Major OSAP Reforms Announced by Ontario Premier Doug Ford
Ontario's student financial aid program, OSAP, is poised for its most substantial transformation since 2019, with sweeping changes set to take effect this fall. Premier Doug Ford's government has unveiled a plan that will fundamentally alter how assistance is distributed, shifting the balance toward repayable loans while capping non-repayable grants.
Key Changes to Student Aid Structure
Beginning in the fall of 2026, the Ontario-funded portion of OSAP will implement a new cap: grants will be limited to no more than 25 percent of total aid, with at least 75 percent provided as loans. This marks a dramatic departure from the current system, where students with significant financial need could receive up to 85 percent of their assistance as grants. For example, under the old model, a student receiving $10,000 in OSAP funding might have gotten $8,500 as a grant, but now that same amount would include a maximum of $2,500 in grants, with $7,500 or more as a loan.
Additionally, students attending private career colleges will be ineligible for any grants under the revised OSAP framework. The government has also announced the end of a seven-year tuition freeze, permitting institutions to raise tuition by up to two percent annually for three years. After this period, increases will be capped at either two percent or the rate of inflation, whichever is lower.
Financial Implications and Support Measures
According to provincial estimates, the tuition adjustments will translate to an average daily increase of $0.18 for college students and $0.47 for university students. To mitigate the impact on low-income individuals, the Student Access Guarantee will remain in place, ensuring that tuition, books, and mandatory fees are covered if OSAP funding proves insufficient. Eligibility criteria, including factors like family income and size, will not change, and loan repayment will still commence six months after a student leaves school.
Rationale Behind the OSAP Overhaul
Premier Doug Ford has justified these reforms by citing concerns over the misuse of OSAP funds, referencing "nightmare stories" during a recent press conference. He implied that some recipients have been spending aid on luxury items such as "fancy watches and cologne," and stated that the changes aim to enhance accountability for public funding. The OSAP revisions are part of a broader $6.4 billion investment over four years designed to stabilize Ontario's postsecondary sector. This funding package includes commitments to create 70,000 additional in-demand seats and increase per-student funding for colleges and universities.
The announcement has sparked discussions about the long-term sustainability of student aid and the potential burden of increased debt for graduates. As these changes roll out, students and educators alike will be closely monitoring their effects on accessibility and financial planning in higher education.
