What we know about the OSAP changes announced by Doug Ford

Ontario’s student financial aid system is set to undergo its most significant changes since 2019. Beginning this fall, the provincial portion of aid will shift toward a higher share of loans, with grants capped at 25 per cent. The province announced the changes last week alongside a $6.4 billion postsecondary funding commitment, describing the reforms as a step toward long-term sustainability.

Beginning in the fall of 2026, the Ontario-funded portion of OSAP will provide no more than 25 per cent of aid as grants, and at least 75 per cent as loans. Students attending private career colleges will receive no grants.

The province will also end its seven-year tuition freeze, allowing institutions to increase tuition by up to two per cent annually for three years, after which increases will be capped at either two per cent or the rate of inflation, whichever is lower.

The government estimates that this change will add $0.18 per day for college students and $0.47 per day for university students. For low-income students, added costs will be offset through the Student Access Guarantee, which ensures tuition, books and mandatory fees are covered if OSAP funding falls short.

Under the current model, students with greater financial need can receive up to 85 per cent of their assistance as non-repayable grants. The revised structure shifts more of that aid toward loans, increasing the amount students may need to repay after graduation.

For example, a student who previously received $10,000 in OSAP funding could have received up to $8,500 as a non-repayable grant. Under the new structure, that same level of funding would include a maximum of $2,500 in grants, with at least $7,500 issued as a repayable loan.

Eligibility criteria, including family income, assets and family size will remain the same, and repayment will continue to begin six months after a student leaves school.

Ontario Premier Doug Ford has linked the reforms to concerns about misuse of OSAP funds, describing “nightmare stories” in a press conference Tuesday , and implying that some recipients are spending aid on items such as “fancy watches and cologne.” He has said the changes are intended to strengthen accountability for public funding.

The OSAP changes are part of a broader $6.4-billion investment over four years, intended to stabilize Ontario’s postsecondary sector. The funding package includes a commitment to fund 70,000 more in-demand seats and increase per-student funding for colleges and universities.

Students beginning or continuing their studies in the fall of 2026 are likely to see a larger share of provincial aid issued as loans. At the same time, total aid levels are expected to remain relatively stable, and repayment supports will continue to cap payments based on income after graduation.

Student organizations have expressed concern that the shift toward loans could affect affordability and access. Ontario Undergraduate Student Alliance president Sayak Sneddon-Ghosal said in a statement last week that “while this commitment is a significant win for the sector, we are concerned about the continued shift within OSAP from grants to loans, particularly how it risks disproportionately impacting students from various socioeconomic backgrounds.”

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