The Ontario government is making more changes to the Ontario Student Assistance Program (OSAP) via the 2018 provincial budget, according to the budget document.
A new OSAP program was already introduced in the 2017-18 school year where one-third of those who study full-time and receive OSAP were eligible for free tuition.
Now, the government is reducing the amount parents are expected to contribute to their child’s education, making it easier for students from middle-income families to qualify for OSAP.
“For example, a dependant arts and science student in a typical family whose parents earn $90,000 per year could receive an additional $3,200 in OSAP assistance (both loans and grants) because of these changes,” the document reads.
The changes also reduce the expected spousal contributions which also makes it easier for married students to receive funding.
Andrea Ordonez-Valverde, a second-year communication and media studies student at Carleton University, said the update “has especially rung true,” as a student from a middle-income family.
“I’m not eligible for free tuition because my parents both work, so with the income that we have, it just wouldn’t make sense,” she said.
But, with the money the budget is setting aside, students like Ordonez-Valverde could be eligible for more OSAP assistance under the new provincial budget.
“I think they’re really fair in the way they’re helping people like me. My dad has three jobs and my mom has one, but instead of saying, ‘Oh she has two parents that work a lot,’ they still gave me the money, when they could easily have been like, ‘No you’re not gonna get any money,’ ” she said.
The government is also trying to “simplify” the payment process for college and university.
By partnering with Ontario post-secondary schools, the government is introducing net tuition billing for the 2018-19 school year. This means that students will receive one tuition bill that has already subtracted the amount of OSAP and other financial aid that has been given.
With the spending promises to OSAP and other sectors, the government is expected to run an $8 billion deficit.
Minjoon Lee, an economics professor at Carleton, said there are different views on running a deficit.
According to Lee, this means the government is spending more than what it’s collecting in taxes.
He said some of the traditional views believe that the increase in government debt, which leads to a current decrease in tax, will result in a trade-off between the current generation and the future generation.
According to Lee, this means that the current generation can benefit, while future generations can get hurt because they would need to pay back the taxes.
Lee said others don’t see that trade-off as negative, due to the government’s decision to invest money in a certain resource of value.
Nicholas Rowe, an economics professor at Carleton, said in an email that investing in education is usually good for the individual, but that “it doesn’t necessarily mean it is equally good for the economy as a whole.”
“Ontario needs to worry about its deficit and rising debt, especially since healthcare expenditures are expected to rise in the near future as the population ages,” he said.
Photo by Marieta-Rita Osezua
