10 Ways to Close Your Funding Gap After OSAP Cuts

You ran the numbers. Maybe you used the updated OSAP estimator, or maybe you sat down with a spreadsheet and a knot in your stomach. Either way, the result was the same: there is a gap between what school costs and what you can actually pay.

You are not imagining it. Starting Fall 2026, OSAP grants have been slashed from up to 85% of your funding package down to a maximum of 25%. For a student who was counting on $10,000 in OSAP with $8,500 in grants, the new reality is $2,500 in grants and $7,500 in loans. That is $6,000 more debt in a single year -- and $24,000 more over a four-year degree.

The gap is real. But it is not unfillable. This guide walks through 10 specific, practical strategies to replace the funding you lost. Some will put money in your pocket this year. Others build over time. All of them are things you can start doing today.

Use our Funding Gap Calculator to see your personal gap before you start -- it takes two minutes, and knowing your number is step one.

Strategy 1: Apply for Scholarships -- More Than You Think You Should

Potential value: $500 to $80,000+

This is the single highest-impact move you can make, and it is the one most students undershoot. Here is why: between $10 and $20 million in scholarships go unclaimed in Canada every year, according to ScholarshipsCanada.com. Their database alone lists over 98,000 awards totalling more than $281 million. Roughly 3% of those awards receive zero applications.

The students who close their funding gap are not geniuses. They are persistent. They apply to 15, 20, or 30 scholarships -- not just the one or two big-name awards everyone knows about.

What to do right now

• Use FundMyCourse's scholarship search to find every award you qualify for. Tell us your province, program, background, and interests. We will show you matches in 90 seconds.
• Target the overlooked awards. Scholarships under $2,000 often have fewer than 10 applicants. Apply to 10 of them and you could win $3,000 to $5,000.
• Don't skip the ones with essays. Many students bail when they see a 500-word essay requirement. That is exactly why those awards have less competition.
• Set a schedule. Two applications per week from April to August gets you 40 applications by the time school starts.

Scholarships you probably don't know about

• Schulich Builders Scholarships: $40,000 ($20,000/year) for skilled trades students at 12 Ontario colleges. 120 awarded annually.
• TD Scholarships for Community Leadership: Up to $70,000 over four years for students with strong community involvement.
• Skills Ontario Awards: $1,000 for trades and technology students.
• Local service clubs: Rotary, Lions, and Kiwanis chapters across Ontario give out $500 to $2,000 scholarships that often receive a handful of applications.

Strategy 2: Maximize Your RESP and CESG

Potential value: Up to $7,200 in free government money (CESG) + up to $2,000 (CLB) + investment growth

If your family opened a Registered Education Savings Plan (RESP) at any point in your life, there may be money waiting for you that you have not claimed. If they did not open one, there may still be time to capture some government matching.

How the CESG works

The Canada Education Savings Grant (CESG) matches 20% of annual RESP contributions, up to $500 per year, with a lifetime maximum of $7,200 per child. If your family contributed $2,500 per year consistently, the federal government added $500 per year in free money on top of that.

For lower-income families, the Additional CESG can add up to $100 more per year.

The Canada Learning Bond (CLB)

This is the one most people miss. The CLB provides up to $2,000 for children from low-income families -- and here is the critical part: no personal contribution is required. The government deposits $500 in the first year the child is eligible, plus $100 for each additional year, up to age 15.

If you are 18 or older and were eligible but your family never opened an RESP, you can open one yourself and request the CLB -- you have until the day before your 21st birthday.

What to do right now

• Check if you have an RESP. Ask your parents or guardians. If one exists, contact the provider to confirm the balance and any unclaimed CESG or CLB.
• If no RESP exists and you are under 21, you can open one at any bank or credit union and request retroactive CLB payments.
• Start withdrawing strategically. RESP withdrawals are taxed in the student's hands, and most students have low income, so the tax hit is minimal.

Strategy 3: Apply for Your School's Bursaries and Emergency Aid

Potential value: $500 to $5,000+

Every public college and university in Ontario has its own bursary programs, funded by donors, endowments, and the institution itself. These are separate from OSAP. They are separate from external scholarships. And a startling number of students never apply for them.

With the OSAP grant cuts, institutions are under pressure to expand these programs. Many have already increased their bursary pools for 2026-2027.

What to do right now

• Visit your school's financial aid office -- in person or online. Ask specifically about:
  • Needs-based bursaries
  • In-course bursaries (for students already enrolled)
  • Emergency financial assistance funds
  • Donor-funded awards specific to your program or faculty
• Apply for the Student Access Guarantee (SAG). Ontario's enhanced SAG is designed to cover tuition, books, and mandatory fees for the lowest-income students when OSAP falls short. Your school administers this. Ask them about the process.
• Do not assume you won't qualify. Bursary criteria vary widely. Some are based on financial need. Others consider your program, your background, your community involvement, or your region of origin.

Strategy 4: Get a Co-op or Paid Internship

Potential value: $12,000 to $24,000+ per work term

If your program offers a co-op option, take it seriously. This is not just resume padding -- it is real money.

The average co-op student in Canada earns roughly $44,000 per year (annualized), or about $21 per hour. At the University of Waterloo, co-op earnings vary by program and term but commonly range from $15,000 to $24,000 for a four-month work term. At the University of Toronto, Arts and Science co-op students averaged about $11,790 per four-month term.

A single co-op work term can cover a full year of tuition at many Ontario colleges and most university programs.

What to do right now

• Check if your program has a co-op stream. If it does and you are not enrolled in it, ask about switching. Some programs allow you to add co-op even after first year.
• If your school does not have formal co-op, look into internship placements, applied research positions, or field placements that carry stipends.
• Start building your resume now. Co-op placements are competitive. A strong resume, LinkedIn profile, and interview prep make the difference.

Strategy 5: Use Work-Study and On-Campus Jobs

Potential value: $4,000 to $7,000 per academic year

Most Ontario colleges and universities run work-study programs that provide part-time, on-campus employment designed to fit around your class schedule.

The University of Toronto's work-study program employs approximately 4,000 students each year. The University of Ottawa's program pays around $4,000 during the academic year and close to $7,000 for summer positions. Ontario Tech offers positions of up to 10 hours per week at competitive wages.

Why work-study beats a random part-time job

• The hours are designed around your courses -- you will not be scheduled during lectures or labs.
• Many positions are related to your field of study, so you are building experience while earning.
• You are already on campus, so there is no commute time eating into your day.
• Work-study earnings generally do not reduce your OSAP eligibility.

What to do right now

• Apply early. Work-study positions open in the spring and summer for the fall term. Do not wait until September.
• Check your school's financial aid website for the work-study application process. Most require demonstrating financial need.
• Also look at non-work-study campus jobs: library assistants, tutoring, lab monitors, event staff, and residence advisors (RAs often get free or discounted housing).

Strategy 6: Explore Provincial Programs Beyond OSAP

Potential value: $2,000 to $35,000

OSAP is the biggest student aid program in Ontario, but it is not the only one. Several provincial and federal programs exist specifically for students in particular situations.

Programs worth investigating

• Better Jobs Ontario (formerly Second Career): Up to $28,000 for tuition, books, transportation, and living expenses -- or up to $35,000 with a living allowance of up to $500/week. This program is for people who have been laid off or unemployed for more than six months and are retraining.
• Ontario Learn and Stay Grant: Covers tuition, fees, books, and other costs for students attending college in northern, southwestern, or eastern Ontario in priority programs (nursing, paramedicine, and other health fields).
• Canada Apprentice Loan: Up to $4,000 in interest-free loans for registered apprentices in Red Seal trades.
• Apprenticeship Incentive Grant (AIG): $1,000 per year (up to $2,000 lifetime) for apprentices in Red Seal trades.
• Apprenticeship Completion Grant (ACG): A one-time $2,000 grant when you complete your apprenticeship and earn your journeyperson certification.

What to do right now

• Review the full list of Ontario student funding programs at ontario.ca/studentaid.
• Talk to your school's financial aid office about which programs apply to your situation.
• If you are retraining or returning to school, look into Better Jobs Ontario specifically -- the funding is substantial and underused.

Strategy 7: Claim Every Tax Credit You Are Entitled To

Potential value: $700 to $2,000+ per year in tax savings

This one does not put cash in your pocket today, but it reduces what you owe at tax time -- and for students juggling tight budgets, that matters.

The Tuition Tax Credit

The federal tuition tax credit lets you claim eligible tuition fees (anything over $100). The credit is calculated at 14% of your tuition. So if you paid $7,000 in tuition, you get a $1,000 non-refundable credit against your federal taxes. Ontario adds a provincial tuition credit on top.

If you do not earn enough to use the credit this year (many students don't), you have two options:

1. Carry it forward to a future year when you are working and have taxes to offset.
2. Transfer up to $5,000 to a parent, grandparent, or spouse who can use it now.

The Canada Training Credit

If you are 26 or older, you may be accumulating Canada Training Credit room -- up to $250 per year. This can be applied against eligible tuition and fees.

What to do right now

• File your taxes. Even if you earned little or nothing, filing ensures your tuition credits are recorded.
• Keep your T2202 form (your school issues this). It is your proof of eligible tuition paid.
• Talk to a parent about transferring unused credits if you cannot use them yourself.

Strategy 8: Consider Living at Home (Even Part-Time)

Potential savings: $8,000 to $15,000 per year

This is the strategy nobody wants to hear, but the math is hard to argue with. The cost of living away from home for a full academic year in Ontario typically adds $10,000 to $15,000 to your annual expenses (rent, food, utilities, transportation).

Living at home -- if it is an option -- is the single largest expense you can eliminate.

If living at home full-time is not possible

• Consider a hybrid approach. Some students live at home for first year, then move out once they have built savings, earned co-op income, or secured scholarships.
• Look at off-campus housing cooperatives where costs are shared and lower than residences.
• Become a Residence Advisor (RA). Many schools offer free or heavily subsidized housing for RAs. You earn while you save on your biggest expense.

What to do right now

• Run the numbers honestly. Use the Funding Gap Calculator with both scenarios -- living at home and living away. See the difference.
• If you are already committed to living away, reduce costs wherever possible: find roommates, cook instead of eating out, use student transit passes.

Strategy 9: Take a Strategic Gap Year

Potential value: $15,000 to $25,000 in savings + stronger scholarship applications

A gap year is not giving up. It is buying time to build your financial position. During 12 months of full-time work at Ontario's minimum wage ($17.60/hour), you could save $15,000 to $20,000 after taxes and basic expenses. At a higher-paying job, more.

A gap year also gives you time to:

• Apply for more scholarships. Many scholarships accept applications from students taking a gap year, and having 12 extra months to polish applications and gather references improves your odds.
• Build experience that strengthens scholarship essays and university applications.
• Open an RESP and capture any available CLB or CESG matching (if you are under 21 and have not claimed it).

What to do right now

• Confirm your school's deferral policy. Most Ontario universities allow you to defer admission for one year. Do this before your acceptance deadline.
• Set a savings target. Treat your gap year like a financial plan, not a vacation.
• Keep applying for scholarships throughout the year. Many have rolling deadlines or spring/summer cycles.

Strategy 10: Use a Student Line of Credit as a Last Resort

Potential value: $5,000 to $15,000+ per year (but this is borrowed money)

A student line of credit from a Canadian bank is better than high-interest consumer debt, but it is still debt. Use it to fill a remaining gap after you have exhausted free money first.

Current rates (as of March 2026)

• Scotiabank ScotiaLine for Students: Prime + 0.50% (the lowest among the Big Five banks for undergrads)
• TD Student Line of Credit: Rates from Prime, depending on program
• RBC Student Lines of Credit: Available for undergraduate, graduate, and professional students

Key advantages over other borrowing

• Interest-only payments while you are in school (at most banks)
• No repayment of principal until after graduation
• Lower rates than credit cards or personal loans
• No impact on your OSAP eligibility (lines of credit are not assessed as income by OSAP)

What to do right now

• Exhaust free money first. Grants, scholarships, bursaries, and RESP withdrawals are all better than borrowing.
• If you do need a line of credit, compare offers from at least three banks. Small differences in rate add up over four years.
• Borrow only what you need. Having a $15,000 limit does not mean you should use $15,000.

Putting It All Together: A Realistic Funding Stack

Here is what a funding plan might look like for a student with a $6,000 annual gap after the OSAP changes:

That is more than enough to close a $6,000 gap -- and this example does not include co-op earnings, RESP withdrawals, or summer employment.

The key is stacking. No single strategy fills the hole on its own. But three or four strategies combined? That closes the gap and then some.

Start With Your Number

Everything in this guide works better when you know your actual gap. Use our Funding Gap Calculator to see:

• Your total cost of attendance
• Your confirmed funding (OSAP grants + loans + other aid)
• Your gap
• Which strategies will have the biggest impact for your specific situation

Calculate Your Funding Gap -- Takes 2 Minutes

Then come back to this guide and start with Strategy 1. Apply for scholarships. Apply for bursaries. Look into co-op. Stack your funding sources. Close the gap.

The OSAP cuts changed the rules. They did not take away your options.

This article was last updated on March 27, 2026. For personalized funding estimates, visit ontario.ca/osap or use our Funding Gap Calculator. For scholarship matches, try our Scholarship Search.

Sources: Ontario Ministry of Colleges and Universities; Canada Revenue Agency; Employment and Social Development Canada; ScholarshipsCanada.com; Statistics Canada; University of Waterloo Co-operative Education; University of Toronto Student Life; University of Ottawa Financial Aid; CBC News; Schulich Builders; Skills Ontario.