Ontario Student Group Asks For Interest-free OSAP

In the wake of Newfoundland and Labrador eliminating the interest on their provincial student loans, many of Ontario’s students are asking “what about us?”

A student organization called The Students Action Group from Centennial College Toronto is calling out and asking the McGuinty government to axe the interest on Ontario Students Assistance Program (OSAP) loans.

Right now, OSAP loans have an interest rate of prime + 1%. However, the rates may vary from institution to institution. If you default on your loan, the Canada Revenue Agency (CRA) can withhold your income tax refund.

While there are no plans to lift or reduce the interest rates, The Ontario Government recently changed the repayment terms to include a no-interest period on student loans for six months after graduation. They also invested an additional $81 million into OSAP programs, while announcing 1,000 new graduate scholarships and more flexible repayment options.

“Today’s students are the builders, dreamers and innovators who will lead Ontario into the future. By providing them with the financial support they need to go to college or university, we’re helping them to reach their full potential and we are building an Open Ontario that will create jobs and strengthen our economy,” said John Milloy, Minister of Training, Colleges and Universities

Do you feel that OSAP’s rates and terms are fair? Please comment below.