Under the latest provincial changes, the once grant-heavy Ontario Student Assistance Program (OSAP) is being replaced by a loan-heavy model designed for sustainability. Instead of funding towards post secondary education being grants up to 85%, the provincial portion is now capped at 25% grants with the remaining 75% being loans. For students heading into the 2026–2027 academic year, the bill after graduation may be much higher than before.
OSAP is made up of federal funding & provincial funding
When a student receives money from OSAP, the money comes from two different sources:
Federal Government (Canada) – Typically provides about 60% of the total funding.
Provincial Government (Ontario) – Typically provides about 40% of the total funding.
Ontario’s new rule of 75% loans and 25% grants specifically applies to the provincial portion of the total funding. The federal portion of the fund is still mostly grants and will remain unchanged.
Example – Lets take an hypothetical example a single, low income student with a permanent disability attending a public college in Ontario. They enrol in a 2 year program and are estimated to require $8,000 annually to complete their studies (OSAP funding includes money for tuition, books, and basic living costs)
As discussed earlier, OSAP comes from two different sources, approximately 60% federal funds and 40% provincial funds.
| Funding Source | Total Amount | Breakdown (Grants/Loans) |
| Federal Government | $4,800 (60%) | $3,500 Grants / $1,300 Loans |
| Provincial Government | $3,200 (40%) | $800 Grants / $2,400 Loans |
| Total | $8,000 | $4,300 Grants / $3,700 Loans |
This results in the student having approximately $7,400 ($3,700 x 2 years) in OSAP loans by the time they graduate.
Are there any other programs to help disabled students with tuition?
Canada Student Grant for Students with Disabilities provides up to $2,800 per year in federal grant money that does not need to be paid back. The Bursary for Students with Disabilities (BSWD) and Canada Student Grant for Services and Equipment – Students with Disabilities (CSG-DSE) provides up to $2,000 and $20,000 respectively per academic year for eligible service and equipment items related to post secondary education. The money from this program remains non-repayable, meaning it does not have to be paid back to the government. Disabled students should verify they have a Disability Verification Form (DVF) on file, also known as the OSAP Disability Verification Form or Appendix 8 on the OSAP portal, to take advantage of these programs.
Because OSAP grants were reduced, the Ontario government and public colleges/universities have partnered to create the Student Access Guarantee (SAG). This program ensures that no student is denied an education because OSAP doesn’t cover their basic tuition, books and fees. And in 2026, many schools have moved to automatic assessment to fill unmet financial needs of students with bursaries, scholarships, work study programs or summer employment programs.
The Repayment Assistance Plan for Permanent Disabilities is accessible to disabled individuals who have low income after graduation. Under this plan, the government pays both the interest and the principal of a student loan. After 10 years in the program, any outstanding debt is completely forgiven.
Private Colleges
It is important to note that the 25% grant cap only applies to public institutions. As of Fall 2026, students attending private colleges are no longer eligible for any provincial grants. Should a disabled student decide to attend a private college, 100% of their provincial aid will be a loan.
Annual 2% increase in tuition
Ontario is ending its 7-year tuition freeze, and schools can now raise tuition of domestic students by 2% annually starting in the fall of 2026. Furthermore, while the federal portion of student loans remains interest free forever, the provincial portion in Ontario still accrues interest, which is currently at prime + 1%. Because OSAP loan balances will be much higher under the new 75% loan rule, that interest will add up much faster than it did for previous graduates.