The last few months have been busier than any other time in recent memory at OUSA, largely due to the introduction and implementation of the new Ontario tuition grant. One troubling aspect about the debate surrounding the grant is how isolated it has been to the grant program itself. What has been lost in a heated public discussion over eligibility is how this new grant will interact with existing financial assistance available through the Ontario Student Assistance Program (OSAP). Moreover, with the full implementation of the tuition grant scheduled for this coming September, the time is right to start examining it’s relationship with other grant programs, with an eye to making the system as seamless and understandable as possible.
For instance, almost none of the coverage of the tuition grant has mentioned that Ontario has had a grant program designed to reduce tuition for low-income students in place for quite some time: the Ontario Access Grants. Proposed initially by the Honourable Bob Rae during his review of Ontario higher education in 2005, these grants are currently only available to first- or second-year students from low-income families and are administered through OSAP. If a student’s parents’ net income is below the cut-off for the National Child Benefit supplement ($41,544 in 2011-12 for two-child family), the grant is worth up to 50% of their tuition, to a maximum of $3,000 per year. Students whose parents’ net income is above the cut-off for the NCBS, but below an income ceiling ($83,724 in 2011-12 for two-child family), can receive between 25% and 50% of their tuition covered through the grant. Last year, around one in five OSAP recipients (approximately 55,000 students) received the Ontario Access Grant at a total expense of approximately $96 million.
So if Ontario already has a grant program worth 50 per cent of tuition for some students, how does this interact with the new tuition grant worth 30 per cent of average tuition?
Currently, the government is not providing the new tuition grant to those students already receiving the Ontario Access Grants in excess of the new grant’s value. In other words, university students receiving $1,600 in Access Grant will not receive any additional grant funding from the tuition grant. This will be particularly confusing for those eligible for 25 per cent of tuition through the Ontario Access Grant and then a further 5 per cent off through the new grant. These students will undoubtedly be surprised when their additional aid only comes to an additional five per cent off tuition, though advertisements and media have been indicating that the value would be thirty.
Due to the reality that the new tuition grant and the currently existing access grants work in similar ways to reduce tuition, we suggest that the grant programs be harmonized. This harmonization could occur at no additional cost to the government.
For instance, current funds spent on Access Grants could be re-directed to create another tier of the tuition grant worth 50 per cent of tuition fees for those students with family incomes eligible for the NCBS (the same eligibility criteria as the Ontario Access Grants). The sliding scale that is currently used could continue for those above $41,544 but below the current threshold to receive 30% of average tuition fees ($50,350). Those above $50,350 net income but below the $160,000 income cutoff for the tuition grant would then receive 30% of average tuition fees. In essence, no student would receive any different more or less grant than currently, but it would be administered as one grant.
This move would accomplish a few important things. First, since the tuition grant program is available to non-OSAP students, it would open the Ontario Access Grant program to debt-averse students who are unwilling to take on student loans in order to pay for post-secondary education (due to the fact that Access Grants are only available to OSAP recipients). Studies have shown that debt-aversion is higher amongst low-income, Aboriginal and first generation students, meaning that this could extend assistance to high-need populations without forcing them into student debt. Second, the future of the tuition grant program has been imagined such that it would come directly off student tuition bills. Harmonization would allow the Ontario Access Grant money to come off tuition bills directly, increasing their visibility to students.
As the province moves towards a period of fiscal restraint, it will be more important than ever to utilize current resources effectively. Moving the Ontario Access Grants outside of the Ontario Student Assistance Program would be a tangible step towards opening an important program to students who may need it the most, without incurring significant additional costs.
The tuition grant program has been a huge step forward for non-repayable assistance, not only due to the size of the investment, but also the window it has opened to improvement of other programs.
-Chris Martin
Director of Research











