OSAP changes ‘disappointing’ as students face ‘cost-of-living crisis’

Students are speaking out after changes were made to OSAP. CTV Windsor’s Robert Lothian reports.

Changes to how post-secondary students receive financial assistance will create larger barriers for students, warns the University of Windsor Students’ Alliance (UWSA).

The Ford Government announced a new structure for the Ontario Student Assistance Program (OSAP) on Thursday, which will require students to repay a larger portion of the financial assistance they receive.

UWSA President and CEO Husam Morra tells CTV News that a new formula will make education less equitable for those intending to enroll at a college or university.

“I don’t know if affordability has been taken into consideration, because at this time, students are in a cost-of-living crisis,” Morra said.

Starting in September, OSAP grants will be capped at 25 per cent, and a minimum of 75 per cent of funding will come through loans.

Students can currently receive up to 85 per cent of their assistance through grants, and 15 per cent in loans.

Morra says it’s “disappointing” that students will have a greater financial burden placed on their shoulders.

“[OSAP] allowed a lot of students to be able to attend universities because the grant system awarded them that money, which obviously you didn’t have to pay back after they graduate,” Morra explained.

According to the province, OSAP loans, unlike traditional loans, only start accruing interest after graduation, and typically have lower interest rates.

The reality for many students, Morra says, is graduating with a larger amount of debt attached to their name.

The UWSA is calling on the Ford Government to reassess the changes to OSAP and collaborate with student-led stakeholders to find a better approach.

“A lot of decisions are going to have to be made by students in direct relation to this, whether that’s their life plans, whether that’s what they want to pursue, whether that’s where they’re living,” Morra explained.

As part of the government’s overhaul of post-secondary funding, $6.4 billion is expected to be invested in the sector over the next four years.

Morra says they “welcome” any funding to improve institutions which have been under financial pressure. The students’ alliance president notes they are waiting to ensure the funds will be doled out in an “equitable” manner between schools.

As part of sweeping changes, a tuition freeze is coming to an end, and a two per cent cap will be implemented on increases.

While understanding of the need for sustainable growth, compounded with the OSAP changes, Morra says students are bearing much of the financial weight.

“So, are they also seeing a significant change in student experience or are they... shouldering that increase in cost of education?” she asked.

Over the course of the tuition freeze, Morra says some programs received permission for one-time tuition hikes of seven per cent. As a result, students in those faculties are now on the hook for another increase.