How Ontario’s New OSAP Rules Will Affect You
Ontario Announces Major Education Changes
On February 12, 2026, the Government of Ontario announced major reforms to postsecondary education funding. As a result, students across the province will face important financial changes in the 2026–2027 academic year.
Specifically, these updates will change:
- How OSAP divides grants and loans
- How much tuition institutions can charge
- How students plan their finances
Therefore, current and future students should prepare early.
OSAP Will Shift Strongly Toward Loans
First and foremost, the government will dramatically change the grant-to-loan ratio in OSAP.
Current System
Right now:
- OSAP can provide up to 85% as non-repayable grants.
- Students repay at least 15% as loans.
Starting Fall 2026
Beginning in Fall 2026:
- OSAP will limit grants to a maximum of 25%.
- Students will repay at least 75% as loans.
In other words, the program will almost reverse the structure.
For example, if a student receives $10,000:
- Previously, they might have kept $8,500 as a grant.
- Under the new rules, they may keep only $2,500 and repay $7,500.
Although the total funding may stay similar, students will carry much more debt after graduation.
Private Career College Students Will Lose Grant Access
In addition, the province will remove OSAP grants for private career college students.
Starting in Fall 2026:
- The government will provide 0% grants.
- Students will receive 100% of their aid as loans.
Consequently, these students must actively search for scholarships, external grants, or alternative funding options.
Colleges and Universities Can Raise Tuition Again
Meanwhile, the province will end its seven-year tuition freeze.
Since 2019, institutions have kept tuition at frozen levels. However, beginning in Fall 2026, colleges and universities can increase tuition by up to 2% per year for three years.
After that period, institutions must limit increases to 2% or the three-year average inflation rate, whichever is lower.
According to provincial estimates:
- College students will pay about $66 more per year.
- University students will pay around $172 more per year.
Although these increases seem modest, costs will rise gradually over time.
The Province Will Invest $6.4 Billion in Institutions
At the same time, the Government of Ontario will invest $6.4 billion in colleges and universities over four years.
This funding will:
Create 70,000 New Seats
Institutions will expand programs in healthcare, skilled trades, technology, and manufacturing.
Increase Per-Student Funding
The province will raise funding for full-time students by 6%.
It will also increase part-time college funding by 30%.
Support Underserved Institutions
The government will direct extra funds to rural, northern, French-language, and Indigenous institutions.
As a result, colleges and universities can improve facilities, hire staff, and expand high-demand programs.
Institutions Will Strengthen the Student Access Guarantee (SAG)
To address affordability concerns, the province will work with institutions to strengthen the Student Access Guarantee (SAG).
Under this program:
- Colleges and universities will step in if OSAP does not fully cover tuition and required costs for low-income students.
However, institutions and the province still need to finalize the details. Therefore, students should contact their financial aid offices in 2026 for updated information.
What This Means for Your OSAP Application
Importantly, OSAP will still assess students based on:
- Family income
- Tuition costs
- Course load
- Financial resources
However, the program will distribute aid differently.
As a result:
- Many students may qualify for similar total funding.
- Nevertheless, they will repay a much larger portion.
The province will release the updated 2026–2027 OSAP application in Spring 2026.
Students Must Prepare for Higher Loan Repayment
Because loans will make up a larger share of funding, students must understand repayment rules.
While students study full-time, OSAP does not charge interest. Therefore, debt will not grow during enrollment.
After graduation, students receive a six-month grace period before repayment begins.
If graduates struggle financially, they can apply for the Repayment Assistance Plan (RAP), which adjusts monthly payments based on income.
On the other hand, students who ignore repayments may face serious financial consequences, especially since the province has strengthened collection measures.
Leaders and Organizations React
Reactions remain divided.
For example, the Ontario Undergraduate Students Alliance criticized the sharp increase in loans. Similarly, the Ontario Public Service Employees Union argued that institutions needed help much earlier.
Meanwhile, Marit Stiles warned that higher student debt could harm young people’s futures.
In contrast, many colleges and universities welcomed the funding increase and highlighted its long-term economic benefits.
Timeline for Students
Spring 2026
The province will open the updated OSAP application. Students will see the new loan-heavy funding structure.
Fall 2026
All changes will take effect. Institutions can raise tuition. OSAP will follow the new grant-to-loan ratio.
2026–2029
Institutions can increase tuition by up to 2% annually.
2029 and Beyond
The province will continue to cap tuition increases at 2% or inflation, whichever is lower.
Final Takeaway
Overall, Ontario’s postsecondary system is entering a major transition.
On one hand, the province will strengthen institutions with historic funding and expand program capacity. On the other hand, students will depend far more on repayable loans.
Therefore, students should plan finances carefully, apply early for OSAP, and actively search for scholarships.
Ultimately, while institutions may grow stronger, students must prepare for higher long-term debt.
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