The provincial government has announced that universities will be allowed to increase tuition two per cent a year for the next three years, ending nearly seven years of the tuition freeze.
The announcement comes alongside changes to OSAP, as well as a reported $6-billion in investment into the post-secondary education sector over the next four years.
What does Carleton say?
Carleton University, which reported a $32 million deficit for the 2025-2026 academic year, has welcomed the changes to post-secondary funding.
“New operating funding will help stabilize higher education in Ontario and reinforce the critical economic and societal role of colleges and universities,” Carleton provost L. Pauline Rankin said in a statement.
The university also said it supports the changes made to tuition increases.
“The announced adjustments will provide greater predictability and support responsible long-term planning,” the university said in a statement to the Charlatan.
While Carleton is waiting to hear its share of the announced funding, the university said its issues will not be completely fixed.
“It is, nevertheless, already clear that while this funding will bring some welcome relief, it will not resolve Carleton’s significant financial challenges,” Rankin said.
What does CUSA say?
Aidan Kallioinen*, vice president for student issues at the Carleton University Students’ Association, said the changes are welcome at the institutional level.
“We’re glad to see the province is recognizing the importance of stable funding for post-secondary institutions,” he said. “We know the challenges in the sector and the role that funding plays in maintaining the academic quality that students have come to expect.”
But Kallioinen said the changes to tuition will impact student finances.
“Modest increases, even what the government is proposing, can add up over someone’s four-year degree,” he said. “Any additional expense a student incurs is going to be felt immediately, as well as in the long term.”
However, the CUSA leader said he realizes Carleton is in a difficult position.
“We have to acknowledge as a student association that these institutions are struggling when you’re not allowed to raise tuition in any respect,” he said.
“It impacts the kinds of programs that people have at Carleton, the kinds of degrees they can get, and the services that [students have] come to rely on.”
What do economists say?
José Galdo, professor of public policy and economics at Carleton, said the university has been facing three core problems that have fed into Carleton’s financial issues.
A freeze in domestic tuition brought in 2019, immigration caps spurring a decline in international student enrolment and inflation have all fuelled Carleton’s massive deficit, Galdo said in an email.
Galdo called the university’s situation “unbelievable.”
“It is like any business that suddenly loses several of its best-paying customers due to external regulations, faces higher wages and supply costs bills due to inflation, but is not allowed to increase its product prices because of price controls.”
While students may be wary of the incoming increases to tuition, Galdo said it is necessary to balance the budget.
“Here we are talking about a planned, gradual two per cent annual increase in tuition over the next three years. It is not an abrupt change, so I do not think it will significantly affect students’ finances,” he said.
Galdo stressed that while students must take on more of a financial burden right now, universities must avoid reinforcing inequalities.
“We must be clear that higher tuition must be paired with targeted grants and means-tested loans, so that students’ ability to pay does not determine their access to university.”
*Aidan Kallioinen has previously contributed to the Charlatan.
Featured image by Simon McKeown/the Charlatan
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