A new framework for the Ontario Student Assistance Program (OSAP) is causing students stress over their financial futures.
In the new framework, which took effect Aug. 1, students are eligible to receive a maximum of 25 per cent of their funding in grants and a minimum of 75 per cent in loans. Before the change, up to 85 per cent of OSAP funding could come in the form of grants.
Announced on Feb. 12, the change was part of the province’s new funding model for postsecondary education.
In a statement released Aug. 1, the Ontario Undergraduate Student Alliance (OUSA) — a group of student unions across Ontario who advocate on behalf of post-secondary students to the provincial government — outlined its concerns about the impact of these changes.
“While OUSA recognizes the importance of protecting the sector’s financial sustainability, we are concerned that this protection comes at the cost of students from diverse socioeconomic backgrounds who lack alternative financial support,” the statement said.
A survey OUSA conducted found that 43.5 per cent of students pursuing an undergraduate degree rely on OSAP funding to cover more than half the cost of their education, and 63.9 per cent expressed concerns about “the accumulation of debt and being burdened with long-term debt after graduation.”
Its statement also outlined its current priorities. OUSA is lobbying the provincial government to implement a no-interest student loan program modelled on the federal initiative, which would remove interest from all student loans, including those held by past students who still have outstanding student loan balances.
OUSA is also advocating for an extension of the OSAP loan repayment grace period from six months to at least two years.
In a statement to The Journal, OUSA President Rory Norris said the organization will advocate with elected officials across parties, and the Ministry of Colleges, Universities, Research Excellence and Security, while collaborating with other student advocacy groups to gather “essential perspectives.”
“Our advocacy on OSAP will continue throughout the school year, and we will continue to advocate for improved accessibility and affordability of post-secondary education,” he said.
In her role as Commissioner of External Affairs for the AMS, Racheal Reddy sits as a board member on OUSA’s steering committee.
In an interview with The Journal, Reddy said she anticipates these changes will impact affordability and student well-being overall.
“A lot of students do seek financial aid for the cost of postsecondary education and postsecondary education is not limited to just tuition,” she said. “It also has to do with housing costs, living costs, being able to afford services around you.”
Aimen Khan, ArtSci ’27, spoke on her experience with OSAP in a statement to The Journal.
Khan said she understands why it is necessary for OSAP to be reworked for financial sustainability but remains concerned about paying it off in the current job market.
She mentioned challenges that may arise with other forms of financial aid requiring OSAP contributions. The Queen’s General Bursary currently requires a student to qualify for a minimum amount of funding in government aid to be considered eligible.
“They should be separate things, but the first question is always ‘Do you have OSAP?’” she said on applying for further financial aid.
In a statement to The Journal, Queen’s said it will continue its “longstanding commitment to promoting access to university and will continue to offer a range of financial supports to students who rely on OSAP.”
While these programs are designed to complement and not replace provincial aid, the University said eligible students would continue to receive the same amount of provincial funding. However, more of it would be as a loan. Students may apply for a Repayment Assistance Program, choose only to receive grant funding from OSAP, and continue to use the University’s general bursary.
In its statement, OUSA said that the Student Access Guarantee Program, a provincial program that helps ensure gaps left by OSAP are filled with other financial aid, are a “welcomed complementary policy.” However, they added that students remain concerned about eligibility and implementation.
Although the circumstances may appear similar on the surface, Reddy said that having to repay loans in the future or cover current costs out of pocket adds another layer of stress to the many financial pressures students face while attending school.
“With that information, not only are we increasing those lobbying efforts and advocacy efforts, but we’re also trying internally within the AMS to strengthen all our other services and the resources that we do provide students across the commissions,” she said.
Reddy said students are always welcome to directly voice their concerns to the commission of external affairs through office hours and their online platforms. The commission also provides the Academic Accessibility Bursary, which subsidises course-related costs that students may otherwise be unable to afford due to financial hardship.
Tags
2026 OSAP Changes, Financial stress, Ontario government, OSAP, student debt
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