Ontario students brace for ‘vast amount’ of debt amid OSAP changes, tuition increases

Aidan Jeffers, an incoming master's student at the University of Toronto, is concerned about the impact of recent student financial aid changes on his debt situation. Under Ontario's new OSAP (Ontario Student Assistance Program) rules, only 25 per cent of a student's aid can come in the form of non-repayable grants, while the remaining balance must be taken in loans.

This significant shift from a 85 per cent grant to a 25 per cent grant ratio means Jeffers will be accruing far more debt compared to his undergraduate years. He estimates he will receive around $19,500 in OSAP funding this year, with $12,000 going toward tuition, resulting in a substantial increase in his loan debt. Jeffers expects to work during his master's program to alleviate some of the financial strain, potentially working 25 or 30 hours per week.

Rory Norris, president of the Ontario Undergraduate Student Alliance, acknowledges the difficulty in assessing the full impact of the changes, as many students are just learning about the new funding structure. However, he notes that OSAP remains the primary form of financial aid for students, with over 80 per cent of them relying on it even before the changes.

Students like Ishan Bijukuchhay, a computer engineering student at Queen's University, have already experienced a shift in their OSAP funding ratios, moving from 60 per cent grants to 85 per cent loans. Bijukuchhay estimates his overall OSAP funding has decreased by about $3,000. He has managed to cover his expenses through part-time work, including a lifeguarding job, and has qualified for a work-study program at his university.

Nonetheless, Bijukuchhay will still be reliant on OSAP and the university's financial services to fund additional expenses such as rent, fees, and supplies. The Ontario government defends the changes, arguing that they were necessary to control rising OSAP costs, which ballooned to $2.7 billion in the current fiscal year and are projected to reach $4.1 billion by 2028-29.

However, critics point to the fact that between 2023-24 and 2024-25, the province spent $465 million more on OSAP grants, with 95 per cent of that money going to private career college students, suggesting the government could have supported university and publicly funded college students without disproportionately penalizing them.