The Liberal government is making good on a campaign promise to take 30 per cent off the average cost of tuition.
More than 300,000 undergraduate students are eligible for the new grant this year, and today they can begin applying online on the Ministry of Training, Colleges and Universities website.
Students enrolled in the Ontario Student Assistance Program — about half of those who are eligible for the grants — will be automatically considered and don't have to apply.
The province says university or college degree students will save $1,600 over a full school year, while college diploma and certificate students will save $730.
With this school year half over already, the savings will be $800 and $365 respectively for the second semester.
To qualify for the grant, students must be less than four years out of high school and their parents' gross income can't surpass $160,000.
Opposition parties and the Canadian Federation of Students say the Liberals should reduce tuition fees for everyone.