Ontario to Lift Tuition Freeze, Boost Post-Secondary Funding Amid International Student Decline

The Ontario government will lift its long-standing freeze on post-secondary tuition this fall, allowing colleges and universities to raise fees by up to two per cent annually for the next three years as they grapple with steep revenue losses tied to declining international student enrolment.

Starting in September, institutions will be permitted to increase tuition by two per cent per year. After three years, the annual increase will either be tied to inflation or remain at two per cent whichever is lower. The move marks the first significant tuition policy shift since the Progressive Conservative government cut fees by 10 per cent in 2019 and subsequently froze them.

The tuition adjustment comes alongside a major funding commitment. The province announced an additional $6.4 billion in core operating support over the next four years, a measure it says will raise total annual operating funding for the sector to approximately $7 billion a roughly 30 per cent increase. The funding will focus on programs aligned with what the government describes as “in-demand careers,” and is expected to create 70,000 new student spaces.

Minister of Colleges, Universities, Research Excellence and Security Nolan Quinn said the changes are designed to stabilize a sector that has faced mounting financial pressure since the federal government capped international student admissions. The cap, introduced and later tightened in 2024, significantly reduced enrolment from abroad a revenue stream that had become critical for many Ontario institutions.

“Post-secondary education must remain accessible while also being sustainable,” Quinn said. “We need to ensure students graduate with the skills required for today’s labour market, while institutions have the financial stability to deliver high-quality education.”

Finance Minister Peter Bethlenfalvy echoed the sentiment, calling the funding boost a long-term investment in Ontario’s economic future.

The financial strain on colleges and universities has been substantial. Before the federal cap, international students accounted for roughly 30 per cent of revenue at Ontario colleges. The province estimates the drop in enrolment has resulted in about $2 billion in lost annual revenue. Colleges Ontario reports its members have already reduced spending by $1.8 billion, suspended approximately 600 programs and eliminated 8,000 jobs. Several campuses have closed.

While institutions have welcomed the new funding and flexibility on tuition, they have also been urged to continue finding internal efficiencies. Quinn emphasized that sector-wide cost management remains necessary, even with the new financial support.

University and college leaders responded positively to the announcement. Steve Orsini, president and CEO of the Council of Ontario Universities, said the new investment will provide greater stability and allow for improved long-term planning. Colleges Ontario president Maureen Adamson noted that public college graduates play essential roles in key industries, including health care, construction, mining, transportation and advanced manufacturing.

However, opposition critics argue the government is shifting financial burdens onto students during a period of high living costs. Ontario NDP MPP Peggy Sattler said the combination of tuition increases and changes to student financial aid will make post-secondary education less accessible.

In addition to adjusting tuition, the province is reforming the Ontario Student Assistance Program (OSAP). Currently, about 85 per cent of OSAP support is delivered through grants and 15 per cent through loans. Beginning this fall, students will receive no more than 25 per cent of their assistance as grants, with the remainder provided as loans a change that critics say will increase student debt.

The government maintains that the revised funding model is necessary to preserve access over the long term, arguing that without structural adjustments, institutions risk deeper cuts and instability.

Despite the planned increases, the province says tuition rates will remain below 2019 levels until 2030 under the new framework.

As Ontario’s post-secondary sector adapts to a changing financial landscape, the government’s latest measures aim to strike a balance between institutional sustainability and student affordability a balance that will likely remain at the centre of political debate in the months ahead.