TORONTO - Ontario students looking for a break on the cost of their tuition are in luck starting Thursday. 

The Liberal government is fulfilling 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. 

"Getting money back is every student's dream," said Amisha Agarwa, a fourth year student at Carleton University. "Every penny counts."

Some disagree with the rebate.

"This isn't going to be anything that will stimulate the economy," said professor Adam Chamberland.

Students enrolled in the Ontario Student Assistance Program will be automatically considered for the rebate and won'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.

Those working towards a diploma or certificates will receive a total of 730 dollars.

But there are limitations.

To be eligible for the grant, students must be fulltime, less than four years out of high school, and their parents' income must be less than $160, 000.

Others exempted from the grant include international students and those who are not dependent on their parents.

With a report from CTV Ottawa's Stefanie Masotti