on Wednesday that the decision was made “to remove financial barriers to post-secondary education” in this “unprecedented period”.
“Investing in higher education is one of the most important investments a person can make in their future,” said Ross Romano.
The announcement was made as applications opened for the 2020-21 school year. Students who wish to apply for a loan will also need to complete an “information module” which will ensure they understand how OSAP works and can demonstrate financial literacy.
Last year, the Ontario government, under the leadership of Premier Doug Ford, made several changes to the cost of post-secondary education, including a 10 percent reduction in tuition fees and allowing students to opt out. on certain student expenses. They also made changes to OSAP, effectively eliminating a six-month grace period after a student’s graduation on which no interest was charged and lowering the annual income threshold at which students must begin paying OSAP from $35,000 to $25,000.