- 1 OSAP (Ontario Students Assistance Program)
- 2 Key Facts: Premium Payments and Grace Periods
OSAP (Ontario Students Assistance Program)
Estimating your OSAP loan repayments
You can use the Repayment Calculator available on the government OSAP website to estimate what your monthly loan repayments will be once your full-time studies end.
OSAP loan repayments and the grace period
OSAP loan borrowers are not required to make loan payments for the first six months after leaving their post-secondary studies. These six months are known as the grace period. When the grace period ends, your OSAP loans become repayable.
For example, if you were to finish full-time studies in April, then your six-month grace period would conclude on October 31 of that year and loan payments would begin in November.
During the grace period interest will accumulate on your Canada Student Loan, but not on your Ontario student loan.
Grace period extension for non-profit workers
If your grace period has not yet elapsed and you are working (paid or volunteer) with an eligible not-for-profit organization in Ontario, you may apply for a six-month extension to your grace period, to a total of twelve months. During that extension, no payments will be required on your OSAP Loans, and no interest will accumulate on your Ontario or Canada Student Loans. The extension application form and instructions are available on the government OSAP website.
Continuation of interest-free status
To keep your previous student loans interest-free while you continue your studies you must inform the National Student Loans Service Centre (NSLSC) or any other previous lender that you are a still registered as a full-time student.
To make your full-time status known to the NSLSC, on or after the first day of classes:
- Download and print this Continuation of Interest-Free Status / Confirmation of Enrolment (Schedule 2) form.
- Complete Section 1 of the form. Sign and date it.
- Leave the form in the OSAP Documents drop box in the Bennett Centre for Student Services (open 24 hours) or fax it to 416-736-5386.
York University then checks your registration status and posts the update to your OSAP record. The information is sent electronically to the NSLSC and/or previous lenders.
The Continuation of Interest-Free Status form cannot be submitted or posted to your OSAP record before the first day or after the last day of your study period.
National Student Loans Service Centre (NSLSC)
NSLSC administers your OSAP loan. Once your loan has been authorized, the NLSCS disburses the funds, and once you are no longer a full-time student, your loan repayments will be made to them. You can set up an account with NSLSC to track your account.
We encourage you to register online for one of NSLSC's regular loan repayment webinars.
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Center on Budget and
Key Facts: Premium Payments and Grace Periods
Updated June 9, 2016
People who enroll in coverage through a health insurance marketplace must pay a monthly premium in order to effectuate and maintain their coverage. The following questions and answers explains marketplace policies for plan year 2016 on premium payments, grace periods for people who do not pay premiums on time, and termination of coverage for failure to pay premium amounts owed at the end of a grace period.
A premium is the monthly charge that an individual must pay for health insurance coverage. Individuals must continue paying the premium for each month they are enrolled in a health plan until they cancel or change their plan, or else their coverage will be terminated.
Premium payments are generally due around the beginning of the month of coverage. For example, the premium for May might be due on May 1 or April 30. The exact due date of the premium may vary from state to state and among insurance companies. The insurance company will send a bill each month indicating the amount of the premium that is owed and when it is due.
When must the premium for the first month of coverage be paid?
Individuals who select a qualified health plan (QHP) in the marketplace must pay the first month’s premium to complete the enrollment process. A person who applies for coverage and selects a plan, but then fails to pay the first month’s premium, will not be enrolled.
Starting in 2016 in the Federally-Facilitated Marketplace (FFM), the first month’s premium will be due on the effective date of coverage (e.g., May 1 for coverage that starts in May). Insurers can choose to set the due date for the first month’s premium up to 30 days after the effective date of coverage. (Subsequent months may have a different due date for the premium payments.) State-based Marketplaces (SBMs) can establish their own policies for the due date of the first month’s premium, or they can implement the FFM’s policy.
If a person fails to pay the first month’s premium but is still in an open enrollment or special enrollment period, then the individual may go back to the marketplace and reselect a plan. If the non-payment occurs after the open or special enrollment period has ended, the individual will not able to enroll again, and will have to wait until the next open enrollment period (unless he qualifies for a special enrollment period at some point during the year) to re-enroll. For example:
- John applies for coverage during open enrollment between November 1, 2015 and January 31, 2016 and selects a plan on January 10, 2016, with a coverage effective date of February 1, 2016. However, he fails to send in the February premium by the February 1 due date. Therefore, he is never enrolled in the plan, and he cannot enroll until the next open enrollment period in the fall of 2016 unless he qualifies for a special enrollment period before then.
- If instead he selects a plan on December 10, 2015 with a coverage effective date of January 1, 2016, and fails to pay the January premium by the January 1 due date, he is never enrolled in the plan, but because the open enrollment period has not ended, John can go back to the marketplace and select a plan again before the end of open enrollment.
Individuals purchasing coverage through a marketplace can pay their premium directly to the insurance company. The marketplace in some states may also allow enrollees to pay the premium to the marketplace, which will then transfer the payment to the insurer(s).
All plans sold in the marketplaces are required to offer consumers at least the following payment methods:
- money order;
- general purpose pre-paid debit card; and
- Electronic Fund Transfer (EFT).
Some states may require insurers to offer additional payment methods, such as credit card, debit card, or cash. Insurers can also voluntarily accept these additional payment methods even if they are not required to do so.
What happens if a premium is not paid on time?
Enrollees who fail to pay their premium by the assigned due date have a grace period before their coverage can be terminated. The grace period is different for enrollees who receive an advance premium tax credit (APTC) and those who do not. Enrollees receiving an APTC have a grace period of three months. Those who do not receive an APTC have a grace period that is set by state law or regulations (generally 30 or 31 days, or left to the insurer’s discretion).
Enrollees in a grace period can maintain their coverage if they pay all outstanding amounts owed to the insurance company before the grace period ends. If they fail to pay the amounts they owe, the insurer can terminate their coverage. The examples in Figure 1 illustrate how the grace period works:
- Jane receives an APTC and fails to make her April premium payment by the required due date. She is in a 3-month grace period that expires on the last day of June. The premium for each month of the grace period is added to the amount owed. To return to good standing by the start of May, Jane would have to pay the premiums owed for both April and May. To be in good standing by the start of June, she would have to pay the premiums owed for April, May, and June. To avoid plan termination when her grace period ends at the end of June, she would have to pay the premiums owed for April, May, June, and July. If she pays an amount less that the total amount owed during the grace period, she will risk having her coverage terminated if she does not pay the remaining balance by the appropriate due date. If she returns to good standing in May or June, but then misses a future payment, a subsequent grace period is triggered.
- John does not receive an APTC and fails to make his April premium payment by the required due date and enters a grace period that is defined by state law or regulations (in this case, we use one month). If he does not make full payment for both the April and May premiums by the end of the grace period (the end of April), the insurer can terminate his coverage. However, if he pays the required amounts before the end of April, his coverage continues.
How do Advance Premium Tax Credits Affect Grace Periods?