New OSAP Rules Take Effect, Reducing Grants and Adding Loan Interest

Effective August 1, 2026, the Ontario Student Assistance Program (OSAP) has implemented significant changes. The maximum Ontario Student Grant has been reduced from 85% to 25% of provincial aid, meaning a larger portion of financial assistance will now be in the form of repayable loans. Additionally, career colleges are now excluded from the grant program, receiving only loans, and the Ontario portion of OSAP loans will accrue interest at prime plus 1% during the six-month grace period after students leave school. These changes are expected to have a compounding effect on student debt for those starting programs on or after this date.