Ontario Slashes OSAP Grants, Shifting Burden to Student Loans: What Grant Seekers Need to Know

Hook: Ontario OSAP Grants Slashed, Students Face New Funding Reality

On February 12, 2026, the Ontario government announced a major overhaul of post-secondary student support: slashing the grant portion of the Ontario Student Assistance Program (OSAP) from 85% to just 25%, with the remaining 75% shifted to loans that must be repaid. Simultaneously, the province ended a five-year tuition freeze, permitting annual tuition increases of up to 2% over the next three years. For students, especially those from lower- and middle-income families, this represents a seismic change in how higher education is funded—and who bears the cost.

Context: Why the OSAP Cut Matters

For years, OSAP served as a lifeline, allocating up to 85% of student aid as non-repayable grants for need-based applicants. In practical terms, a student with $20,000 in OSAP support could expect $17,000 as grants. As of September 2026, that grant portion drops to just $5,000, with the remaining $15,000 as loans. According to Statistics Canada, the average Ontario bachelor's graduate already carries $30,800 in student debt (2020 data), a figure now set to rise.

The Ford government justified these changes as a response to ballooning costs, which rose from $1.7 billion in OSAP grants in 2024–25 to $2.7 billion in 2025–26. The increase was partly due to higher program uptake and adjustments following federal policy changes, such as ineligibility for grants among private career college students. At the same time, the province committed $6.4 billion in new funding over four years and increased direct institutional operating grants to $7 billion, as detailed in their official announcement.

The broader context is sobering: Ontario universities and colleges suffered severely during the tuition freeze, compounded by a 49% cut in federal study permits for international students, which slashed a key revenue source. While these changes aim to stabilize institutional finances, they're forcing students to shoulder more of the load.

Impact: How Grant Seekers Are Affected

For Students and Families

If you're a student relying on OSAP, be prepared to see a drastic reduction in non-repayable financial aid. The change means you'll finish your studies with significantly more debt, and repayments will begin just six months after graduation. For many, this could mean the difference between enrolling—or staying—in post-secondary education, especially as tuition now begins to rise (up to 2% per year for at least three years).

Students like Jolie Malik and Ekram Yimer, quoted in The Eyeopener, expressed fears about being forced to leave school and concerns over being able to finish their degrees at all. For students with disabilities or those unable to work during their studies, the risks are even higher.

Student organizations, universities, and opposition parties warn of declining access for low-income families and rising inequality. University of Toronto professor Glen Jones called the policy "regressive," noting, "the wealthiest families will only spend a couple hundred bucks more, while lower-income individuals will pay several thousand dollars more."

For Grant Seekers: Alternative Funding Sources

With the grant portion of OSAP so sharply reduced, students must proactively seek out alternative funding, such as:

• Institutional scholarships and bursaries: Many universities are already signaling that they'll look for ways to increase need-based support within their own budgets.
• Federal student loans and grants: Although federal grants have their own eligibility rules, these remain an important supplement—see Government of Canada student aid.
• Private scholarships: Foundations, nonprofits, and service organizations often offer targeted awards (start with your school's financial aid office or platforms like ScholarshipsCanada).
• Part-time work or co-op placements: While not a direct substitute for grants, many students will need to supplement with employment.

Action: What Should Students and Grant Seekers Do Now?

If you're a current or prospective student in Ontario:

1. Immediately review your OSAP eligibility and estimate your new loan/grant mix for 2026-27 using the OSAP estimator tool when updated.
2. Contact your school's financial aid office to learn about expanded bursary and scholarship programs, which many institutions are ramping up in response.
3. Speak with your student union or advocacy organizations (e.g., OUSA, CFS) if you want to join lobbying or protest efforts.
4. Prepare a financial plan for increased debt—know your options for repayment deferral and interest relief, especially considering the six-month grace period post-graduation.
5. Search and apply for external awards early, as competition will rise.

Outlook: What Comes Next?

Expect continued pressure on the provincial government from students, universities, and opposition parties to either further increase institutional funding or reconsider the OSAP changes. Keep a close eye on new scholarship announcements, university efforts to fill the funding gap, and any federal-provincial negotiations about student financial support. With affordability now a front-line political issue in Ontario, further changes—positive or negative—are likely.

Granted AI continues to monitor grant policy changes and helps students, nonprofits, and researchers find alternative sources of funding in challenging times.