NEWS RELEASE
February 12, 2026
OUSA Responds to Provincial New Funding Model, Updated Tuition and OSAP Framework Announcement
TORONTO - Today, the provincial government announced a pivotal investment in the post-secondary sector to increase its long-term financial sustainability. The announcement included an overall $6.4 billion investment over four years and raising annual operating funding to $7 billion. There will also be an updated tuition framework allowing up to a 2 percent increase per year for three years, then up to 2 percent or the three-year average rate of inflation, whichever is less, in the years following. However, this will be accompanied by drastic changes to the OSAP structure, where Ontario students will only be eligible to receive a maximum of 25 per cent of their OSAP funding as grants and a minimum of 75 per cent as loans.
“Investing in post-secondary education is an investment in Ontario’s future,” said Sayak Sneddon-Ghosal, OUSA President. “We are encouraged by the Ministry of Colleges, Universities, Research Excellence and Security’s commitment of $6.4 billion to the sector over the next four years, which represents an important step toward addressing longstanding funding challenges facing Ontario institutions.” Further, the commitment to fund 70,000 more in-demand seats is welcomed and comes close to meeting projected enrollment growth of 76,870 (18.2%) between 2023 and 2030 across Ontario universities.
OUSA is also pleased to see that the province’s updated tuition framework aligns with our long-standing recommendations. By permitting up to 2 percent tuition increases over the next three years and modest increases in the years following, the government is taking measured strides in their approach to sector sustainability.
Sayak Sneddon-Ghosal, OUSA President, added that “while this commitment is a significant win for the sector, we are concerned about the continued shift within OSAP from grants to loans, particularly how it risks disproportionately impacting students from various socioeconomic backgrounds.” With OSAP grants decreasing to 25% of the total proportion, OUSA recommends that, in light of recent changes to the tuition framework, a comprehensive review of OSAP eligibility takes place to ensure a proportional increase in access to assistance and in the amount of assistance.¹
As student loans increase to 75% of total funding allocation, future graduates will face greater financial strain as they enter the workforce. According to the Ontario Undergraduate Student Survey (OUSS), 79% of students anticipate that their debt would be somewhat or very burdensome after graduation. The province must ensure that the job-preparedness gained through post-secondary education is supported by comprehensive loan-repayment strategies, with consultation from students, that facilitate graduates’ meaningful engagement in the economy. To alleviate the immediate debt burden, OUSA recommends that the provincial government implement a no-interest student loan program modelled after the federal initiative to remove interest on all student loans. Additionally, to further support future graduates, the provincial government should extend the OSAP loan repayment grace period from six months to at least two years.
Students are our future. We are excited about the much-needed investment in operational funding, and we recognize that tuition’s gradual lifting, through capped, predictable increases, provides greater stability for institutions, while maintaining affordability for students. We look forward to continued engagement with the government to ensure that any reforms to student financial aid mitigate adverse impacts on students and preserve the accessibility and affordability of post-secondary education.
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¹ Council of Ontario Universities, “Funding Enrolment Growth to Support Ontario Students and Economic Growth,” Council of Ontario Universities (Council of Ontario Universities, 2024), https://ontariosuniversities.ca/wp-content/uploads/2024/08/Funding-Enrolment-Growth-to-Support-Students-and-Economic-Growth.pdf.
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About: OUSA represents the interests of 160,000 professional and undergraduate, full-time and part-time university students at nine student associations across Ontario. Our vision is for an accessible, affordable, accountable, high-quality and equitable post-secondary education in Ontario.
Contact:
Tobi Olumurewa
Manager of Communications
Ontario Undergraduate Student Alliance
416-341-9948 | [email protected]