OSAP's Grant and Loan Split for 2026-27: What Changed and Who Gets Less
By Muntasir Minhaz • Published Mar 15, 2026 • Canadian Universities & Colleges, Canadian Student Aid & Scholarships
From August 1, 2026, Ontario shifts more of your provincial OSAP funding from grants into loans for programs starting on or after that date, and career college students in Ontario now get their entire provincial OSAP amount as a loan with no grant portion. Ontario announced the change on February 12, 2026.
📩 Announced February 12, 2026
⏱️ Applies to programs starting August 1, 2026 or later
🎓 Public and private college or university students: bigger loan share than before
💵 Career college students: 100 percent loan, no provincial grant
What Ontario changed
On February 12, 2026, Ontario announced changes to the provincial portion of OSAP. According to Ontario's OSAP eligibility page , these changes take effect for programs that start on or after August 1, 2026. The core shift moves more of your provincial OSAP funding into loans and less into grants, across most student groups.
Who loses grant funding, and by how much
The change hits students differently depending on where you study:
| Where you study | What changes from August 1, 2026 |
|---|---|
| Public college or university in Ontario or elsewhere in Canada | A larger share of your provincial OSAP funding arrives as a loan instead of a grant |
| Private institution in Ontario | A larger share of your provincial OSAP funding arrives as a loan instead of a grant |
| Career college in Ontario | Your entire provincial OSAP amount arrives as a loan, with no grant portion |
The Ontario Student Grant is now capped at a maximum of 25 percent of your provincial award, down from up to 85 percent previously, so at least 75 percent arrives as a loan for programs starting August 1, 2026 or later. Career college students get 0 percent grant, 100 percent loan. Check your own award through the OSAP Aid Estimator once you apply for a program starting on or after August 1, 2026, since it reflects the updated mix.
Why the split matters more than the total
Your total assessed need does not necessarily change because of this policy. What changes is how much of that need arrives as a grant you never repay versus a loan you repay with interest after you finish or leave school. A student with the identical assessed need before and after August 1, 2026 ends up owing more over their program under the new mix, even if the total OSAP package looks similar on paper.
Career college students see the biggest shift
Students in career college programs move to a fully loan-based provincial award. Weighing a career college program against a public college or university program with a similar cost, factor in that the career college route now carries a larger provincial loan balance for the same dollar amount of aid, since none of it arrives as a grant.
How this fits with your other OSAP funding
This change applies to the provincial portion of your OSAP package specifically. It does not change your eligibility rules elsewhere in your file, such as your dependent or independent status or your course load category. Those get assessed separately from the grant-to-loan mix.
What to do before you apply for 2026-27
Check whether your program starts before or after August 1, 2026, since that date determines which rules apply to you.
Run your numbers through the OSAP Aid Estimator after the change takes effect rather than relying on a friend's older award as a guide.
Budget for a larger repayment balance if you attend a career college in Ontario.
Ask your school's financial aid office how the change affects students in your specific program.