OSAP CHANGES 2026
Change To Grant - Loan Ratio
In February 2026, the Ministry introduced major changes to OSAP, effective Fall 2026:
MORE LOANS, LESS GRANTS
Significantly reduce grant funding from a maximum of 85% to 25%, while decreasing student loans to at least 75%
HEARD
MAKE YOUR VOICE
Are you looking for ways to have your say on the 2026 OSAP changes? Want to make your voice count at the Ontario Legislature?
Looking to connect with your local MPPs to raise your concerns?
Join our efforts and help us spread the word!
What Is OSAP?
The Ontario Student Assistance Program (OSAP) is a federally and provincially (60 federal/40 provincial) funded program that provides needs-based assistance to full-time and part-time students attending an approved post-secondary institution, usually at a university, college, or private career college.
Provincial financial assistance to students is provided through loans and non-repayable grants.
Eligibility is open to Ontarians who are Canadian citizens, permanent residents, or “protected persons” (for example, those with formal refugee status).
Since OSAP is a needs-based program, financial aid for eligible students is calculated using a formula that compares your educational costs with expected financial contributions as the stated purpose of the program is to supplement, not replace student resources.
HISTORICAL
CONTEXT
1966
In 1966, the Province of Ontario Student Award Program (POSAP) was launched in conjunction with the then-new Canada Student Loans Program to provide non-repayable provincial grants.
1967
In 1967, student-led protests led to the removal of questions about parental debts, insurance policies, and mortgages, allowing students to receive some bursaries and grants from other sources without seeing their grants reduced. Additionally, allowances were increased for married students, and students were considered independent after completing three years of studies.
The early 2000s saw numerous government initiatives toward the post-secondary system, including tuition freezes, the introduction of new up-front grants, and increased OSAP funding.
Early 2000s
2010
In 2010, the Ontario government introduced a six-month interest-free grace period for OSAP repayments. An additional six-month interest-free grace period was later announced for students who for graduates who work in the not-for-profit sector.
From 2016-2018, the Ministry of Colleges and Universities (MCU) conducted a major overhaul of the existing financial aid programs, including redirecting 100 per cent of the funding from the Ontario Tuition Grant, Ontario Student Opportunity Grant, Ontario Access Grants and other grants offered by OSAP into a single new Ontario Student Grant. The new grants covered full tuition for students from families with incomes under $50,000 (or $30,000 for independent students) regardless of assessed need, resulting in the historical increase of non-repayable grants up to 98% from 60% the year prior.
2016-2018
2019
From 2019 onwards, the Ontario government made significant changes to the program once more. This include:
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Eliminating six-month interest-free grace period;
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Increasing parental and student contributions;
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Changing the definition of independent students;
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Removing the non-need based components of the Ontario Student Grant;
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Requiring that at least 10% of assessed needs be provided as a loan for low-income households under $50,000;
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Requiring that at least 50% of assessed needs be provided as loan for those in second-entry or out-of-province programs.
In February 2026, the Ministry of Colleges, Universities, Research Excellence and Security announced the latest changes to OSAP, including increasing the loans portion to 75% of the aid package, while reducing non-payable grants to only 25% from its current level of 85% for this upcoming academic year.
Feb 2026
INCREASE STUDENT DEBTS
It is estimated that the change in the ratio will shift about $3,500 from grants to loans for low-income students in Ontario next year. In addition to the upcoming cuts federal grants, students will potentially see their loan balances increase by an extra $4,700 in 2026-27
INCOME THRESHOLDS ELIGIBLE FOR GRANTS
Households earning above $75,000 per year and single independent students earning over $55,000 per year will no longer qualify for provincial needs-based grant funding.
Other Key Changes
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Removing the debt cap of $7,500 per item.
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Private college students will not be eligible to receive grants.
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Domestic tuition is set to increase by up to 2% for the next three years, then by up to 2% or the three-year average inflation rate, whichever is lower, in the years following.
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Increase Student Access Guarantee (SAG) to cover tuition, books and mandatory fees for low-income students.
What Does This Mean For Ontario Students?
Our Ask
1
REVERSE THE GRANT-TO-LOAN RATIO.
2
ELIMINATE INTEREST ON STUDENT LOANS.
3
REINSTATE SIX-MONTH INTEREST-FREE GRACE PERIOD.
4
INCREASE OSAP LIVING ALLOWANCE FOR SUPPORTING STUDENTS' FOOD EXPENSES.
Advocacy
SCHOLARSHIP
Ontario Student Voices is pleased to announce the Advocacy Scholarship, awarding 𝐭𝐡𝐫𝐞𝐞 (𝟑) 𝐬𝐜𝐡𝐨𝐥𝐚𝐫𝐬𝐡𝐢𝐩𝐬 𝐨𝐟 $𝟏,𝟎𝟎𝟎 𝐞𝐚𝐜𝐡 to students who have demonstrated meaningful advocacy.
📅 𝐀𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐃𝐞𝐚𝐝𝐥𝐢𝐧𝐞: March 31
📧 𝐒𝐮𝐛𝐦𝐢𝐭 𝐚𝐩𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐭𝐨: lynn.courville@ontariostudentvoices.ca
🎓 Eligibility: Open to students at any Ontario Student Voices member school
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Resources & Further Reading
