Ontario tuition and financial aid changes raise costs for some students

Ontario will lift its freeze on domestic tuition, allowing up to 2% annual increases, and rework OSAP to provide more aid as loans and fewer grants, which could raise debt for the lowest-income students.

Ontario's government announced a package of changes on Feb. 12 that combines a funding boost for postsecondary institutions with an end to a long-standing tuition freeze. The plan includes more than $6 billion in funding over four years and allows domestic tuition to rise by up to 2 per cent a year for the next three academic years, then by the lower of 2 per cent or average inflation. The government also said it will restructure the Ontario Student Assistance Program (OSAP) so that most aid is delivered as loans rather than grants. Key facts: - The government announced a $6-billion-plus funding increase and will allow domestic tuition increases capped at 2% per year for the next three academic years, then tied to inflation or 2% thereafter. - OSAP will be rebalanced so grants are capped at 25% of provincial funding (down from a previous maximum of 85%), with a larger share of assistance provided as repayable loans. - Analysts and a higher-education consultant reported that students eligible for maximum assistance could face roughly an additional $3,500 a year in loans; government spokespeople said the changes are intended to preserve OSAP for future students. Summary: The changes are expected to produce modest tuition rises for most students but increase loan burdens for those who previously relied heavily on grants. The new tuition caps and OSAP rules apply over the coming academic years as described above, and the government has framed the package as a measure to maintain OSAP's long-term viability. Undetermined at this time.