OSAP helps Ontario students pay for college and university through a mix of grants (free money) and loans (money you repay after school). Starting fall 2026, the provincial portion shifts heavily toward loans. Here is how the program works, what changed, and how to apply.
Major 2026 change: Starting with programs that begin on or after August 1, 2026, the provincial grant-to-loan ratio flipped. Previously, up to 75-85% of your provincial OSAP could come as grants. Now, a maximum of 25% comes as grants and at least 75% comes as loans. A package that used to be $30,000 in grants and $10,000 in loans could now be closer to $7,200 in grants and $32,800 in loans. The federal Canada Student Grant (up to $4,200 per year) was not changed.
How OSAP Works
OSAP is an integrated federal-provincial program. When you apply once, you are automatically considered for grants and loans from both the Ontario government and the Government of Canada. You receive a single funding package that combines both.
🎁 Grants
Free money. You never repay grants. They are awarded based on financial need and family income. The Ontario Student Grant is now capped at 25% of your provincial funding (starting fall 2026). The federal Canada Student Grant of up to $4,200 per year is separate and was not reduced.
💳 Loans
Money you borrow and repay after school. Federal loans are permanently interest-free (0% since April 2023). Ontario loans charge Prime + 1%. Repayment starts 6 months after you leave school. If you decline the loan portion, you still receive any grants you qualify for.
You can decline the loan and keep the grants. After your OSAP application is approved, you have the option to accept only the grant portion and decline the loan. You do not have to take on debt to receive free money. However, you should think carefully about whether you can cover the remaining costs without the loan.
Who Can Apply
Ontario resident: You have lived in Ontario for at least 12 consecutive months before starting school (some exceptions for recent arrivals)
Canadian citizen, permanent resident, or protected person
Enrolled in an approved program: Full-time or part-time at an Ontario college, university, or approved private institution
Not at your funding limit: OSAP provides up to 340 weeks of funding (400 for doctoral studies, 520 for students with disabilities)
Maintaining satisfactory academic progress: You must pass enough courses to stay in good standing at your school
Not in default on a previous student loan
How Much You Can Get
OSAP calculates your funding by comparing your assessed costs (tuition, books, living expenses, transportation) against your assessed resources (parental income if dependent, your own income, savings, and scholarships). The difference is your assessed need, funded through a mix of grants and loans.
Weekly maximum (single student)Grants + loans combined~$525/week
Weekly maximum (married/has dependents)Grants + loans combined~$865/week
Canada Student Grant (federal)Up to this amount per year, full-time students$4,200/year
Ontario Student Grant (provincial)Now max 25% of provincial fundingVaries
Family income and grants: Students from families earning under $50,000 may receive grants covering the full cost of tuition at many Ontario colleges and universities. Students from families earning up to $175,000 may still be eligible for some grant funding. The exact amount depends on tuition, living situation, family size, and other factors.
Use the OSAP Aid Estimator before applying. It gives a personalized projection of your grant and loan amounts based on your actual circumstances. This takes about 10 minutes and does not require you to commit to anything.
How to Apply
1Go to ontario.ca/osap and create or log into your account using your ONe-key or MyOntarioID credentials. If you do not have one, you will be prompted to create it during the process.
2Gather your information: Social Insurance Number (SIN), school name and program details, your income (and your parents' income if you are a dependent student), your banking information for direct deposit, and any scholarship or bursary amounts.
3Complete the online application. OSAP walks you through the form section by section. Be honest and accurate. Discrepancies between your application and your tax return will delay processing or result in funding being reduced.
4Upload any required documents. Some students are asked to provide additional documents (proof of income, proof of residency, custody agreements, etc.). Check your OSAP account regularly for document requests.
5Sign your Master Student Financial Assistance Agreement (MSFAA). This is the loan agreement. You sign it once and it covers all future OSAP loans. Sign it online through the National Student Loans Service Centre (NSLSC) website. If you only want grants, you can decline the loan and skip this step.
6Confirm your enrolment. Your school verifies your enrolment with OSAP. This usually happens automatically at the start of the semester.
7Receive your funding. OSAP pays tuition directly to your school and deposits the remaining balance (for living expenses, books, transportation) into your bank account by direct deposit. Payments typically arrive in two installments: one at the start of each semester.
Apply early. Processing takes several weeks and your school needs confirmed funding before they can finalize your tuition payment. If you apply late, you may need to pay tuition out of pocket and get reimbursed later. The OSAP application opens in spring for the upcoming academic year and closes 60 days before your study period ends.
Repayment
The 6-month grace period:
After you leave school (graduate, withdraw, or drop below part-time), you have a 6-month non-repayment period. During this time, you do not need to make payments. Federal loans remain interest-free. Ontario loans do accrue interest during this period (at Prime + 1%), but you do not need to make payments yet.
Interest rates:
Federal student loansPermanently since April 1, 20230% interest
Ontario student loansVariable rate, adjusted with Bank of Canada ratePrime + 1%
Repayment Assistance Plan (RAP):
If you earn under approximately $40,000 per year after graduating, you may qualify for the Repayment Assistance Plan. RAP can reduce your monthly payments to $0 based on your income and family size. After 15 years of RAP, any remaining loan balance is forgiven. Apply through the NSLSC website.
Typical repayment:
The standard repayment term is 9.5 years. If you borrowed $30,000, your monthly payments would be approximately $310 per month over that term. You can make extra payments at any time with no penalty to pay off the loan faster.
The 2026 Changes Explained
The Ontario government announced changes to the provincial portion of OSAP, effective for programs starting on or after August 1, 2026:
Before (up to 2025-2026)
Up to 75-85% of your provincial OSAP funding could come as grants. Low-income students received the majority of their aid as free money. Many students graduated with relatively little provincial loan debt.
After (2026-2027 onwards)
A maximum of 25% of provincial funding comes as grants. At least 75% comes as loans. Students will graduate with significantly more debt from the provincial portion. The total amount of OSAP available did not decrease, but the composition shifted from grants to loans.
What did NOT change:
• The federal Canada Student Grant (up to $4,200 per year for full-time students) was not affected
• Federal loans remain at 0% interest permanently
• The Repayment Assistance Plan still exists for low-income graduates
• Eligibility criteria did not change
• The total maximum funding amount did not change
Part-Time Students
Part-time students (taking 20% to 59% of a full course load) can apply for OSAP. The funding is lower than full-time, and the mix of grants and loans is different. Part-time students may receive grants only, with no loan component, depending on their income and course load.
If you are taking at least 40% of a full course load, you are considered full-time for OSAP purposes if you have a permanent disability. This means you get access to the full-time funding amounts even with a reduced course load.
Students With Disabilities
Students with permanent disabilities qualify for additional OSAP support:
• Up to 520 weeks of funding (vs 340 weeks for other students)
• Full-time funding at 40% course load (vs the standard 60%)
• The Bursary for Students with Disabilities (BSWD): up to $2,000 per year for disability-related education costs not covered by other programs
• The Canada Student Grant for Students with Permanent Disabilities: up to $4,000 per year on top of regular OSAP
You will need documentation from a medical professional confirming your disability. Your school's accessibility office can help with the application process.
Frequently Asked Questions
Can I use OSAP for schools outside Ontario? +
Yes, but with lower funding. OSAP provides a maximum of $300 per week (vs $525 per week in Ontario) for students attending approved programs at schools outside Ontario or outside Canada. The school must be on the list of approved institutions. Check with OSAP before enrolling.
I am a mature student returning to school. Can I get OSAP? +
Yes. There is no age limit for OSAP. Mature students (those who have been out of high school for at least 4 years or who are 22+) are assessed based on their own income rather than their parents' income, which often means higher grants. You must meet the same eligibility requirements as any other student.
What if I drop out or switch programs? +
If you withdraw from school, your OSAP funding may be recalculated based on the actual number of weeks you attended. You may need to return some funding if you received money for weeks you did not attend. Grants may be converted to loans if you withdraw before completing 60% of your study period. Contact your school's financial aid office before withdrawing so you understand the implications.
Does OSAP cover second degrees or graduate school? +
Yes, as long as you have not exceeded your lifetime funding limit (340 weeks, or 400 for doctoral studies). Students pursuing a second undergraduate degree, a professional degree (law, medicine, etc.), or a graduate degree can all apply. The funding amount is assessed the same way as a first degree.
Can I work while receiving OSAP? +
Yes. OSAP expects students to contribute toward their education costs from employment income. The amount OSAP expects you to contribute varies by your situation, but working does not disqualify you. Your income is factored into the needs assessment. Co-op and internship income is also considered.
What happens if I fail a course? +
Failing a single course does not usually affect your OSAP. However, if you fail enough courses that you are placed on academic probation or do not maintain satisfactory academic progress, your future OSAP eligibility may be restricted. Your school determines what constitutes satisfactory progress and reports your status to OSAP.
Ontario resident and the person behind serviceontario.online. Every guide on this site is independently researched by reading the full official sources at ontario.ca and canada.ca, then rewritten in plain language. Adel is not a lawyer, financial advisor, or government employee. For legal, medical, or financial advice specific to your situation, consult a qualified professional.
Independent ResearcherOntario ResidentNot Government Affiliated
