Social Policy in Ontario

Ontario lifts tuition freeze, unveils OSAP reforms as it adds billions to university and college funding

Posted on February 12, 2026 in Education Delivery System

Source: TheStar.com — Authors: Kristin Rushowy

TheStar.com – News/Ontario
Feb. 12, 2026.   By Kristin Rushowy, Senior Writer

Ontario is overhauling OSAP, so that financial aid will be mainly loans with far fewer non-repayable grants.

The province is pouring $6.4 billion into colleges and universities over the next four years, and also lifting its tuition freeze, allowing small increases in the coming years.

The announcement, made Thursday morning by post-secondary Minister Nolan Quinn and Finance Minister Peter Bethlenfalvy, comes after a year of consultations and will see a two per cent tuition bump each year for the next three years, with future increases tied to inflation or two per cent, whichever is less.

While that will still keep Ontario’s tuition rates among the lowest in the country — adding roughly $66 a year for college students and $170 a year for those in university — the province is also going to overhaul OSAP so that financial aid will be mainly loans with far fewer non-repayable grants.

And, following Ottawa’s lead, students who attend private colleges will no longer be eligible for grants.

Universities, colleges have called for more funding

Colleges and universities have been sounding the alarm over the need for more funding in light of the seven-year ban on tuition increases as well as massive cutbacks to the number of international students by the federal government at a time when schools face growing costs.

The loss of lucrative international students has hit schools with $2 billion in losses, and that’s expected to grow to $4.4 billion in 2026-27.

Ontario universities will take in a record number of first-year students this fall — but less tuition money. Here’s why

Schools have already cut programs and staff — 8,000 workers lost in colleges alone — while warning there would not be enough spots for students in their preferred programs.

Provincial post-secondary funding, currently at about $5.4 billion, will hit $7 billion in 2026 as the additional funding is phased in over the next four years.

“Through these changes … our government is not only ensuring the sustainability of our colleges, universities and Indigenous Institutes, but also preparing our graduates with the in-demand skills they need to meaningfully find good-paying, rewarding careers, while continuing to keep education accessible and keep costs down for students and their families,” Quinn said in a written statement.

OSAP changes coming

Bethlenfalvy said post-secondary education “is one of Ontario’s most important long-term investments — and (this) announcement helps ensure that investment remains strong, responsible and sustainable for years to come.”

The government says the OSAP changes are more aligned with student aid programs in other provinces, and that low-income students will not face any additional tuition fees.

Under OSAP changes, one-quarter of a student’s funding can be non-repayable grants and 75 per cent will be loans — an almost reversal of the current system, where up to 85 per cent can be grants and 15 per cent loans.

The new funding will add 70,000 spots to in-demand programs, and also provide additional support to small, rural and French-language and Indigenous schools.

Steve Orsini, president and CEO of the Council of Ontario Universities, said the additional funds “come at a critical time,” and Maureen Adamson, president and CEO of Colleges Ontario, called the announcement “a game changer.”

The post-secondary ministry has been conducting a funding review over the past year, and in pre-budget submissions universities had been asking for an immediate $1.2 billion in base funding and colleges $1.2 billion.

While the province had boosted post-secondary operating funds for 2025-26 to more than $5 billion — an eight per cent increase over the prior year — it remained the lowest per student of any province.

Quinn’s announcement includes an update to the university corridor funding model, which provides per-student grants based on a midpoint enrolment range, as well as higher funding based on program weights, meaning programs such as engineering will receive a bump as well.

Universities had worried that without a provincial lifeline the sector would face “deep financial challenges.”

https://www.thestar.com/news/ontario-lifts-tuition-freeze-unveils-osap-reforms-as-it-adds-billions-to-university-and-college/article_c0f69fa5-673e-4099-b8dd-8ff0daf30b2e.html?source=newsletter&utm_source=ts_nl&utm_medium=email&utm_email=0C810E7AE4E7C3CEB3816076F6F9881B&utm_campaign=bn_30492

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