Many Ontario post-secondary students are facing a new financial reality as government grants shrink and student loans take their place, according to CBC News. The broadcaster reported that the previous grant maximum for low-income students was 85 per cent, but that figure has now dropped to just 25 per cent, with some students not receiving grants at all.
The shift means more of the cost of school is landing on students as debt they will eventually have to pay back, CBC reported. The broadcaster framed the change as a significant reduction in the share of aid that comes as grants — money that does not need to be repaid — compared with loans that do.
To illustrate the impact, CBC spoke with a second-year economics and public policy student at the University of Toronto. The broadcaster said that last year she received a combination of loans and grants, but that this year her aid is made up entirely of loans, a jump to 100 per cent borrowing.
The student told CBC that the change forces her to think much more carefully about her finances. She said she has to be more meticulous and far more cautious about her spending, and to think twice about the decisions she makes at a time when schooling should be a student's priority.
According to CBC, students are worried not only about their undergraduate degrees but also about the future burden of fees for specialized post-graduate programs. One student who is trying to go to law school said getting into such fields requires a great deal of additional schooling, and that knowing hundreds of thousands of dollars in debt awaits can weigh heavily on students pursuing their educational dreams.
Some students told CBC that if they were not already enrolled, they might think twice about even applying to some of these post-secondary programs. The broadcaster noted that the concern is sharpened by the fact that OSAP loans start accruing interest six months after graduation, adding to the long-term cost of a degree.
CBC reported that offers and estimates for the upcoming school year are still rolling out across the province. The broadcaster presented the reduced grant levels as part of the financial picture Ontario students are now weighing as they plan for the year ahead.