Toronto 
The Ontario government is lifting its tuition freeze and reshaping student financial aid as part of a broader $6.4-billion plan to stabilize the postsecondary sector.
The changes, announced by Colleges and Universities Minister Nolan Quinn, take effect in fall 2026 and are tied to a new long-term funding model. Finance Minister Peter Bethlenfalvy said the move is meant to keep the system financially sustainable while preparing students for in-demand careers.
Here’s what will change for students:
Tuition framework
- Colleges and universities can raise tuition by up to 2 per cent per year for three years.
- After that, annual increases will be capped at 2 per cent or the three-year average rate of inflation, whichever is lower.
- The province says this equals about $0.18 more per day for college students and $0.47 more per day for university students on average.
- Low-income students will see the increase covered through an enhanced Student Access Guarantee (SAG).
OSAP overhaul
The Ontario Student Assistance Program (OSAP) helps students cover college or university costs through grants and loans. Grants do not need to be repaid, while loans must be paid back after finishing school. When students apply, they’re automatically assessed for both, with the option to decline the loan after approval.
- Students will be eligible for a maximum of 25 per cent of OSAP funding as grants.
- At least 75 per cent will be provided as loans. Currently, OSAP can provide up to 85 per cent as grants and as little as 15 per cent as loans.
- Grants will no longer be available to students attending private career colleges.
- The province says the OSAP adjustments bring Ontario more in line with federal government.
The broader funding model will add $6.4 billion to the sector over four years, increase annual operating funding to $7 billion and support 70,000 additional seats in high-demand programs.
