OSAP does not cover the entire cost of education. In fact a student who relies solely on OSAP is required to live well below the poverty line. Students eligible for OSAP can only receive a maximum of $11 900 from OSAP. As you may or may not be aware, the Ontario Student Opportunities Grant (OSOG) applies to any student who receives more than $7000, so in effect it works as a debt cap. There is no doubt that OSOG is an amazing tool for access.
However it is this gap between the $11 900 cap of OSAP and the costs of education. For an independent student living away from home, the estimated true cost of education is approximately $17 400 (CMSF). The poverty line for a single independent individual in Waterloo is approximately $18 147 based on Low Income cut offs (OWR).
What does this mean?
There is a significant gap between the amount granted by OSAP and the amount actually required for a student to live and study in Waterloo. The gap is approximately between $5500 and $6200.
Well that is all fine and dandy, students can simply find employment during the 4 month break that they are not in school. Or can they?
This summer the student unemployment rate reached an all time high of 20.9% (CBC). So if one in five students are unable to find employment over the 4 months of summer, then how are students to address this gap?
Well they can just work while they study right? Unfortunately that is not a reasonable solution either, and it is because of a specific clause in OSAP.
OSAP limits the amount of income that a student can attain to $50 a week. If a student earns over the $50 a week threshold, OSAP will actually “claw-back” their funding. So if a student receives the maximum amount of OSAP and earns $400 in the month of October, then OSAP will effectively take back $200 of the loan.
So what are the numbers?
Well a student who receives the full amount of OSAP and is able to earn the full $50 a week for the approximately 34 weeks of school, will have available a grand total of $13 600. A short fall of at least $3800.
Our OSAP system is flawed, and our students are suffering the consequences.
Kory Preston
Vice-President of University Affairs
Wilfrid Laurier University Students’ Union
It’s amazing when stated like this how students actually graduate. I myself am currently trying to attend school, and have the dilehma of not only supporting myself, but trying to get a better career also. It’s hard to overcome the costs… and very discouraging. People of this country, both youth and adult alike are trying to better their education not only so that they can have a job that they are proud of, but also so that we can make a better Canada. I look to other countries where Education is payed in full to students by the government, and only owed if the student fails their education. I truly hope for a better system for all of Canadas citizens. I know we are capable of doing this… the time is when. Thank you for posting this. I will try to keep my faith in these times.