Students react as OSAP grants are scaled back and tuition freeze ends

Post-secondary students in Ontario say the government’s decision to reduce financial assistance grants while lifting a long-standing tuition fee freeze will leave students who are already struggling financially with more debt.

The government announced it will decrease the proportion of grants offered through the Ontario Student Assistance Program from about 85 per cent of funding to a maximum of 25 per cent in the fall, making the rest student loans. It also lifted a seven-year tuition fee freeze to allow colleges and universities to raise fees by up to two per cent per year for the next three years.

OSAP grants cut: students say the change is devastating

Alex Stratas of the student union at the University of Ottawa says the changes in OSAP structure are devastating for students who rely on the program’s grants to pay for food, housing and tuition.

Stratas, a fourth-year political science and communications student, says she and many others couldn’t afford school without those grants because they don’t have enough financial support from family, and the move sends a message that the government doesn’t care to make students’ lives more affordable.

Husam Morra, president of the University of Windsor Students’ Alliance, says students are already facing an affordability crisis and the tuition fee and financial assistance program changes will make education less accessible. Morra warns students will graduate with larger loans and that the changes will impact life choices after school.

How the new OSAP grants formula will work

• Starting in September, OSAP grants will be capped at 25 per cent of assistance.
• A minimum of 75 per cent of funding will come through loans.
• Previously, students could receive up to 85 per cent of their assistance through grants and 15 per cent in loans.

Morra called the change “disappointing,” noting OSAP grants previously enabled many students to attend university without taking on large amounts of debt. The province says OSAP loans only start accruing interest after graduation and typically have lower rates, but students still fear the heavier debt burden.

Tuition freeze lift and sector funding

The government paired the OSAP changes with an additional $6.4 billion for the post-secondary sector over four years, following a funding formula review and pressure from cash-strapped colleges and universities.

Ontario institutions have faced low government funding, stagnant tuition levels since 2019, and sharply reduced numbers of international students — a key revenue source. Colleges in particular leaned on international student tuition after a prior 10 per cent fee cut and a freeze. Now, colleges and universities can raise domestic tuition by up to two per cent a year for three years.

Student groups call for reassessment and equity

The University of Windsor Students’ Alliance is calling on the provincial government to reassess OSAP changes and collaborate with student-led stakeholders to find a better approach. Morra said they welcome investments in institutions but want funds distributed equitably between schools.

He stressed that students will have to make difficult decisions because of the changes: where to live, what to study, even whether to enroll. Over the course of the previous tuition freeze, some programs received one-time hikes of seven per cent; those students now face additional increases.

What students say this means for accessibility

Students warn the combined effect of reduced OSAP grants and rising tuition will place much of the financial weight on them. Morra asked whether students will see improvements in the student experience or simply shoulder higher costs for the same services.

For many relying on grants to cover essentials, the shift toward loans threatens to make post-secondary education less affordable and more inequitable.

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