Ontario college and university students will see an average 5-per-cent tuition increase in each of the next two years, following a decision by the McGuinty government to stay the course on its fee policy.
The tuition hike – announced along with changes to student aid, including new interest relief – extends the guidelines used by the province for the past three years. It means any new tuition policy will not be implemented before the next election.
While some students welcomed the improvements to financial assistance, others noted the proposed tuition increases mean Ontario will remain the most expensive province for higher education.
The universities, for their part, said the new fees will not be enough to eliminate funding gaps that campuses now face.
“The reality for most institutions is that they are still going to make some cuts,” said Bonnie Patterson, head of the Council of Ontario Universities.
Ontario’s tuition announcement comes at a time when many schools across the country are looking for more leeway from governments to raise fees in light of mounting budget troubles.
In Alberta, major hikes in non-academic fees are on the table, and in Quebec – home to some of the lowest tuition fees in the country – there is talk of a major tuition hike in some quarters. Last month, former premier Lucien Bouchard made headlines when he called for higher fees, characterizing the province’s universities as “dangerously under funded.”
A government advisory group also called for tuition increases, and many will be watching Tuesday’s provincial budget for movement on the issue.
In Ontario, Ms. Patterson said the two-year tuition announcement will give all sides a chance to develop a long-term model. Last week’s provincial budget included an additional $310-million in annual funding to higher education to cover increasing student demand. That funding, plus the increase in fees, will leave most schools with a 2- to 3-per-cent gap in next year’s budget, she said. Some campuses will see a greater shortfall because of pension funding demands.
Student groups welcomed the improved financial aid measures, also announced, especially a new no-interest period for the Ontario portion of student loans for up to six months after graduation. The province also doubled to $100 the amount students can earn each week without affecting aid funding and made other changes to help part-time and married students.
But the timeline for the new measures – set to take effect Aug. 1 – means college and university students who graduate this spring will not qualify for interest relief.
“Every program has to have a start date,” said John Milloy, Minister of Training, Colleges and Universities. “This one is tied to the tuition framework, which is for the next two academic years.”
Mr. Milloy said the new interest relief, expected to cost the government $12.1-million this year, is a response to student demands given the tough job market. Under existing programs, graduates are not required to make payments on their loans for six months, but interest accumulates on their debt during that period.
“This is a really significant investment given the current economic environment,” said Dan Moulton, president of the Ontario Undergraduate Student Alliance.
Education consultant Ken Steele sees increases in Canadian tuition levels as inevitable, given the competing demand on government budgets from health care. “I think governments are naturally reluctant to do anything that is unpopular,” he said. “Universities are going to be crying louder and louder that they need more resources. I suspect tuition is the only place we are going to see any give.”
