Ontario Changes OSAP

Ontario has updated the Ontario Student Assistance Program (OSAP), and the biggest shift is clear: more support is coming as loans rather than grants. The policy has sparked strong reactions from students and families across the province.

Here is the direct breakdown.

More Loans, Less Grants

Under the new policy, grants are capped at 25% of a student’s aid package, while loans must make up at least 75%.

Previously, grants could cover up to about 85% of aid, with loans as low as 15%. While total aid eligibility may look similar on paper, a larger share now has to be repaid.

For many students, this means graduating with higher debt loads even if their upfront funding appears unchanged.

Tuition May Also Rise

At the same time, Ontario is ending its long tuition freeze. Colleges and universities will be allowed to increase tuition by up to 2% per year.

This combination is why the policy is drawing attention. Students may face both:

• more borrowing through OSAP

• gradual tuition increases

  
  

Even small annual tuition hikes can compound over a multi-year degree.

Why Students Are Pushing Back

Student groups and many families are concerned about three main issues:

1. First, more aid being delivered as loans increases long-term student debt.

2. Second, there is less non-repayable support available to lower- and middle-income students.

3. Third, the changes are arriving during a broader affordability challenge, with high housing and living costs already straining student budgets.

The provincial government says the previous model was not financially sustainable and argues the changes will help stabilize the post-secondary system. Officials have also suggested some grant money was not always used strictly for education costs.

The Bottom Line

OSAP is still available, and students will continue to receive need-based assistance.

However, the structure of that aid is shifting toward loans.

In practical terms, many students may need to borrow more and repay more after graduation, while tuition is also allowed to edge upward.