Tuition Freeze Ontario: Students Brace for Higher Fees and Fewer Grants

Ontario stuck to its tuition freeze for seven years. Even as inflation subtly increased every other line item in their budgets, from transit passes to textbooks, students learned to anticipate predictable costs. Officially, that era is now over.

Colleges and universities throughout the province will be able to increase tuition by up to 2% annually starting in September 2026. Although the increase is small in terms of numbers, it represents a break from a freeze that many believed was necessary to prevent debt from getting out of control. The province appears to be attempting to strike a careful balance between flexibility and restraint by limiting future hikes to the lower of two percent or the three-year average inflation rate.

This policy change is accompanied by a significant reorganization of the Ontario Student Assistance Program. Only 25% of a student’s aid package may consist of non-repayable grants under the new model. Reversing the structure that students had become accustomed to, where grants constituted the majority, the remaining 75% will be loans.

This change comes at a time when student budgets are already at their breaking point due to the cost of living crisis. Rent has been steadily rising. Once a manageable expense, groceries are now a problem for those who work part-time. Additionally, employment prospects are still very uncertain, particularly for recent graduates.

Nonetheless, the government of Ontario is portraying this shift in a positive light. All institutions will benefit from a $6.4 billion funding package, but those in underserved, rural, and northern areas will receive special attention. The goal is to maintain access to post-secondary education in both urban and rural areas, stabilize operations, and grow programs that are in high demand.

This announcement, for instance, was a welcome relief to the University of Windsor. President J.J. McMurtry expressed gratitude to the government for acknowledging the need for support for Ontario’s universities. Campuses that have experienced budget cuts, hiring freezes, and—in more extreme situations—program suspensions as a result of financial strain share that sentiment.

The 2024 federal cap on international student visas is a key driver of this new funding stream. Colleges and universities that had become reliant on these higher-paying tuition streams have seen a sharp decline in revenue as a result of the decline in international enrollment. In an effort to make up for the loss while remaining politically cautious, Ontario has restored the ability to raise domestic tuition by a small amount.

From the standpoint of a policymaker, this appears to be a very effective triage strategy: stabilize post-secondary educational institutions, restrain tuition growth linked to inflation, and gradually and quietly return some financial responsibility to students.

However, not all parties involved consider this a victory. Concerns regarding the OSAP changes have been raised by student organizations. Although the funding increase is welcome, Omar Sayyed, VP of Finance at the Ontario Undergraduate Student Alliance, pointed out that students will probably be more personally impacted by the change in OSAP’s grant-to-loan ratio than by the tuition increase itself.

From the perspective of financial aid, the shift is remarkably similar to federal policies that prioritize repayable assistance over grants. Although technically correct, Ontario’s assertion that this “aligns with other jurisdictions” is socially tone deaf. Many students are still working to pay off debt that started when loan terms were more favorable.

I was thinking back to a conversation I had with a former student last year who had just paid off her OSAP loan after almost ten years of consistent payments. She smiled, but it was clear that she was exhausted.

In the upcoming years, I believe that fatigue will become more prevalent.

The government’s approach extends beyond tuition and funding. Ontario is mandating that institutions fill in the gaps in student aid through a program known as the Student Access Guarantee. Schools must provide institutional aid to make up the difference if OSAP is unable to cover all of a student’s tuition, fees, or course materials. Individual colleges and universities are given more responsibility under this arrangement, which challenges those that are already overburdened and rewards those with greater reserves.

Ontario’s post-secondary ecosystem is being pushed toward greater autonomy through this multi-layered approach, but this comes with increased inequality. The transition might go more smoothly for larger universities with effective alumni fundraising initiatives. It may be difficult for smaller organizations to offer the same safety net.

There are, however, grounds for optimism. Universities are able to create longer-term budget plans when tuition policies are more predictable. As a result, students are better equipped to predict their costs, which is especially helpful for those balancing internships, part-time jobs, and school schedules.

This funding boost may result in new labs, improved equipment, and more opportunities for hands-on learning for upcoming graduates going into fields like advanced manufacturing, health technology, clean energy, and public policy. Ontario may be incorporating employability and affordability into its education policy by matching program expansion to labor market demands.

Investing in results rather than just access is a very creative strategy.

It’s simple to concentrate on what’s gone: the OSAP model, which relies heavily on grants, and the comforting symbol of tuition freezes. However, what is being built in its stead isn’t always depressing. If properly implemented, this approach may result in a more robust post-secondary environment that strikes a balance between student achievement and institutional health.

This balance will be put to the test in the upcoming school year.

In Ontario, families, educators, and students are embarking on a new chapter that is full of promise but also feels uncertain in some places. The province might not be eliminating affordability by resetting financial structures and focusing on future growth. For those who are willing to walk it, it might be enlarging a corridor that is still narrow but manageable.