Ontario Lifts Tuition Freeze and Overhauls OSAP: What This Means for Immigrants and International Students
Ontario has announced major changes to post-secondary education funding that will affect students across the province — including immigrants, permanent residents, refugees, and international students.
The province is:
Ending its seven-year tuition freeze
Allowing schools to raise tuition by up to 2% annually
Restructuring OSAP so that most student aid will now be loans instead of grants
Adding $6.4 billion in funding to stabilize colleges and universities
While this may sound like an education policy story, it has important implications for newcomers to Canada and families planning their future in Ontario.
Tuition Is Increasing — But Gradually
Ontario colleges and universities can now increase tuition by up to 2% per year for the next three years.
That means approximately:
$170 more per year for university students
$66 more per year for college students
The tuition freeze had been in place since 2019. Institutions had warned that frozen fees, combined with federal caps on international students, left them under financial strain.
For immigrant families budgeting for post-secondary education, this means costs are rising — though not dramatically.
OSAP Is Shifting Toward Loans
The more significant change is the overhaul of the Ontario Student Assistance Program (OSAP).
Under the new structure:
75% of financial aid will be loans
25% will be non-repayable grants
Previously, eligible students could receive up to 85% of their aid in grants.
This shift means students will graduate with higher debt loads, particularly middle-income families who rely on OSAP support.
The government has stated that low-income students will not face increased costs, but many families will need to rethink how they finance post-secondary education.
What This Means for Immigrants
International Students
International students do not qualify for OSAP. However, these changes still matter. Ontario institutions have lost billions in revenue due to federal study permit caps. As a result:
Schools may become more selective
Programs tied to labour shortages may receive priority
Institutions may focus more on economic outcomes and employability
For international students planning to study in Ontario, choosing the right program is more important than ever — especially if your long-term goal is permanent residence.
Permanent Residents and Protected Persons
Permanent residents and protected persons are generally eligible for OSAP. However, the new loan-heavy structure means:
Higher long-term repayment obligations
Greater need for financial planning
Increased importance of selecting programs with strong employment outcomes
For newcomer families, understanding how student aid works — and how it has changed — is critical.
Refugees and Low-Income Newcomers
The province has indicated that low-income students will not face additional costs. Still, navigating OSAP eligibility can be complex, especially for newcomers unfamiliar with the system. Proper documentation, immigration status confirmation, and income reporting all play a role in accessing support.
The Bigger Immigration Context
Ontario is adding 70,000 new spots in high-demand programs.
This suggests a strong link between:
Education
Labour shortages
Immigration pathways
Programs in healthcare, skilled trades, technology, and other in-demand sectors may see expansion.
For international students and newcomers, this reinforces an important point: Your program choice can directly impact your immigration future.
Graduates in high-demand fields are often better positioned for work permits and permanent residence pathways.
How Ayodele Law Can Help
At Ayodele Law, we assist with:
Permanent residence pathways for international students
Immigration planning for families
If you are considering studying in Ontario — or planning your family’s long-term future — strategic legal advice can help you make informed decisions.
Education is an investment. Make sure your immigration strategy supports it.