Headline: A tech glitch and OSAP overhaul change the student-aid picture—what borrowers should do now
Two recent moves have shifted the short-term landscape for student loans. First, a systems glitch briefly posted interest to some federal SAVE-plan accounts during a period that should have been interest-free. Second, Ontario unveiled a redesign of OSAP that trims grant support and leans more heavily on loans. If you’re on federal student aid, relying on OSAP, or planning to attend post‑secondary school in Ontario, these developments matter.
Who’s affected
– Federal SAVE-plan borrowers: People enrolled in the SAVE repayment plan who saw unexpected interest charges during the protected pause window. – Ontario students and recent grads: Current and prospective Ontario post‑secondary students who count on OSAP’s mix of grants and loans—the redesign increases loan shares and reduces non‑repayable aid.
What happened and why it matters
– SAVE-plan technical error: An automated systems fault caused some accounts to show interest that shouldn’t have been applied. Servicers say they’ve found the glitch and are making balance adjustments, but you shouldn’t assume everything’s fixed on your behalf. Even a short-lived interest posting can change your balance, alter minimum payments, and affect how interest compounds over time. – OSAP redesign (announced Feb. 19, 2026): The province rebalanced aid so maximum grants now make up a smaller slice (about 25%) of total assistance, with the remainder coming from loans. That shift increases the debt load for many students and raises the long-term cost of attending post‑secondary school.
Immediate implications
– Check your account: Don’t take servicer notifications at face value—log in and verify adjustments. A small unexplained charge can grow into a larger problem if not caught. – Expect greater repayment pressure: With less grant aid and more borrowing, monthly payments and the time to repay could rise. That makes short-term cash planning and emergency savings more critical.
Practical steps to take now
1) Audit your loan accounts
– Log into federal and provincial aid portals and your loan servicer’s site. Look for recent interest charges, balance changes, or unexplained transactions. – Download or screenshot statements, payment histories and any messages from servicers; timestamp everything.
2) Dispute and escalate if needed
– If you find an error, contact the servicer immediately and file a written dispute via email or the account portal. Request a timeline and written confirmation of the correction. – If the response is slow or incomplete, ask for a supervisor, contact the servicer’s ombudsman, and consider filing a complaint with your provincial or federal consumer protection agency.
3) Keep meticulous records
– Save correspondence, screenshots and receipts in a dated digital folder (or a physical file). Note the names, dates and outcomes of every call or message.
4) Reassess your cash flow and emergency savings
– Aim to build or replenish an emergency fund that covers several months of essentials before investing in higher‑risk assets. – Use a competitive high‑yield savings account for your emergency money—choose one with transparent fees and easy access. – Create earmarked “sinking funds” for predictable costs (tuition installments, textbooks, rent deposits) to avoid short-term borrowing.
5) Automate and review regularly
– Designate one account for loan-related transfers and set up automatic payments to reduce missed payments and posting errors. – Schedule monthly or quarterly reviews of your accounts so surprises are caught early.
Two recent moves have shifted the short-term landscape for student loans. First, a systems glitch briefly posted interest to some federal SAVE-plan accounts during a period that should have been interest-free. Second, Ontario unveiled a redesign of OSAP that trims grant support and leans more heavily on loans. If you’re on federal student aid, relying on OSAP, or planning to attend post‑secondary school in Ontario, these developments matter.0