Ontario Student Loan Payments Deferred During Pandemic
|The Huffington Post 25 Mar 2020 at 19:09|
Students protest changes to OSAP at Queen s Park in January 2019. The Ontario government on Wednesday announced loan repayments would be paused for six months amid the COVID-19 pandemic.
Ontarios fiscal update, released in lieu of the 2020 budget amid the COVID-19 pandemic, contains good news for those with student loans.
The province will temporarily defer loan payments and interest accrual for six months for students borrowing through the Ontario Student Assistance Program (OSAP).
The changes will come into effect March 30 and last until Sept. 30.
The move comes a week after the Canadian government announced a similar pause on payments and interest accrual for federal student loans over the same period.
The province said in its action plan that its measures were in coordination with the federal governments measures, leaving more money in the pockets of student borrowers.
The Canadian Federation of Students (CFS) had been calling on the province to take this step.
Kayla Weiler, Ontario representative for the CFS, said in a statement the organization is glad the province has listened to students in deferring loan repayments through September.
However, she added that students need more support during COVID-19, including housing security and the suspension of rent payments, as well as giving international students access to health care through the Ontario Health Insurance Plan, for which they are currently not eligible.
The Ontario Undergraduate Student Alliance (OUSA) released a statement saying it was thankful the governments action plan included the six-month moratorium.
This will help ensure that graduates entering an uncertain economic period have the time and support they need to find high-quality employment before they have to repay their loans, the statement read.
The OUSA also said it will continue to advocate for a two-year, interest-free grace period for all students graduating in 2020.
In 2019, the Ontario government announced sweeping changes to OSAP . This included cutting the free tuition measure introduced by the previous Liberal government, which gave low-income students funding to cover tuition in the form of a grant. Under the Conservative governments changes, at least 10 per cent of a students assistance had to be in the form of a loan.