What is interest-free status?
Interest begins to accrue on your student loan the day after your interest-free period ends. Payments are not mandatory until you've been out of school for 6 months. This is known as your non-repayment period.
If you return to school with a full-time student loan at a designated post-secondary institution before your grace period ends, the interest that had been building since your last study end-date will be eliminated and you will be in interest-free status for your new study term.
Being in interest-free status means you are in a 'funded term' whether you have new loans or not, so if you withdraw or have an unsuccessful term, it may affect your eligibility for further assistance.