One of OUSA’s core principles is that financial assistance must be available to all who need it to ensure equitable access to post-secondary education. The distribution of aid to all students in need is one of the most important goals that should underlie the student financial assistance system. However, the Ontario Student Assistance Program (OSAP) is currently falling short of meeting this goal, due to qualification rules that bar many of the students with the greatest need from accessing the program. Facing budgetary deficits in the late 1990s, the provincial government disqualified certain groups of students from receiving assistance for their post-secondary studies. This resulted in a rapid 40 per cent decline in the number of students receiving OSAP as groups such as part-time students and students with imperfect credit histories found themselves shut out of the system.
With a new investment of $1.5 billion for financial assistance as part of the Reaching Higher Plan, the Ontario government has expanded aid to some of the most disadvantaged groups who require assistance in order to attend a post-secondary institution. However, despite the increased funding for financial aid, the eligibility rules for OSAP have remained unchanged. While there are several ineligible groups that are of concern to students, the highest priority is extending eligibility to part-time students.
Ontario students are not eligible for OSAP if they take less than 60 per cent of a full course load. This policy replaced the previous regulation prior to 1997-98 that made any student taking at least 20 per cent of a full course load eligible. Part-time students taking between 20 per cent and 59 per cent of a full-time course load can access some assistance through the Canada Student Loan program, however the total outstanding loan is capped at $10,000 and students must pay interest on the loans while in school. In 2007-08, only 1,436 part-time students received a loan, with an average value of $1,948. The part-time student loan is a miniscule proportion of the federal loan program; these borrowers accounted for only 0.4 per cent of all Canada Student Loan recipients.
Meanwhile, part-time students make up a significant portion of the Ontario student body. In 2008-09, over 18 per cent of university students in Ontario were studying on a part-time basis. While there is little research on the demography of Ontario students studying part-time, it is known that women are more likely to enrol part-time and that a majority of students with dependent children with children under the age of five study part-time. Students’ reasons for pursuing studies part-time vary, but include time commitments to employment and family, having a disability, financial constraints, and choosing a more manageable workload, amongst others.
By taking a lighter course load, part-time students are assumed to have more time to work and earn an income, reducing their need for financial assistance. However, this assumes that part-time learners earn sufficient income to support themselves and any dependants, as well as pay for their tuition and other educational costs. The policy therefore creates particular financial difficulty for students with low incomes that cannot meet their costs through employment income, as well students with dependants who cannot earn enough to meet their financial needs.
A part time student is not always synonymous with full time employment. The purpose of the OSAP needs assessment is to determine if a student has sufficient resources to attend university. If part-time students are indeed working enough to meet their financial needs, then they will not be eligible to receive OSAP regardless of changes to the minimum course requirements. Assuming that they work enough to have sufficient resources to pay for a university education implicitly assumes that students choose to study part-time, when in fact many students with family responsibilities are unable to take on full-time studies or work. Furthermore, by not allowing part-time learners to access OSAP, the government also prevents these students from accessing numerous other forms of need-based assistance, including work-study programs, as well as many scholarships and bursaries.
As a result, part-time learners are turning to private loans to fund their education at a higher rate than full-time students. According to the Canada Millennium Scholarship Foundation, 36 per cent of part-time students reported using private loans, compared to 20 per cent of full-time students. These borrowers tend to face higher interest rates and faster repayment terms, and do not receive interest relief provided in the public system.
Another significant issue of consideration is those that switch from full-time to part-time status. Students who have withdrawn or failed a course must repay the financial assistance disbursed to them for that year of study, and also begin repaying their student loans after six months. This situation may occur for a variety of academic reasons, including poor performance in a class or changing to a more manageable work load. It could also occur for personal reasons such as illness or family tragedy. For students who switch to part-time status, the withdrawal of financial support from OSAP and the demand to return disbursed loans can cause distress for the student.
Students who are enrolled on a part-time basis represent a broad cross-section of the post-secondary population, but count a large proportion of adult learners, students with dependants, and other under-represented groups, who are often unable to dedicate the time and resources required to study full-time. Denying these students access to financial assistance amplifies the barriers that they face in reaching their goals. This will become even more pressing with the forthcoming development of the Ontario Online Institute, as most on-line learners study on a part-time basis and will require additional financial support.
Students welcome the steps the province has taken toward addressing this issue, including the establishment of the $500 Part-Time Student Grant, but stress that more will need to be done over the long-term to reduce the financial barriers for part-time students. Reaching the Premier’s target of 70 per cent post-secondary attainment in the province will require a concerted effort to bring more underrepresented students into our post-secondary institutions. Extending OSAP eligibility to part-time students could go a long way to achieving that goal.
-Sam Andrey
OUSA Director of Research & Policy Analysis
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