Last Updated On 12 February 2026, 4:49 PM EST (Toronto Time)
On February 12, 2026, the Ontario government announced one of the most significant overhauls to postsecondary education funding in the province’s history.
Effective Fall 2026, sweeping changes to the Ontario Student Assistance Program (OSAP), the end of a seven-year tuition freeze, and a massive $6.4 billion injection into colleges and universities will reshape how hundreds of thousands of Ontario students pay for and access higher education.
For students currently enrolled or planning to attend college or university in Ontario starting in the 2026-2027 academic year, these changes will directly impact how much financial aid they receive, what form that aid takes, and how much tuition they will pay.
The announcement, made on February 12, 2026, by Ontario’s Minister of Colleges, Universities, Research Excellence, and Security, Nolan Quinn, alongside Finance Minister Peter Bethlenfalvy, has already sparked intense debate among student groups, educators, and opposition politicians.
Here is everything you need to know about the new Ontario OSAP changes for 2026, including who will be affected, what the new grant-to-loan ratio means for your wallet, and how to prepare for the upcoming academic year.
Table of Contents
What Are the New OSAP Changes for 2026-2027?
The most significant change to OSAP for the 2026-2027 academic year is a dramatic shift in the ratio of grants to loans that students will receive as part of their financial aid package.
Under the current OSAP framework, eligible students can receive up to 85% of their provincial student aid in the form of non-repayable grants.
The remaining 15% (at minimum) comes in the form of loans that must be repaid after graduation.
Starting in Fall 2026, that ratio is being essentially reversed. Students will now receive a maximum of 25% of their OSAP funding as grants and a minimum of 75% as loans.
This represents one of the most dramatic shifts in OSAP’s funding structure in the program’s history.
In practical terms, this means a student who previously received $10,000 in OSAP funding might have gotten up to $8,500 as a grant they never had to repay.
Under the new structure, that same student would receive a maximum of $2,500 in grants, with at least $7,500 coming as a repayable loan.
The Ontario government has stated that students will continue to be assessed based on financial need, and the total amount of aid a student is eligible for will not change.
However, the composition of that aid — how much is a grant versus a loan — is shifting dramatically toward loans.
OSAP Changes for Private Career College Students
Students attending private career colleges in Ontario will face even steeper changes. Starting in the 2026-2027 academic year, private career college students will no longer be eligible for any OSAP grants whatsoever.
All of their provincial student aid will be delivered entirely in the form of repayable loans.
This change aligns with a similar decision made by the federal government regarding its own student support funding programs.
Students currently attending private career colleges in Ontario, or those planning to enroll in such institutions for the Fall 2026 semester, should plan their finances accordingly and explore alternative sources of grants and scholarships that may be available outside of the OSAP system.
Ontario Tuition Freeze Ending In Fall 2026
Alongside the OSAP restructuring, the Ontario government has announced the end of its seven-year tuition freeze for domestic students at publicly assisted colleges and universities.
The freeze, which was implemented after the Progressive Conservative party won the 2018 provincial election, initially included a 10% tuition cut followed by a multi-year freeze that kept tuition at 2019-2020 levels.
Starting in Fall 2026, publicly assisted colleges and universities will be allowed to raise tuition by up to 2% per year for three years.
After that initial three-year period, tuition fee increases will be capped at either 2% or the three-year average rate of inflation, whichever is lower.
The government has characterized this as one of the lowest rates of tuition increase of any province in Canada, including comparable jurisdictions such as British Columbia and Manitoba.
According to the province’s calculations, the average additional cost for students will be relatively modest:
- College students: An additional $0.18 per day on average (approximately $66 per year)
- University students: An additional $0.47 per day on average (approximately $172 per year)
The government has indicated that low-income students will have this additional tuition cost absorbed through an enhanced Student Access Guarantee (SAG), a program negotiated between the province and postsecondary institutions to ensure students of all financial backgrounds can access higher education.
Even with these increases, provincial tuition fees for Ontario students will remain below 2019 levels until 2030, according to the new framework.
For context, Statistics Canada data shows that Canadian undergraduate students in Ontario currently pay an average of approximately $8,514 per year in tuition, making Ontario the most expensive province for domestic undergraduate tuition in Canada.
The $6.4 Billion Postsecondary Funding Boost
While changes to OSAP and tuition have generated the most student concern, the centrepiece of the government’s announcement is a substantial increase in direct funding to postsecondary institutions.
The new long-term funding model will deliver an additional $6.4 billion into the postsecondary sector over four years, raising annual operating funding to $7 billion.
This represents a 30% increase in operating funding and, according to the government, is the highest level of postsecondary funding in Ontario’s history.
Key elements of the new funding model include:
- 70,000 new in-demand seats: Additional spaces in programs aligned with labour market demand, including healthcare, skilled trades, advanced manufacturing, and technology
- Increased per-student funding: Base per-student funding at colleges and universities will increase by 6% for full-time students and 30% for college part-time students
- Targeted support for underserved institutions: Dedicated additional funding for small, rural, northern, French-language, and Indigenous institutions
- Investment in expensive programs: Increased funding for programs that cost more for institutions to deliver, such as healthcare and skilled trades training
- Streamlined administration: Over 400 transfer payment agreements will be consolidated into 45 five-year Strategic Mandate Agreements, saving institutions time and administrative resources
Minister Quinn characterized postsecondary institutions as “the pipeline that builds our future workforce” and described the funding as essential to ensuring Ontario remains competitive in the global economy.
The Enhanced Student Access Guarantee (SAG)
To address concerns about affordability for the most financially vulnerable students, Ontario has announced it will negotiate an enhanced Student Access Guarantee (SAG) with postsecondary institutions.
The SAG is designed to provide additional financial support for tuition, books, and mandatory fees for low-income students in cases where OSAP funding does not fully cover these costs.
Under the enhanced SAG, institutions will be expected to ensure that students from all financial backgrounds can still access higher education despite the changes to OSAP’s grant-to-loan ratio and the tuition increases.
The specifics of the enhanced SAG will be determined through negotiations between the province and individual institutions.
Students who believe they may qualify for SAG support should contact their institution’s financial aid office once details of the program are finalized for the 2026-2027 academic year.
How Will the New OSAP Changes Affect Your Application?
The Ontario government has confirmed that OSAP will continue to assess students based on individual financial need.
The factors used to determine eligibility, including tuition costs, course load, family income, and other financial resources, will remain in place.
What is changing is the mix of provincial grants and loans within each student’s assessed amount.
The total financial support available to an individual student may remain similar, but a much larger portion of that support will now need to be repaid after graduation.
The specific details of how these changes will affect individual students’ assessed amounts will be available when the OSAP application for the 2026-2027 academic year is released in the spring of 2026.
Students planning to attend college or university in Fall 2026 should check the official OSAP website regularly for updates on application timelines and new program details.
Here is a summary of current OSAP application timelines:
- The 2025-2026 OSAP application is currently open for full-time students, part-time students, and micro-credential programs
- The 2024-2025 OSAP application remains open for full-time and part-time students and micro-credential programs
- The 2026-2027 OSAP application will be released in spring 2026 and will reflect the new grant-to-loan ratio
Students making their first OSAP application are encouraged to complete the OSAP information module, available through the official OSAP portal, which provides guidance on the application process, eligibility requirements, and documentation needed.
OSAP Loan Repayment: What Students Should Know
With a much larger proportion of OSAP funding now coming in the form of loans, understanding the repayment process is more important than ever for Ontario students.
OSAP loans have several features that distinguish them from standard consumer loans.
Students do not accumulate interest on their loans while they are enrolled in full-time studies.
The interest-free period provides students with breathing room during their education, allowing them to focus on their studies rather than worrying about growing debt.
Upon graduation (or upon leaving full-time studies), there is a six-month non-repayment period before loan payments begin.
While the Ontario portion of OSAP loans may begin accruing interest during this period, the rates are set below commercial lending rates.
Students who experience financial hardship after graduation can apply for the Repayment Assistance Plan (RAP), which adjusts monthly payments based on income and family size.
Students should also be aware that the Ontario government has been implementing enhanced collection tools for defaulted OSAP loans.
The Ministry of Finance began a phased implementation of Enhanced Collection Tools (ECTs) in 2025-2026 for defaulted provincial OSAP, micro-credential, and medical resident loans.
This means that defaulting on your OSAP loans can have serious financial consequences, making it all the more important to stay on top of repayment or seek assistance through RAP if needed.
What Students and Experts Are Saying
The reaction to these changes has been sharply divided, with institutions largely welcoming the funding increase while student groups and opposition politicians have sounded the alarm on the OSAP restructuring.
Sayak Sneddon-Ghosal, president of the Ontario Undergraduate Students Alliance, criticized the dramatic shift in the grant-to-loan ratio, arguing that an incremental change — similar to the gradual approach being taken with tuition increases — would have been more appropriate.
Bella Fischer, president of the College Student Alliance, warned that the OSAP changes will likely increase long-term student debt, particularly for middle and low-income learners.
On the institutional side, Maureen Adamson, President and CEO of Colleges Ontario, described the $6.4 billion funding announcement as “a game changer for the economic future of Ontario,” emphasizing that college graduates are essential workers across advanced manufacturing, construction, transportation, mining, energy, and healthcare.
Steve Orsini, President and CEO of the Council of Ontario Universities, called the funding announcement critical to ensuring Ontario’s universities can deliver the talent and innovation the province needs to remain competitive.
McMaster University president Susan Tighe praised the funding for empowering institutions to partner with industry and drive Ontario’s economic future.
First Nations Technical Institute president Suzanne Brant welcomed the prioritization of small, northern, and rural francophone colleges.
But not everyone was convinced. Liberal education critic John Fraser called the announcement “window dressing” that arrives too late, after schools have already been forced to cut crucial programs and shed nearly 10,000 staff members.
JP Hornick, president of the Ontario Public Service Employees Union (OPSEU), acknowledged the funding is welcome but characterized it as coming “too little too late” for institutions already strained “to the brink of collapse” by two decades of chronic underfunding.
Ontario NDP Leader Marit Stiles argued that the plan to raise tuition and cut OSAP grants will make it impossible for young people to build a future in Ontario, warning that graduating students buried in debt damages the province’s economic future.
What Happens Next: Timeline for Ontario Students
If you are a current or prospective postsecondary student in Ontario, here is a timeline of what to expect:
Spring 2026: The OSAP application for the 2026-2027 academic year will be released. This application will reflect the new grant-to-loan ratio.
Students will be able to see exactly how the changes affect their individual funding package.
Fall 2026: All changes take effect. The new tuition framework begins, allowing institutions to raise tuition by up to 2%.
The new OSAP grant-to-loan structure applies to all students receiving provincial financial aid.
The enhanced Student Access Guarantee takes effect for eligible low-income students.
2026-2029: Tuition increases are capped at 2% annually for three years.
The $6.4 billion in additional funding is distributed to institutions over this four-year period.
2029 and beyond: Tuition increases will be capped at 2% or the three-year average rate of inflation, whichever is lower.
The new long-term funding model for institutions continues.
Ontario’s postsecondary education landscape is undergoing its most significant transformation in years.
While the $6.4 billion in new institutional funding and the creation of 70,000 new in-demand seats are positive developments for the long-term health of the sector, the dramatic reduction in OSAP grants from up to 85% to a maximum of 25% will fundamentally change how students finance their education.
Students who are planning to attend college or university in Ontario for the 2026-2027 academic year should prepare for a financial aid package that is much more heavily weighted toward repayable loans.
Proactive financial planning, early OSAP application submission, thorough scholarship research, and a clear understanding of loan repayment obligations will be essential to navigating this new reality successfully.
For the most up-to-date information on OSAP changes, tuition frameworks, and available financial support, students should regularly visit the official OSAP website and connect with their institution’s financial aid office as details continue to be finalized in the coming months.
Frequently Asked Questions (FAQs) About OSAP
Will the federal portion of my student loans also change in 2026-2027?
The February 12, 2026, announcement applies only to the provincial (Ontario) portion of student aid. The federal Canada Student Loans and Canada Student Grants, administered through the Canada Student Financial Assistance Program, are governed separately by the federal government. However, interest on the federal portion of Canada Student Loans has been permanently eliminated as of April 1, 2023, which means only the Ontario portion of your loan will accrue interest after graduation.
Can I choose to take only the grant portion of my OSAP and decline the loan?
Yes, OSAP allows students to accept their grants while declining part or all of their loan entitlement. However, with grants now capped at 25% of your assessed need, the grant-only amount may not be sufficient to cover your tuition and expenses, which could affect your ability to enroll or maintain full-time status.
Do these OSAP changes apply to students studying outside Ontario?
Yes, if you are an Ontario resident receiving OSAP to attend an approved postsecondary institution outside of Ontario (including other Canadian provinces or the United States), the new provincial grant-to-loan ratio will apply to the Ontario portion of your student aid for the 2026-2027 academic year onward.
Is there a lifetime limit on how much OSAP funding I can receive?
Yes, OSAP provides a maximum of 340 weeks of funding for most students, 400 weeks for doctoral studies, and up to 520 weeks for students with disabilities. These lifetime limits remain unchanged under the new framework. If you are close to your lifetime limit, the new loan-heavy structure means any remaining weeks of eligibility will generate significantly more debt than they would have under the previous grant-heavy model.
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