Maintain Interest-Free Status
Maintain Interest-Free Status
Not ready to start repaying your loans? Or continuing your studies and need more financial aid? You may be eligible for interest-free status.
Interest-free status is a period of time where your provincial and territorial student loans don’t accrue any interest and there are no repayment obligations expected of you. To maintain interest-free status during your studies, you must apply for provincial or territorial loans or submit an interest-free status application through your lender. This will extend your Non-Repayment Period.
The process for maintaining interest-free status depends on whether you are studying full-time or part-time:
- For full-time students: Submit the interest-free application that applies to your province or territory. If you have Ontario student loans from the Ontario Student Assistance Program (OSAP), submit a Continuation of Interest-Free Status (CIFS) application.
- For part-time students: Submit a Schedule 2 to your student financial assistance office. The same form is used by all Canadian provinces and territories.
If you have previous loans and don't reapply for government assistance or submit an interest-free application, the government assumes you're no longer in studies and your student loans enter repayment.
If you’re returning to full- or part-time studies with student loans from another province or territory, you may not have to pay interest or make payments while you’re back in school. Your loan type and province or territory determine if you qualify.
Depending on your loan program, your interest-free status is administered through your provincial or territorial student aid office or the National Student Loans Service Centre (NSLSC).
You’re responsible for keeping your loan requirements up to date, which includes confirming your enrolment and monitoring your online account.
For help, contact your provincial or territorial student aid office or the NSLSC (external link) directly.
Here are some examples of what happens to your interest if you return to school either full-time or part-time, within the 6-month grace period (12 months if you're a student from Alberta).
Example 1: Returning to Full-Time Studies
- You have previous government student loans
- You received full-time government student financial assistance or had interest-free status application approved up for the past winter term
- You’re returning to studies full-time in the upcoming fall term
What happens to your interest? Your interest will be waived from the end of winter term to the start of the fall term only if you apply for either full-time government student financial assistance or submit the interest-free application that applies to your province or territory.
Example 2: Returning to Part-Time Studies
- You have previous part-time government student loans
- You received part-time government student financial assistance or had a Schedule 2 approved for the past winter term
- You’re returning to studies part-time in the upcoming fall term
What happens to your interest? Your interest will be waived from the end of the winter term to the start of the upcoming fall term only if you apply for either part-time government student financial assistance or submit a Schedule 2.
CIFS is the specific name of the interest-free status application for Ontario students. If you received full-time OSAP funding in the past and are continuing your studies full-time but not applying for further full-time loans, you should complete a CIFS application through your OSAP portal to ensure your loans are placed into interest-free status.
You don’t need to apply for both OSAP and interest-free status — you only choose one. The confirmation of enrolment process through your full-time OSAP and your CIFS application will signal the National Student Loans Service Centre (NSLSC) that you're continuing your studies and keep your loans interest-free.
You can apply for full-time funding since your work term is equivalent to a 100% course load. If you don’t want government financial aid, submit a CIFS application to keep your previous full-time provincial/territorial student loans in interest-free status.
Please allow 2 to 3 weeks from your submission date for it to be reviewed. You can track your application's progress on our OSAP Processing Dates page. You'll also receive a communication through your OSAP Message Centre once your application has been processed.
Apply for CIFS Online
If you received part-time provincial or territorial funding in the past, are continuing your studies part-time and not applying for further part-time government financial aid, you should complete a Schedule 2 to ensure your loans are placed into interest-free status.
You don't need to apply for both provincial/territorial loans and submit a Schedule 2 — please choose only one option. Confirming your enrolment through your provincial/territorial lender or your Schedule 2 signals the National Student Loans Service Centre (NSLSC) that you're continuing studies and keeps your loans interest-free.
If you're an Ontario resident, you must complete the Canada Student Loans Program (PDF file) Confirmation of Enrolment Schedule 2 Form (external link) and submit it to our Student Financial Assistance office.
