Ontario's student-loan reforms shift costs and challenge university funding

Ontario has reworked OSAP to replace much of prior grant support with loans for students in need, and the province is lifting a tuition cap while promising $6.4 billion in additional operating funding for colleges and universities over the next four years.

Ontario's government has announced changes to the Ontario Student Assistance Program and broader postsecondary funding. The OSAP shift emphasizes loans over grants for many students in financial need. At the same time, the province is providing additional operating funds and allowing tuition increases after lifting a previous cap. Labour-market reports cited in commentary show shrinking entry-level vacancies for jobs that previously required bachelor's degrees, which frames why the reforms are being discussed. Key facts: - The OSAP formula is reported to move students in financial need to cover about 75% of costs through loans, with the province providing up to 25% as grants. - The province announced about $6.4 billion in additional operating funding for universities and colleges over four years and has lifted a tuition cap that allows up to 2% annual tuition increases for three years. - The Labour Market Information Council reported that vacancies for jobs requiring a bachelor's degree and under three years' experience fell by more than half since early 2024, from roughly 70,000 to about 30,000. - LMIC and Statistics Canada data cited in the discussion show that, from 2023, the unemployment rate among bachelor's degree holders aged 15–24 edged above that of youth with postsecondary certificates or diplomas. Summary: The announced changes shift more of the up-front cost burden onto students and modify the funding environment for Ontario's postsecondary institutions, while labour-market data cited in the piece point to weaker entry-level demand for some bachelor-degree holders. Undetermined at this time.