Kanchi Uttamchandani | Assistant News Editor
Featured image: Increased student federal grants will soon start sparing you some change. | Photo courtesy of Cheryl DeWolfe
Post-secondary students returning to school this fall will be able to apply for new grants and loans under an improved and more flexible OSAP scheme.
According to the 2016 federal budget, Canada Student Grant amounts are set to increase by 50 per cent, resulting in an increase from $2,000 to $3,000 per year for full-time students from low-income families; $800 to $1,200 per year for full-time students from middle-income families; and $1,200 to $1,800 per year for part-time students from low-income families.
Additionally, the government has announced changes to increase the threshold for the Repayment Assistance Plan. Effective November 1 this year, graduates will not be required to repay their government loans until they start earning a minimum of $25,000 per year.
Student union leaders all across Canada have praised the new system as an avenue for improving access to post-secondary education and making it more affordable for working class students.
David Lindsay, president and CEO, Council of Ontario Universities, says university students currently receive almost $2 billion in financial aid through OSAP. The new system will provide a more accurate reflection of the actual cost of tuition in Ontario and encourage greater participation in post-secondary education.
Concerns persist about eligibility for such grants and the standard of income cut-offs used.
Karin Ghosh, second-year computer engineering student, thinks the initiative is a good idea, but feels it is limited to families earning the bare minimum income, and potentially excludes middle class students.
“Since the taxation is so high, even if you have a good yearly salary, the taxes cut that down significantly. It may be right above the line to qualify for the new grants, which can be unfair to most middle class families,” she adds.
As of 2016, average full-time tuition fees for domestic students are $7,102, while the average tuition fees for international students sit at $21,419.
