Updated July 2026. Ontario’s Colleges and Universities Minister announced a major overhaul of post-secondary funding, tuition rules, and OSAP starting in the 2026-2027 academic year. Here’s what’s actually changing, and what it does and doesn’t mean if you’re an international student or planning a study permit application.
OSAP: Grants Shrink, Loans Grow
The province is restructuring how OSAP financial aid is split between grants and loans:
- Currently: up to 85% can be non-repayable grants, minimum 15% loans
- Starting 2026-2027: maximum 25% grants, minimum 75% loans
Private career college students face a steeper change: they’ll no longer receive any OSAP grants at all — all provincial aid for that group becomes loan-only.
Tuition Is Going Up
Ontario’s tuition freeze ends. Public colleges and universities can raise tuition by up to 2% per year for the next three years; after that, increases are capped at either 2% or the three-year rolling average of inflation, whichever is lower.
New Funding, and a Support Measure to Offset the Changes
The province is providing $6.4 billion in funding over four years, raising annual operating funding to roughly $7 billion. To help offset higher tuition and reduced grants, Ontario is also expanding the Student Access Guarantee — a program that provides additional institutional support to low-income students when OSAP doesn’t fully cover tuition, books, and mandatory fees.
Why the Province Says This Is Necessary
Ontario officials point to financial strain across the post-secondary sector, driven partly by reduced international student enrollment following IRCC’s 2024 federal cap on study permits, alongside government funding that hasn’t kept pace with institutional costs. Opposition parties and student groups have pushed back, arguing the changes will increase student debt and reduce affordability.
What This Means If You’re an International Student
OSAP itself mainly supports domestic students, but these funding shifts can matter indirectly:
- Institutions under financial pressure may adjust program costs, including international tuition
- Tuition increases can affect the proof-of-funds calculation required for your study permit
- Shifting domestic enrollment patterns could affect program availability
Before applying, check your institution’s updated tuition, IRCC’s current study permit requirements, and the realistic cost of living in your intended city.
Does This Affect Immigration Pathways?
No — these are provincial funding and tuition changes, not immigration rule changes. The Post-Graduation Work Permit, Express Entry, and Provincial Nominee Programs remain governed entirely by federal rules and are unaffected by this announcement. Higher tuition and debt load can indirectly affect your financial planning as you move toward PR, but they don’t change program eligibility.
Sources: CBC News; Ontario.ca, OSAP program information.
