News and Updates
February 2026 Update
Assalamu alaykum,
On February 12, 2026, the Ontario government announced major changes to the provincial portion of OSAP that take effect for programs starting on or after August 1, 2026. Key changes include:
- Grant-to-loan ratio flipped: Previously, the majority of provincial OSAP aid was provided as non-repayable grants. Under the new policy, students will receive more of their provincial OSAP funding as loans rather than grants.
- Career colleges: Students attending career colleges in Ontario will now receive all of their provincial OSAP funding as loans.
- Public institutions: Students at publicly assisted colleges and universities will also receive a significantly larger share of their provincial aid as loans rather than grants.
What this means for Muslim students: The "grants only" strategy previously recommended on this site is now significantly less effective for the provincial portion of OSAP, since the provincial grant amount is now substantially smaller. (These changes apply only to the provincial portion. The federal portion — Canada Student Loans and Canada Student Grants — is governed separately by the Government of Canada and is not affected. See Grace Period for details on how federal and provincial portions differ.) We strongly recommend reviewing the updated Advice section and exploring alternative funding strategies such as scholarships, bursaries, part-time work, and co-op programs.
Official Sources
The changes to the provincial portion of OSAP that were announced on February 12, 2026 come into effect for programs that start on or after August 1, 2026. Key changes mean that:
- students will receive more of their provincial OSAP funding as loans rather than grants
- students attending publicly assisted colleges and universities in Ontario and Canada, and private institutions in Ontario, will receive a larger share of their provincial OSAP funding as loans
- students enrolled in career colleges will receive all of their provincial OSAP funding as loans
-- Ontario.ca: Learn about OSAP, updated March 23, 2026
Additional official references:
- Ontario 2026 Budget, Chapter 1B — Postsecondary services and OSAP sustainability
- Ontario 2026 Budget, Chapter 4 — Fiscal outlook noting increased loan disbursements
News Coverage and Analysis
"The current proportion is about 85 per cent grants to 15 per cent loans, the government said, but starting this fall students will receive a maximum of 25 per cent of their OSAP funding as grants."
"Post-secondary students in Ontario say the government’s decision to reduce financial assistance grants while lifting a long-standing tuition fee freeze will leave students who are already struggling financially with more debt."
September 2024 Update
Assalamu alaykum,
We have officially launched our new and improved OSAP for Muslims site!
June 2021 Update
Assalamu alaykum,
If you currently have a loan with the NSLSC, you may have received a notification stating that interest is being suspended from the federal portion of your loan until March 2022 (and potentially until March 2023). Please note that this freeze is on the federal portion of your loan and NOT the provincial portion. Therefore, you may still be charged interest on the provincial portion of your loan.
If you are currently being charged interest on your OSAP loan, do not view this as an opportunity to defer your payments. Rather, this is an opportunity to pay off part of your existing loan without engaging in Riba and InShaAllah one step closer towards completely freeing yourself from Riba.