Yes, you can apply for OSAP while on your Co-Op work term. You would need to submit an OSAP application and ensure that you have secured your co-op/internship placement. The Financial Aid & Awards Office will verify this information with the Co-Op Office.
If you are not applying for Full-Time OSAP, but wish to have your previous loans remain interest free, you must complete a Continuation of Interest-Free Status application and submit your Co-Op Confirmation of Employment form to the Financial Aid Office (you can email your Co-Op Advisor to request this document). To apply for interest-free status go to the OSAP website and apply through your account online.