TORONTO – The provincial government announced a plan to address some of the funding challenges Ontario’s colleges and universities face.
Minister of Colleges and Universities, Nolan Quinn, announced the $6.4 billion funding package on February 13, which will be shared across the 23 publicly-funded universities, 24 publicly-funded colleges, and nine Indigenous institutions.
“Through these changes, including $6.4 billion in new funding for the postsecondary sector, our government is not only ensuring the sustainability of our colleges, universities, and Indigenous Institutes, but also preparing our graduates with the in-demand skills they need to meaningfully find good-paying, rewarding careers, while continuing to keep education accessible and keep costs down for students and their families.”
The government continued to blame changes to federal visa programs that limit international students while making the changes.
The four-year funding will increase base funding to schools to $7 billion per year, a 30 per cent increase. The province will also fund 70,000 more in-demand program spots.
The announced changes include the end of a seven-year long tuition freeze, allowing schools to increase tuition fees by two per cent per year for three years. After that, schools can increase tuition based by two per cent, or the three-year average inflation rate — whichever is less of the two.
Significant changes are in store for the Ontario Student Assistance Program. The province is reducing the maximum grant amount of OSAP to 25 per cent, and making a minimum of the loan portion to 75 per cent. This is a 70 per cent reduction in the grant portion of the program. OSAP will only be available as a loan for private career college funding. OSAP programs will still be means tested.
Postsecondary administrators heralded the funding increases.
“Today’s announcement of $6.4 billion is a game changer for the economic future of Ontario,” said President and CEO of Colleges Ontario Maureen Adamson. “The province has taken a significant step that will power economic growth through a dynamic, skilled workforce in Ontario.”
St. Lawrence College President and CEO Glenn Vollebregt said this is the largest investment in the sector’s history.
“It recognizes how integral our students, graduates, and programs are for the strength of Ontario’s economy.”
Algonquin College, which recently announced it was looking to cancel another 35 programs at that college, said it was pausing that process until it could examine the new funding model.
Not every is happy about the funding announcement and changes to tuition and OSAP.
In a statement, the Canadian Federation of Students – Ontario said that students welcome the new funding but that the province missed the mark on affordability, specifically changing OSAP from a grants-based to a loans-based program.
“In the midst of a youth unemployment crisis, and an increasingly precarious job market — this detrimental decision will mean more students graduating with increased student debt, jeopardizing students’ financial future,” said Ontario chair Cyrielle Ngeleka. “These changes, paired with a tuition fee increase and the Ministry’s decision to continue downloading the cost of education onto students will not stabilize OSAP – but rather lock students out from accessing support they need.”
The announced changes will go into effect for the 2026-27 school year.
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