Table of Contents
1. What Changed With OSAP for 2026–27?
Ontario introduced changes to the provincial portion of OSAP for study periods beginning on or after August 1, 2026.
The changes are part of a broader update to Ontario’s postsecondary funding and tuition framework. The province announced $6.4 billion in additional postsecondary funding over four years, along with changes to tuition and student financial assistance.
For students, one of the most important changes is the shift toward providing more OSAP funding as loans rather than grants.
1.1 OSAP Grants vs. Loans: What Changed for 2026–27?
The 2026–27 OSAP structure depends on the type of institution you attend.
| Institution | Provincial OSAP treatment | Maximum weekly OSAP amount* |
| Public college or university in Ontario | Up to 25% of provincial OSAP funding may be provided as a grant, with at least 75% as a loan | Up to $530/week |
| Approved private postsecondary school in Ontario | More of the provincial funding is provided as a loan | Up to $530/week |
| Career college | Provincial OSAP funding is provided as a loan | Up to $530/week |
*These are maximum amounts. Your actual OSAP assessment depends on factors such as tuition, living costs, family income, family size, course load and other circumstances.
This means students should look beyond the words “grant” and “loan” and consider the complete financial picture:
- How much funding are you eligible to receive?
- How much of your tuition and living costs can that funding cover?
- How long is your program?
- How much will you need to borrow overall?
- What are your expected employment opportunities after graduation?
- How much could you reasonably repay once you begin working?
Access to a larger loan amount can also help an eligible student manage tuition, books, school-related expenses, and eligible living costs while completing a program. Ontario states that OSAP can help with these types of educational and living expenses.
The right decision therefore depends on the student’s individual financial situation and career goals — not simply whether the funding is labelled a grant or a loan.
Some students may still qualify for other forms of non-repayable assistance, depending on their circumstances and the rules of the specific federal grant or other funding program. For example, federal assistance continues to include grants for eligible students with disabilities and eligible students with dependants. The availability of a particular grant depends on the student’s eligibility, program, and institution.
1.3 When Do the 2026–27 OSAP Changes Take Effect?
The changes apply to study periods beginning on or after August 1, 2026.
The 2026–27 OSAP academic year runs from August 1, 2026 to July 31, 2027. The date your study period begins determines which OSAP academic-year rules apply.
If you are already enrolled in a program, do not assume that your original enrollment date automatically protects you from the new rules. Your individual study-period dates and OSAP assessment determine how the changes apply to you.
Example: How the New OSAP Funding Could Work
Consider a two-person Ontario family where one spouse has a low income and the other returns to school for a PSW program at A1 Global College.
- Program cost: Approximately $18,000
- OSAP approval: Approximately $25,000
- Provincial OSAP funding: Loan-based
- Amount remaining after tuition: Approximately $7,000
The $25,000 OSAP funding could cover the program cost, with the remaining amount helping with eligible living and education-related expenses while the student is in school.
Although the funding must be repaid, the family may decide that the loan is manageable because the student can complete a career-focused program in a relatively short period and return to the workforce.
2. Why Ontario Made These Changes
Ontario describes the changes as part of a broader effort to create a more sustainable postsecondary funding and OSAP system while continuing to make postsecondary education accessible.
The February 2026 announcement included $6.4 billion in additional postsecondary funding over four years and a plan to support approximately 70,000 additional in-demand student seats. The province also said the updated OSAP framework is intended to support the long-term sustainability of student financial assistance.
The OSAP changes should therefore be understood as part of a broader restructuring of student financial assistance, rather than as a change affecting career colleges alone.
There have also been significant changes to federal student financial assistance. Beginning in 2026–27, the federal government is generally restricting the Canada Student Grant for Full-Time Students at private for-profit institutions, subject to the applicable federal rules and exceptions. However, federal grants for students with disabilities and students with dependants remain available to eligible students.
This distinction is important because provincial OSAP changes and federal student-aid changes are separate components of the overall funding picture.
3. Who Is Affected by the 2026–27 OSAP Changes?
The impact depends on the student’s school, program, financial circumstances, and eligibility for different forms of assistance.
- Students at public colleges and universities: The provincial OSAP framework now provides up to 25% of eligible OSAP funding as grants, with at least 75% provided as loans.
- Students at approved private postsecondary schools: More of the provincial OSAP assistance is provided as loans under the new framework.
- Career college students: The provincial portion of OSAP is provided as a loan.
- Students with disabilities or dependants: Depending on their circumstances, they may qualify for additional federal grants that do not need to be repaid.
- Low-income students at eligible public institutions: The Student Access Guarantee may provide additional institutional financial assistance where applicable. Ontario’s current guidance describes SAG as a program for eligible students at publicly assisted colleges and universities.
Your actual financial-aid package depends on your circumstances.
4. What Has Not Changed With OSAP in 2026–27?
Although the funding mix has changed, several important features of OSAP remain.
- OSAP continues to assess financial need using factors such as educational costs, course load, personal and family financial circumstances, family size and dependants.
- Eligible students can use OSAP funding toward expenses such as tuition, books and equipment, school fees and, for full-time students, eligible living expenses.
- OSAP loans remain interest-free while you are in school under the applicable interest-free status.
- You generally have six months after graduating or leaving full-time studies before you begin repayment.
- You can decline the loan portion of an OSAP offer after your application is approved if you do not want to borrow.
- Registered Education Savings Plan (RESP) funds do not reduce the amount of OSAP you can receive, according to Ontario’s current OSAP guidance.
5. Who Is Eligible for OSAP in 2026–27?
The basic eligibility requirements remain important.
To generally qualify for OSAP, you must meet the applicable requirements, including being an Ontario resident under OSAP’s residency rules and being a Canadian citizen, permanent resident or protected person. You must also attend an approved school and approved program and meet the applicable academic and financial requirements.
Ontario residency requirement
For OSAP purposes, the residency rules generally require that the student or an expected contributor has lived in Ontario for at least 12 consecutive months before the beginning of the study period, subject to exceptions and specific rules in Ontario’s legislation.
Time spent in full-time postsecondary studies is generally excluded when calculating this 12-month residency period. There are also exceptions for certain students who have not lived in another Canadian province or territory for 12 or more consecutive months and who meet other conditions.
Because residency rules can be more complicated than simply asking whether someone has lived in Ontario for 12 months, students with unusual residency histories should confirm their eligibility directly with OSAP.
You may not be eligible if you:
- do not meet OSAP academic progress requirements
- have sufficient financial resources, including other government assistance, to cover allowable expenses
- have significant discrepancies between income reported to OSAP and the Canada Revenue Agency
- have defaulted on a student loan
- have certain outstanding grant, bursary or loan overpayments
- have entered certain bankruptcy, consumer proposal or debt-relief proceedings
- have reached the applicable lifetime student-aid limit
Ontario currently lists lifetime limits of 340 weeks for most students, 400 weeks for doctoral students and up to 520 weeks for students with disabilities.
6. How to Repay Your OSAP Loan: Repayment, Interest and RAP
Understanding repayment is just as important as understanding how much you can receive.
6.1 When repayment begins
You generally have a six-month grace period after you graduate or leave full-time studies before you need to begin making payments.
If you return to full-time studies and your enrollment is confirmed under the applicable rules, repayment may be postponed.
6.2 What happens to interest?
The current Ontario government guidance states that:
- the federal portion of an OSAP loan has a 0% interest rate
- the Ontario portion is calculated at prime rate + 1%
- your monthly payment is calculated using the interest rates applicable on your first payment date
- if interest rates later change, your monthly payment generally stays the same, but the amount applied to principal can change
6.3 Who do you repay?
You make your payments through the National Student Loans Service Centre (NSLSC) rather than paying OSAP directly.
6.4 How long do you have to repay?
Ontario currently describes the standard repayment schedule as approximately 9.5 years.
If you need lower monthly payments, the NSLSC allows eligible borrowers to extend the repayment period from 9.5 years up to 14.5 years (up to 174 months). Extending repayment can reduce the monthly payment but may increase the amount of interest paid on the Ontario portion of the loan.
You can also make additional payments to repay your loan faster.
6.5 What if you are struggling to repay?
You may be eligible for the Repayment Assistance Plan (RAP).
RAP can reduce your required monthly payment based on factors such as family income, family size, and outstanding student-loan debt. Depending on your circumstances, your required payment may be reduced substantially or even to $0 for a six-month period. You must generally have your student loans in good standing and reapply every six months.
For the Ontario portion, repayment assistance can progress through interest-relief and debt-reduction stages. Ontario states that debt reduction can ultimately help eliminate eligible debt within a maximum of 15 years from leaving school, or within 10 years for eligible borrowers with permanent or persistent/prolonged disabilities, provided they remain eligible.
6.6 What happens if you do not repay?
Failing to make payments can put your loan into default and may affect your credit and future eligibility for student assistance.
If you experience financial difficulty, it is better to contact the NSLSC and explore repayment assistance rather than simply stop making payments.
6.7 What if you declare bankruptcy?
An OSAP loan is not automatically erased when you file for bankruptcy or a consumer proposal.
Ontario’s current guidance says you must continue making payments and can apply for repayment assistance if you cannot afford them. If you have been out of full-time studies for more than five years, you may ask a bankruptcy court to consider including the OSAP debt in a discharge.
7. OSAP Alternatives and Other Student Financial Aid Options
OSAP is not the only possible source of education funding. However, students should understand that different government programs can have their own eligibility rules and may not always be combined for the same period of study.
7.1 Better Jobs Ontario
Better Jobs Ontario is designed primarily to help eligible people who are changing careers or re-entering the workforce after job loss or a prolonged period of unemployment.
You may qualify if you:
- have been laid off and are no longer working
- have been laid off and are working temporarily to cover costs
- have not been laid off but have been unemployed for at least 12 weeks and are part of a low-income household
People receiving EI, Ontario Works or ODSP can still apply, subject to the program’s eligibility requirements.
Better Jobs Ontario applications are handled through an Employment Ontario service provider, where an advisor can help determine whether the program is appropriate and assist with the application.
7.2 Federal student grants
Federal student grants are another important part of the financial-aid picture.
For 2026–27, eligible students may qualify for federal grants such as:
- up to $4,200 per year through the Canada Student Grant for Full-Time Students, where eligible
- up to $2,800 per year through the Canada Student Grant for Students with Disabilities
- up to $280 per month per dependant, or up to $2,240 per year per dependant, through the Canada Student Grant for Full-Time Students with Dependants
Eligibility depends on the student’s financial situation, program, school, and applicable federal rules.
Students should also look for non-government funding, such as:
- scholarships
- employer education assistance
- private bursaries
- community organization funding
- institutional awards
- other education or workforce-development programs
The key is to check the rules for each program before assuming that two sources can be combined.
8. How to Check if a School Is OSAP-Approved
OSAP approval should be one of the first things you verify before enrolling. But checking a school’s funding status should not be the only part of your research.
A student making a major education investment should also:
- Check whether the school and specific program are approved for OSAP.
- Ask the school for current information about tuition, program length and funding.
- Read recent student reviews from multiple sources.
- Look for patterns in reviews rather than relying on one positive or negative comment.
- Visit the campus when possible.
- Speak with current students or recent graduates when possible.
- Ask questions about the program’s curriculum, practicum or placement requirements, career preparation and student support.
- Ask for clear answers about what is included in tuition and what additional costs may apply.
- Speak with a financial-aid or admissions representative about your individual situation.
This matters because students should make an informed decision about the entire education experience – not just the availability of OSAP.
Ontario and the federal government maintain official information about approved/designated institutions and programs. Federal guidance also notes that a school may be eligible while some programs at that school may not be eligible.
If someone makes a claim about OSAP eligibility, do not rely solely on a verbal promise. Verify the information through official sources and obtain clarification from the school and OSAP where necessary.
9. OSAP 2026–27 Frequently Asked Questions
9.1 When do the 2026–27 OSAP changes take effect?
The changes to the provincial portion of OSAP apply to study periods beginning on or after August 1, 2026. See section 1.3 for details.
9.2 How much of my OSAP will be a grant versus a loan, and do career college students still qualify?
It depends on your institution. For publicly assisted colleges and universities, Ontario’s framework provides up to 25% of OSAP funding as grants and at least 75% as loans. For approved private postsecondary schools and career colleges, the provincial portion is provided entirely as a loan – but eligible students at these schools can still receive OSAP. Do not assume a specific split such as 10% grant/90% loan unless your individual OSAP assessment confirms it.
Some students may still qualify for other grant programs regardless of institution type – for example, federal grants for eligible students with disabilities or dependants.
9.3 Is OSAP still interest-free while I am studying?
Yes, OSAP loans are generally interest-free while you are in school. After you leave full-time studies, you generally have a six-month grace period before repayment begins. The federal portion has a 0% interest rate; the Ontario portion is currently calculated at prime + 1% – not a fixed rate.
9.4 How long do I have to repay my OSAP loan?
See section 6 for full repayment details, including how the standard 9.5-year schedule can be extended.
9.5 What happens if I cannot afford my payments?
You may qualify for the Repayment Assistance Plan (RAP), which can reduce or pause your payments. See section 6.5 for how it works.
9.6 Can I get OSAP if I have used RAP before?
Yes. Using RAP does not automatically disqualify you from future OSAP. What matters is whether your existing student loans are in good standing and whether you meet the eligibility requirements for new funding. Loans in default generally need to be restored to good standing first.
9.7 Can I receive Better Jobs Ontario and OSAP at the same time?
Do not assume you can combine the two for the same period of study. Better Jobs Ontario has its own eligibility and funding rules, and other Ontario assistance programs may restrict concurrent funding. Speak with an Employment Ontario service provider and your school’s financial-aid office before applying or accepting funding.
9.8 Where can I get a number specific to my situation?
Speak with the financial-aid or counselling team at the college you are considering. Your individual OSAP assessment depends on factors such as income, family circumstances, tuition, program details, and other eligibility information. You can also use the official OSAP Aid Estimator, but your school or OSAP can help clarify questions a general estimator may not answer.
Important Note:-
This article summarizes OSAP and related student-financial-assistance information available in August 2026. Government funding rules, eligibility requirements, grant amounts, interest rates, and program policies can change. Confirm your individual eligibility through official OSAP resources or your school’s financial-aid office before making a decision.
Official OSAP Resources and Helpful Links
