Ontario is injecting billions into colleges and universities while ending its long-running tuition freeze and reshaping student aid. The province says the changes are meant to stabilize a sector facing financial strain after years of tight operating funding, flat domestic tuition and fewer international students.
Colleges and Universities Minister Nolan Quinn announced a package the government says totals $6.4 billion in new funding over four years.
What the $6.4B is supposed to do
The province says the plan will expand training capacity and adjust funding to better reflect real costs. It includes funding to create 70,000 additional spaces in programs described as in-demand, along with more support for higher-cost programs and increased per-student funding.
Ontario is also reviewing and updating the funding formula that determines how money flows to institutions. Officials have framed that review as part of a broader effort to address long-term sustainability.
Tuition can rise again, but with a cap
The government is lifting the tuition fee freeze that has been in place since 2019. Under the new rules, colleges and universities can increase tuition by up to 2% per year for the next three years.
Ontario says the limit is designed to give schools more predictable revenue while keeping increases modest for students and families.
OSAP shifts away from grants and toward loans
Ontario is also changing the Ontario Student Assistance Program, known as OSAP, which provides financial aid to eligible students. The government says it will reduce the proportion of assistance delivered as non-repayable grants and rely more on loans.
Quinn said the shift is meant to keep OSAP financially sustainable as its costs have been rising.
The crisis Ontario says it is trying to fix
The announcement comes as institutions warn of a post-secondary financial crunch. Colleges and universities have pointed to a mix of pressures, including years of constrained public funding, domestic tuition that has been largely flat, and a sharp drop in international enrolment revenues after policy changes reduced student numbers.
Earlier calls from the sector warned that without new support, cuts to programs and staffing would continue.
What happens next for students and campuses
Ontario is betting that bigger operating support, more funded seats and controlled tuition increases will stop deeper reductions on campuses. At the same time, the pivot in OSAP could leave more students relying on repayable aid.
The province says the package is aimed at long-term stability. The next test will be how quickly institutions can expand high-demand programs, and how students absorb higher tuition alongside a student-aid system that leans more heavily on loans.
