Victoria Silman | News Editor
Featured Image: The provincial government announced changes to OSAP and tuition, impacting loans, ancillary fees and tuition costs. | Courtesy of Pixabay
The provincial government is making changes to the way post-secondary finances are handled, beginning as soon as this fall, impacting OSAP repayments, grants, ancillary fees, and tuition costs.
This past week, the Progressive Conservative (PC) government announced they would be making financial changes to the post-secondary education system. While tuition is set to be reduced by 10 per cent for the 2019-2020 academic year, and is set to be frozen at that rate the following year, universities will be required to bare the brunt of the costs associated with these changes.
According to MPP and Parliamentary Assistant to Minister Merrilee Fullerton, David Piccini, universities won’t be as affected as it may seem, despite the tuition cuts.
“What we hope to achieve is relief for students, putting students first, and making post-secondary education affordable for students. Since 2010, tuition has skyrocketed, and Ontario has the highest tuition rates in the country,” he says.
“The 10 per cent deduction to students doesn’t correlate to a 10 per cent budget cut to the university—this is estimated at between two and four per cent.”
The grant program established by the previous Liberal government, which made post-secondary education free for low-income students, is being restructured by the PCs.
According to Piccini, the grant program is being rebuilt and will primarily benefit students whose families earn between $50,000 and $150,000 per year.
“We said this is going to be needs-based, and if your family income is under $50,000, you’re still eligible for 90 per cent of your tuition in grants. As income increases, the percentage of grants to loans will decrease. One is still eligible for grants if they are earning $150,000, but at a lesser percentage. We think that is fair to maintain the integrity and the sustainability of the system,” Piccini says.
He continues: “We’re not getting rid of grants at all. We’re restructuring the system to be sustainable—we need to have a system that is there for future generations.”
Students have expressed concerns regarding the fact their parents income will determine their financial aid from OSAP, regardless of whether or not their parents actually assist them financially.
For students who require financial aid and whose families earn above the provincial allowance, Piccini recommends contacting their MPP to discuss possible routes for solutions.
Another major concern among students is the alterations to the six month interest-free grace period, which the provincial government has nixed.
Piccini says the change comes to coincide with federal repayment standards. “The interest will apply on day one as it does with the federal program. Federally speaking, this is how it has always been—interest accrues upon graduation, and we’ve taken steps to align ourselves with the federal government.
“If this format is serviceable at the federal level, then it should be serviceable at the provincial level as well,” he says.
Third-year interdisciplinary social studies student, Kim Ly, has expressed her frustrations regarding the changes, particularly due to her status as a low-income student.
“The grace period was implemented to allow students to settle after finishing their studies. It gives them time to get back on their feet and get their finances in order,” she says.
Fourth-year health informatics student, Araarsi Abdurahman echoes Ly’s concerns, stating: “They’re making it difficult to take an education—this affects more middle- to low-income students rather than high-income students.”
Responding to these concerns, Piccini outlines the Repayment Assistance Program, which students earning under $30,000 a year are eligible to apply for. “Someone earning under $30,000 per year has been classified as unable to repay the debt. Students who need to can apply for this program,” he says.
As for ancillary fees, the government is restructuring what is mandatory and optional for students, in hopes of cutting up to $2,000 in unnecessary student fees.
According to Piccini: “We’re working with schools, student groups, and administrations on ancillary fees. Health and safety is non-negotiable; those fees have to be included. We’re working on guidelines going forward and we’re always happy to engage students. There is no ‘one size fits all,’ which unfortunately we’ve started to see with all these mandatory fees that were forced upon and did nothing to increase students’ experiences.”
Chief Spokesperson and Director of Media Relations for York, Barbara Joy, says the university is still waiting on further information from the provincial government before they can provide a statement to the community about the changes.
“York is currently considering the impacts of the provincial government’s post-secondary education announcement made last week and we expect to receive more details in the coming days and weeks,” she says.
