Universities across Canada advocate for greater financial aid
In 2020-2021, the average tuition for full-time undergraduate programs across Canada is $6,580 per year. 52 per cent of students graduate with student debt and an average student has a total of $28,000 in debt when they graduate.
52 per cent of students graduate with student debt and an average student has a total of $28,000 in debt when they graduate.
Student debt in Canada has been deemed a crisis by many. In 2018, Canadian students collectively owed over $28 billion in student debt.
The McMaster Students Union is one of the student unions that have joined in to work on the Debt Free Degree campaign, advocating for more accessible and affordable post-secondary education in Canada.
This campaign is led by the Undergraduates of Canadian Research-Intensive Universities and the University Students’ Council at Western University.
Other student unions that are also taking part in the campaign include the University of Toronto Students’ Union, Students’ Society of McGill University, Waterloo Undergraduate Student Association and more.
These nine student unions represent students of the U15 group of Canadian research intensive universities. Collectively, the student unions represent over 250,000 students.
The campaign is calling for Prime Minister Justin Trudeau and Minister of Employment, Workforce Development and Disability Inclusion Carla Qualtrough to take action.
Mackenzy Metcalfe, vice president of external affairs at Western’s University Students Council and chair of UCRU, said that this would put grants at a total increase of $1200 per student for the 2020-2021 federal budget.
Policy recommendations from the campaign include doubling of investments in Canada Student Grants from what was provided in 2019. Mackenzy Metcalfe, vice president of external affairs at Western’s University Students Council and chair of UCRU, said that this would put grants at a total increase of $1200 per student for the 2020-2021 federal budget.
This amounts to roughly $1 billion from the government. Metcalfe also noted that this was one of the promises made by the Liberal party during the 2019 election. This increase in grants would apply to all students eligible for financial aid.
“Investments in students are investments in the future. Students are really going to make up the workforce of tomorrow and increasing funding for student financial aid will undoubtedly see exponential return in the next couple of years,” said Metcalfe.
“Investments in students are investments in the future. Students are really going to make up the workforce of tomorrow and increasing funding for student financial aid will undoubtedly see exponential return in the next couple of years,” said Metcalfe.
MSU Vice President (Education) Ryan Tse declined an interview but wrote in an email statement that the MSU is excited to work on this campaign.
“The Debt Free Campaign [gives] students the opportunity to share their stories and call on the government to help make postsecondary education more accessible and affordable,” wrote Tse.
In previous years, UCRU had advocated for the transfer of federal tuition tax credits to student grants. Currently, the recommendation for the federal government to transfer tuition tax credit funds to upfront grants is also an MSU policy.
However, the Debt Free Degree campaign had decided not to specify federal tuition tax credits as a source of funding for student grants, but simply advocate for an increase in grants.
“UCRU still believes that tax credits from tuition should be relocated to upfront grants for students, however, during our past few lobby weeks, UCRU received feedback from the government about the proposal. We heard from multiple sources in government that they were not interested in making this change to the tax credit system. However, we did hear that they were interested in supporting students through student financial aid,” Metcalfe explained.
Although recommendations from the campaign ultimately do not eliminate student debt, Metcalfe said that having a larger proportion of financial aid as grants rather than loans will help decrease the amount of accumulated debt.
Aside from an increase in student grants, the campaign also recommends a two-year grace period on all federal student loans. Currently, federal student loans have a grace period of six months.
In other words, students have six months following their study period with no accumulation of interest on their federal student loans. Aside from finishing their final school term, students are also required to repay loans six months after they leave school, take time off school, or transfer from full-time to part-time studies. After those six months, students are expected to begin payment and interests will accumulate.
In Ontario, financial aid for students is regulated by the Ontario Student Assistance Program. OSAP incorporates both federal and provincial student loans and grants.
On a provincial level, student loan requirements differ depending on the province. Students in Ontario are not expected to start repaying their provincial student loans until after the first six months, but their loans do accumulate interest during that period of time.
Across social media, the campaign shares various infographics comparing the average amount of student debt to other various items of the same monetary value such as 112 pairs of AirPods, a Honda Civic, 233 years worth of Netflix subscriptions and 9 million cups of coffee.
$28,000. That's the amount of debt an average student has when they graduate. You can buy a lot with $28,000. Paying off student debt shouldn't be one of those things. It's time for a change - alongside @UCRU_Can, we're pushing @JustinTrudeau & @CQualtro to take action. (1/2) pic.twitter.com/FbeJu13B5J
— McMaster Students Union (MSU) (@MSU_McMaster) November 6, 2020
Students were encouraged to join the movement by writing a postcard to their local member of parliament. A Google form at www.debtfreedegree.ca was available for students to fill out and UCRU will send the postcard on the student’s behalf.
Students were also asked to spread the word by sharing posts with the hashtag #DebtFreeDegree on their social media and provide UCRU with feedback by emailing info@ucru.ca.
The MSU is working alongside @UCRU_Can and Student Unions across the country to advocate for accessible, affordable post-secondary education in Canada, and a #DebtFreeDegree. Learn more about our fight for Debt Free Degrees at https://t.co/t0I4CFpbCP. (1/3) pic.twitter.com/5o9GvsngPy
— McMaster Students Union (MSU) (@MSU_McMaster) November 3, 2020
The campaign ended on Nov. 16 and Metcalfe stated that over 200 students had shared their feedback. These student concerns will be presented to federal policy makers during UCRU’s annual Federal Lobby Week. This year, the federal lobby week is scheduled from Nov. 23-27.
By Esra Rakab, Contributor
“University is a learning experience, it’s okay to fail.”
These words that are intended to comfort me echo through my mind at every instance of academic hardship. University is often advertised as a place for learning and self-discovery, but this narrative often only applies to privileged, higher-income students. As an immigrant student from a low-income background and challenges with mental health, I’ve always been perplexed as to how this wasn’t just a privileged oversimplification of the emotional, physical, and financial burdens that often accompany enrollment in university for students of lower income. After all, when students who are well-off fail courses or decide to pursue additional years of education, their families can often support that decision financially. On the contrary, a student struggling similarly with their education would not have that support to fall back on. With little support, low-income students must navigate an education system designed for students without such pressures and financial difficulties, and are thrown into a cycle where there is seemingly no escape.
Even with the Ontario Student Assistance Plan, numerous low-income families struggle to meet the yearly cost of university to invest in their future. OSAP is unforgiving of students who, often for valid reason, fall below their academic standing requirements. OSAP-assisted students often face familial, personal or financial challenges, which can manifest as academic hardship, since students lose the capacity or time to devote to their studies. Rather than supporting students in such extenuating circumstances, the institution punishes them through academic probation and OSAP reductions or cuts. What implication does this have on the well-being of low-income students, who are pressured to excel in university and graduate as soon as possible, only to be thrown into an increasingly competitive job market? While their debt accumulates and while finding employment post-undergraduate becomes increasingly difficult, the pressure to graduate quickly heightens.
As much as I desperately want to advocate that it’s okay to fail and learn from our mistakes, I have experienced whirlwinds of anxiety in thinking that my mental health might set me back a year to prolong my education or increase my loans and costs.
As a result, any effort to keep my grades sufficiently “competitive” came at the cost of my well-being. Despite this, I could not succumb to the exhaustion and anxiety because the consequences of performing poorly in school would be too great to bear. Institutionally, we are thrown into a cycle where we fall thousands of dollars in debt in hopes of finding a job, yet our education may become jeopardized while we try to stay afloat. Low-income students often also work part-time to help pay fees, but the time commitment comes at the cost of their education; students are locked into positions where their ability to meet standards of academic performance is hindered. Paradoxically, we may come out of university even more financially burdened than when we started, and must find a way out. This is a challenge that higher income students usually do not have to consider seriously, often allowing many of them to enjoy and excel in their education with little financial burden.
I cannot advocate that our grades don’t define us without acknowledging my hypocrisy when I criticize myself for falling short. We’re given little guidance on what to do with failure and how to succeed despite it; The only students who share their marks are “straight A” students; the only students who share their work experience share what positions accepted them, rather than what rejected them. The perspective skews towards one of communal success, while students who are struggling are left on the sidelines.
While individuals can seek support services, like by taking loans or seeking therapy (which is also paradoxically expensive), the solution needs to target the system. Changes in the university structure, financial aid, student support and a greater focus on permitting work-life balance may provide us with stepping stones, but these inherent inequities that lead to disparities in students’ well-being and success need to be addressed by institutions, the Ontario Student Assistance Plan and students benefiting from this systemic privilege.
I’m sick of falling prey to this system. For once, I want to be able to say, “It’s okay if we fail, we can learn from this,” and truly, genuinely mean it.
On Jan 17, the provincial government announced plans to change the Ontario Student Assistance Program and cut tuition by 10 per cent.
The OSAP changes include requiring students to take out a loan when receiving an Ontario Student Grant, lowering the threshold to receive financial assistance, and eliminating the six-month interest-free period after graduation.
On Jan. 31, more than 75 student associations across Canada released an open letter demanding the government reverse the changes to OSAP.
Since the announcement, multiple protests have been held across the province, including in Hamilton.
Students at McMaster are also being affected by the changes, with more than 17,000 full-time students having applied for OSAP.
Many students are concerned about the shift in financial assistance towards loans instead of non-repayable grants.
First-year social sciences student Bryce Lawrence does not get money from her parents for tuition and says she would not be able to go to school without receiving grants and loans through OSAP.
This past year, Lawrence qualified to receive a higher proportion of grants compared to loans. Going forward, she will receive more money in loans and less in grants.
“The 10 per cent tuition decrease is nothing compared to the amount that we are not going to be getting anymore and it is going to be harder for a lot of students,” Lawrence said.
During the school year, Lawrence works three days a week, with the money going directly to basic expenses like groceries, gas and her phone bill.
“I worked hard in high school to get here and I need that money to get myself through it so that in the future I can get myself a good career that will help support a family,” Lawrence said.
Looking forward to next year, Lawrence says the money she gets from OSAP probably will not be enough to cover additional costs on top of tuition.
“It’s just frustrating,” She added. “It is going be weird not having the amount of money I need. Literally nothing is free in school. It is so expensive, and once the money goes into my tuition, I will not have enough to pay for my textbooks and stuff.”
Second-year political science student Zack Anderson said the elimination of the six-month interest-free period is especially harmful.
“It is already stressful enough once I do graduate to try and find a stable income, but I always kind of knew that that six-month cushion was going to be there for me and now that rug’s been pulled out from under me,” he said.
Anderson has relied heavily on OSAP. However, even with OSAP, Anderson still struggles to cover school and living costs beyond just tuition.
This year, he was forced to take a reduced course load and work three jobs to pay for tuition and living costs.
Over the summer, Anderson was working 70-hour weeks to save up for school.
“I have had to take out loans off the bank, I have maxed out credit cards before, done all these kinds of things to try to survive and you take it day by day, week by week,” Anderson said.
While there have yet to be any announcements since Jan. 17, the Ford government’s plans are expected to be in place for the 2019-2020 academic year.
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The end of reading week and the return to midterms and papers is never pleasant. However, the end of first week back from the break for Ontario universities was punctuated with a surprise from the provincial government. With the release of the budget for the upcoming year, the province introduced a free tuition policy for low-income students.
According to the budget, students from families with a collective annual income of $50,000 or less are entitled to a grant that covers the average cost of tuition in Ontario. “If you're a student coming from a low-income family and you're paying average or below-average tuition, that's where that free tuition designation comes from,” explained Spencer Nestico-Semianiw, VP (Education) of the MSU, and President of the Ontario Undergraduate Student Alliance. For university students, that grant is worth a little over $6,000 a year while college students will see a grant of around $2,000.
The money required to fund this initiative is already being used within the postsecondary education sector. The government is repurposing several smaller grants, including the Ontario Student Opportunity Grant, the Ontario Student Access Grant and the 30 percent off tuition grant. However, the majority of the funding comes from the elimination of the tuition and education tax credit, something OUSA has advocated for over the course of the last decade.
“That was something that we are absolutely ecstatic about because we're now using the money that was previously used for tax credits, which wasn't up-front, it was going more towards higher-income families and students who didn't need it and so now the money's being repackaged and put into the hands of students who need it most,” said Nestico-Semianiw.
For long-term advocates of affordable tuition, the new budget marks a significant victory.
“These were recommendations that OUSA has clearly had in our policy papers for a number of years and we've seen a large number of those recommendations in this budget … For any student that was benefitting under the 30 percent off tuition grant previously, they are still going to be receiving at least the same amount of money now and the students who need it the most are going to be benefitting even more,” explained Nestico-Semianiw. He added that the OUSA’s advocacy week in December launched a renewed interest in discussing tuition in the province.
Despite the perks, the free tuition plan has left many skeptical. Some articles published misleading headlines implying the total erasure of tuition, and others raised the concern that the constant inflation of tuition means that the $6,000 calculation will likely be inaccurate just a few years into the future. The calculation of the grant also only considers the base price of tuition. Universities and colleges require students to pay mandatory fees beyond the cost of classes, including books, student union membership fees and living expenses.
Additionally, the new grant is calculated based on the average tuition for students in general arts and science programs, meaning thousands of students, such as those in engineering programs whose parents make less than $50,000, might still have to cover some of their own tuition depending on the amount of money they are granted.
“These were recommendations that OUSA has clearly had in our policy papers for a number of years and we've seen a large number of those recommendations in this budget."
Despite the concerns that have been raised, Nestico-Semianiw stressed his excitement over the policy changes. “To be completely frank they're absolutely fantastic,” he said. “Obviously [OUSA is] going to continue working with the government to make sure that tuition is affordable for students and that it doesn't outpace what we've seen in this budget … [but] I'm optimistic that we'll be able to work so that the next tuition framework doesn't lessen the impact of these changes but that's a conversation that still has to happen.”
While the new tuition policy is something for OUSA to be proud of, work remains to be done. The organization is currently occupied with helping the Ontario government finalize the specifics of the new grant. This will be followed up by more work on the new tuition framework, a task OUSA began to work on in January — a letter-writing campaign asking for a tuition freeze was one of their first advocacy efforts related to the framework.
For his part, Nestico-Semianiw thinks these are positive changes and hopes that his successors in the organization will continue to advocate for affordable tuition. “I think this opens up another very good conversation, but I think the next student executive will have to have those conversations too.”
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