Ontario Student Loan Forgiveness: options and how it works

If you’re searching “Ontario student loan forgiveness” hoping to fill out one form and watch your OSAP balance disappear, I need to reset expectations. Ontario doesn’t have blanket “wipe-it-all” forgiveness for everyone. But that doesn’t mean you’re stuck paying the full balance the hard way.

There are legitimate pathways that can reduce your balance, lower your payment (sometimes to $0), pull you out of default, or—only in strict cases—clear student debt through legal insolvency rules. The trick is matching the right program to your situation.

Which situation sounds like you?

• You’re a nurse/nurse practitioner or family doctor/resident: Canada Student Loan Forgiveness can reduce the Canada portion of your loan (up to $30,000 for nurses/NPs, $60,000 for family doctors/residents).
• Your monthly payment is crushing you: RAP (Repayment Assistance Plan) can lower payments—sometimes to $0—in 6-month blocks while keeping you in good standing.
• You’re behind / in collections: Ontario has a rehabilitation path to get you back into good standing so you can use tools like RAP again.
• You’ve been out of school 7+ years and you’re drowning: bankruptcy/consumer proposal rules might apply, but this is professional-advice territory.

Need the official phone numbers?

• NSLSC (National Student Loans Service Centre): 1-888-815-4514
• OSAP (Ontario): 1-807-343-7260

Trying to avoid surprises? Use our student budget planner for Ontario to map rent, transit, and loan payments in one place.

First, understand what you actually owe (this changes everything)

Most Ontario borrowers have a Canada–Ontario Integrated Student Loan. It shows as one account, but it’s still two pieces behind the scenes:

• Canada (federal) portion: interest-free since April 2023
• Ontario (provincial) portion: still charges interest (commonly described as floating at prime + 1%)

Why this matters:

• The “forgiveness” program people talk about applies to the Canada portion only.
• Even when RAP lowers your payment, the Ontario portion may keep accruing interest.
• If you’re planning aggressively, you’ll usually want a strategy for each portion.

A lot of borrowers free up cash by cutting commuting costs—our student transit discount breakdown can help you spot savings you might be missing.

The one program that’s true “forgiveness” (if you qualify)

Canada Student Loan Forgiveness (nurses/NPs + family doctors/residents)

This program is real—and powerful—but it’s targeted. You qualify by working in eligible healthcare roles and delivering in-person service in an eligible community.

How much can be forgiven (over up to 5 years):

Nurses / Nurse Practitioners (up to $30,000)

• Year 1: $4,000
• Year 2: $5,000
• Year 3: $6,000
• Year 4: $7,000
• Year 5: $8,000

Family Doctors / Family Medicine Residents (up to $60,000)

• Year 1: $8,000
• Year 2: $10,000
• Year 3: $12,000
• Year 4: $14,000
• Year 5: $16,000

The rules people miss (and lose money over):

• It only reduces the federal (Canada) portion. Your Ontario portion doesn’t disappear.
• You must complete a full service year and apply after that year.
• Your loan must be in good standing.
• You generally have 90 days after finishing each service year to apply.
• Your 5 years don’t have to be consecutive (life happens).

If you’re trying to check your OSAP file or messages first, this OSAP login guide helps with password resets and account lockouts.

The eligible-community rule changed (and the tool may lag)

As of November 6, 2024, an eligible community can be a rural area or a population centre with 30,000 or fewer people. The postal-code lookup tool is being updated and may not always be accurate, so if your job decision depends on it, calling NSLSC to confirm is worth it.

A quiet but important 2025 change: sign-in and the application flow

If you haven’t logged in lately, NSLSC moved to My Service Canada Account sign-in in 2025. They also simplified the online flow for Canada Student Loan Forgiveness in late 2025, which makes applying less of a paperwork maze.

Real example: Maya’s “I thought Ontario would wipe this” moment

Maya finishes school owing $45,000 in OSAP:

• $28,000 Canada portion
• $17,000 Ontario portion

She takes a nurse practitioner job in an eligible northern community.

Over three years, she receives $15,000 of forgiveness on the Canada side ($4k + $5k + $6k). That’s a huge reduction, and it changes her repayment timeline.

But here’s the part she didn’t expect: the Ontario portion kept charging interest. Her “forgiveness win” was real—but it didn’t remove the need for a plan to tackle the Ontario balance (extra payments when she could, and RAP when her income dipped).

The lesson: forgiveness can take a big bite out of your OSAP, but you still need to actively manage what it doesn’t cover.

If payments are the problem: RAP is the safety net (not a failure)

RAP (Repayment Assistance Plan) exists for the exact moment when your payment and your income don’t match.

What it can do:

• lower your required monthly payment based on income + family size
• sometimes drop your payment to $0 for 6 months
• keep you in good standing so you avoid default/collections
• ensure you’re not stuck paying forever (repayment period caps exist)

One detail that helps when you’re panicking: NSLSC states no payments are due while your RAP application is being processed.

RAP $0-payment thresholds (monthly gross family income)

If your household income is below these thresholds, you may qualify for no payments for a 6-month period:

Family size	Monthly gross income threshold
1	$3,788
2	$4,444
3	$5,444
4	$6,283
5	$7,026
6	$7,696
7+	$8,313

Even if you’re above the thresholds, you may still qualify for reduced payments.

How RAP usually feels in real life: it’s a relief, then it’s annoying. Relief because the payment becomes manageable. Annoying because you have to re-apply every 6 months. Put a reminder in your phone the day you get approved.

If you’re behind or in default: rehabilitation is the way back

Default can feel like “game over.” It isn’t. The practical goal is to get back into good standing so you can use the normal tools again (like RAP).

Ontario has a rehabilitation program for defaulted Ontario loans (or the Ontario portion of an integrated loan). It typically involves agreeing to a short plan (often a few months) and making the required payments, including outstanding interest. Once completed, the loan can be transferred back to NSLSC in good standing.

Common way people fail rehab: picking a payment amount that only works in a “perfect month,” then missing payments when life happens. Choose the plan you can actually finish.

A “forgiveness” you might not realize you already got: OSOG

If you received OSAP loans for the 2016–17 academic year, the Ontario Student Opportunity Grant (OSOG) may have reduced your repayable debt for that year by capping it (for eligible students):

• $7,500 max for a two-term academic year
• $11,250 max for a three-term academic year

You don’t get OSOG as cash—it’s applied to pay down the Ontario portion of your integrated loan. Many borrowers miss it because it shows up in account history, not in your bank account.

Last resort: insolvency options (strict rules, real consequences)

Canada’s Bankruptcy and Insolvency Act generally blocks government student loans from being discharged if you file bankruptcy within 7 years of when you “ceased to be a student.” There’s also a 5-year hardship route, but it requires a court application and serious proof you acted in good faith and still can’t repay.

In 2025, the Supreme Court clarified how the “ceased to be a student” date is determined (this matters for the 7-year clock). This is exactly why you should speak with a Licensed Insolvency Trustee before making any move.

The mistakes that cost people the most money

• Missing the 90-day forgiveness application window after a service year
• Assuming forgiveness covers the Ontario portion (it doesn’t)
• Letting RAP lapse because you forgot to reapply
• Paying a third party to “erase OSAP” or giving anyone your NSLSC password
• Ignoring the interest split and wondering why the balance barely shrinks

What to do today (pick one)

• If you’re a nurse/NP or family doctor/resident: confirm your community eligibility before you commit, and start a simple documentation folder now (offer letter, start date, hours, leave records).
• If you can’t afford your payment: apply for RAP and gather income/family-size documents. Then set a reminder to reapply in ~5.5 months.
• If you’re in default: ask about Ontario rehabilitation and get the plan details clearly. After you’re back in good standing, use RAP to stay there.
• If you’re 7+ years out and overwhelmed: book a consult with a Licensed Insolvency Trustee and bring your full loan history.

If you’re switching careers entirely, here’s what it looks like to study real estate in Ontario (time, cost, licensing steps):

FAQs

Sources:

Government of Canada — Canada Student Loan Forgiveness

Government of Ontario (OSAP) — Loan repayment process