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Ontario students fear higher debt after OSAP grant cuts, tuition freeze lifted

Ontario students fear higher debt after OSAP grant cuts, tuition freeze lifted

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Post-secondary students in Ontario are warning they could graduate with more debt after the province moved to sharply reduce the grant portion of OSAP while also ending a long-standing tuition freeze.

 

Under the changes, the maximum share of OSAP funding delivered as non-repayable grants will drop from about 85% to a cap of 25% starting in Fall 2026, with the remainder delivered as repayable loans.

 

At the same time, universities and colleges will be allowed to raise tuition by up to 2% per year for the next three years, with later increases capped at either 2% or the three-year average inflation rate, whichever is lower, according to coverage of the policy.

 

Student leaders say the shift will make education less accessible during a cost-of-living crunch. The Canadian Press quoted representatives from the University of Ottawa student union and the University of Windsor students’ alliance as warning that replacing grants with larger loans will affect students well beyond graduation.

 

The government argues the redesign is needed to keep OSAP sustainable as demand rises. Colleges and Universities Minister Nolan Quinn said the program’s growth was becoming unsustainable and that the changes are meant to preserve access for future generations.