OSAP grants vs loans: what you keep and what you pay back
OSAP grants vs loans explained: how your package splits between non-repayable grants and repayable loans, federal grants inside OSAP and smart choices.
When your OSAP assessment arrives, it usually lists several pieces of funding. Some are grants you keep. Others are loans you repay. Knowing which is which helps you decide how much to accept and how to plan your budget. This guide uses information from ontario.ca and canada.ca.
The basic difference
- Grants are non-repayable. As long as you meet the program's conditions, you do not pay them back.
- Loans must be repaid after you leave school, with interest rules set by each government.
The Government of Canada's Canada Student Grants and Loans page describes grants as money you do not have to pay back and loans as money you do.
Where the money comes from
An OSAP package can include four types of funding:
- Ontario grants, from the Government of Ontario.
- Ontario loans, from the Government of Ontario.
- Canada Student Grants, from the Government of Canada.
- Canada Student Loans, from the Government of Canada.
You apply once, through OSAP, and are assessed for all of them.
Federal grants inside your OSAP
The federal government offers several grants that are assessed automatically when you apply through your province:
- Canada Student Grant for Full-Time Students: up to $4,200 per school year, or $525 per month of study, until the end of the 2026 to 2027 school year, based on need and income thresholds.
- Grant for full-time students with dependants: $280 per month, or $2,240 per year, for each eligible dependant.
- Grant for part-time students: up to $2,520 per year until the end of the 2026 to 2027 school year, not more than your assessed need.
- Grant for students with disabilities: $2,800 per year for eligible students.
Amounts and thresholds are set by the Government of Canada and can change. Check the official pages for the current year.
Why your package is a mix
OSAP calculates your assessed need, then awards funding according to program rules and your eligibility. Grants are often awarded first up to their limits, and loans can fill remaining need. Your mix depends on:
- Your family income, and whose income counts.
- Your program, school and study period.
- Your family situation, such as dependants.
- Whether you study full-time or part-time.
Two students in the same program can get very different grant and loan splits.
Should you accept the loan portion?
Loans are an investment in your education, but they are debt. Consider:
- Do you need the full amount? Build a realistic budget for tuition, books, housing, food and transportation.
- Can other sources cover part? Scholarships, bursaries, part-time work and savings.
- What will repayment look like? Read the repayment terms on the official sites before accepting.
Some OSAP funding may be offered as a package. Ask OSAP or your financial aid office how reducing loans affects grants before you decline anything.
Conditions on grants
Grants are not repaid only if you meet the conditions. If you withdraw, drop below the required course load or do not complete the period you were funded for, you may have to repay some or all of the grant, or it may be converted to a loan or treated as an overpayment. Read your assessment and contact your school's financial aid office before changing your enrolment.
After you finish school
Loans enter repayment after you leave school, under the rules of each program. The federal government offers repayment assistance for eligible borrowers. Keep your contact information current so you receive notices.
Making the most of grants
- Apply every year. Grants are reassessed annually.
- Report dependants and disabilities. These can unlock additional grants.
- Apply on time. Late applications can affect what you receive.
- Look beyond OSAP. Bursaries and scholarships from your school and community add more non-repayable money. See scholarships and bursaries in Canada.
Frequently asked questions
Can I get OSAP grants without loans? Your package depends on assessed need and program rules. Ask OSAP how changing your loan amount affects grants.
Do I pay interest on grants? No. Grants are not repaid when you meet the conditions.
Will my grant be the same every year? Not necessarily. Each year is reassessed based on current information and program rules.
Is the Canada Student Grant separate from OSAP? It is federal funding, but you are assessed for it through your OSAP application.
Before you apply: a quick checklist
- Use the official application site, never a paid third-party service. Applying for government student aid is free.
- Check the current year's deadlines on the official page and on your school's financial aid site.
- Gather your ID, tax information and, if required, a parent's or spouse's information before you start.
- Apply every year you need aid. Most programs require a new application for each school year.
- Read your award notice to see which parts are grants and which are loans.
- Keep your school's financial aid office in the loop. They can explain your package and point to bursaries or scholarships you may have missed.
- Watch for scams: no legitimate program charges a fee to get a grant or scholarship.
Questions to ask your financial aid office
Your school's financial aid staff see hundreds of situations like yours every year. Before you accept an offer or make a big decision, ask them:
- Which parts of my package are grants or scholarships, and which are loans or work-study?
- Are there school bursaries, scholarships or emergency funds I have not applied for yet?
- What happens to my aid if I drop a course or change my program?
- What do I need to do to keep this funding next year?
- Can my aid be reviewed if my family's income has changed?
Write down the answers and the name of the person you spoke with, so you can refer back to them later.
Keep exploring on GrantSift
Find student funding that fits you
Official aid pages are the source of truth, but scholarships, bursaries and grants are scattered across governments, schools and foundations. GrantSift brings student funding from official sources in the US and Canada into one place, with a short student check that matches programs to your province or state, level of study and field. Every listing links to the official page, and student aid that is a loan is labelled as a loan. Search scholarships and student grants or see plans and pricing.