Ontario to Raise Tuition and Reduce OSAP Grants Under New Post-Secondary Funding Model

The Government of Ontario has announced major changes to post-secondary funding that will affect tuition fees and student financial aid.

Under the new model, tuition will increase and the Ontario Student Assistance Program (OSAP) grant portion will be reduced starting in the 2026–2027 academic year.

For international students and future study permit applicants, this development is important. Tuition levels and available financial aid directly affect study costs and proof-of-funds requirements.

What Did the Ontario Government Announce?

The changes were announced by Ontario’s Colleges and Universities Minister as part of a new funding framework for public colleges and universities.

Official Ontario government website:
👉 https://www.ontario.ca

The province will provide $6.4 billion in funding over four years to support post-secondary institutions.

At the same time:

The tuition freeze will end
Schools can increase tuition by up to 2% per year for the next three years
After that, increases will be capped at either 2% or inflation (whichever is lower)

How Will Tuition Change?

Starting in the 2026–2027 academic year:

Public colleges and universities can raise tuition by up to 2% annually for three years
After three years, increases will be tied to inflation

The government stated that this increase is modest compared to other provinces. However, for students already facing high living costs, even a small increase may affect budgeting.

International tuition is not directly regulated in the same way as domestic tuition, but institutional financial pressure can influence overall fee structures.

If you are planning to apply for a Canadian study permit, you should monitor tuition updates from your chosen institution.

What Is Changing With OSAP?

The Ontario Student Assistance Program (OSAP) will undergo a significant structural change.

Official OSAP information:
👉 https://www.ontario.ca/page/osap-ontario-student-assistance-program

Currently:

Up to 85% of funding may be provided as grants (non-repayable)
Minimum 15% is provided as loans

Under the new model:

Maximum 25% will be grants
Minimum 75% will be loans

This shift means students will rely more heavily on repayable loans rather than non-repayable grants.

Private career college students will reportedly be eligible only for loans.

Why Is the Province Making These Changes?

The Ontario government stated that:

Post-secondary institutions are facing financial pressure
There has been reduced international student intake due to federal caps
Government funding levels have not kept pace with institutional costs

The federal international student cap was introduced by Immigration, Refugees and Citizenship Canada (IRCC) in 2024.

Official IRCC website:
👉 https://www.canada.ca/en/immigration-refugees-citizenship.html

Ontario officials argue that funding reform is necessary to stabilize the sector.

Critics, including opposition parties and student groups, argue that the changes will increase student debt and reduce affordability.

How Could This Affect International Students?

Although OSAP primarily supports domestic students, funding shifts can indirectly affect international applicants.

Consider the following:

Institutions under financial pressure may review program costs
Tuition increases may affect proof-of-funds calculations for study permits
Reduced grant support for domestic students may shift enrollment patterns

If you are applying for a study permit, always check:

Updated tuition from your institution
IRCC proof-of-funds requirements
Total cost of living in your intended city

Study permit requirements:
👉 https://www.canada.ca/en/immigration-refugees-citizenship/services/study-canada.html

Will This Impact Immigration Pathways?

For international students planning to transition to permanent residence:

Higher tuition may increase financial pressure
Increased student debt may affect post-graduation plans
Institutional stability remains important for program completion

However, these funding changes do not directly alter immigration programs such as:

Post-Graduation Work Permit (PGWP)
Express Entry
Provincial Nominee Programs

Those pathways remain governed by federal immigration rules.

Frequently Asked Questions

When will tuition increases begin?

Starting in the 2026–2027 academic year.

How much can tuition increase?

Up to 2% annually for three years, then capped at 2% or inflation.

Are OSAP grants being eliminated?

No, but the grant portion will be significantly reduced, with more funding provided as loans.

Does this affect international students directly?

OSAP is for eligible domestic students. However, tuition increases and institutional funding changes may indirectly affect international students.

Reality Check

Ontario’s new funding model aims to stabilize post-secondary institutions after years of financial pressure.

However:

Tuition will rise
Student debt levels may increase
Financial planning will become more important

If you are considering studying in Ontario, carefully review tuition, living costs, and immigration requirements before making a decision.

Policy changes in education often influence long-term immigration strategies. Planning early and budgeting realistically is essential.