News Release - March 8, 2006 

McGuinty Government Plan to Improve Quality and Access to Postsecondary Education (Ministry of Training, Colleges and Universities news release)

Ministry of Training, Colleges and Universities

Student Access Guarantee for Working Families

Toronto, March 8 /CNW/ - The McGuinty government is providing a student access guarantee that means no qualified Ontario student will be prevented from attending Ontario's public colleges and universities due to lack of financial support programs, said Chris Bentley, Minister of Training, Colleges and Universities.

"As part of our plan to improve quality and access, our government is making it easier for students from working families to attend postsecondary education - Ontario students will have access to postsecondary education based on their ability to learn and not their ability to pay," Bentley said.

The student access guarantee means that students in need will have access to the resources they need for their tuition, books and mandatory fees. Under the guarantee, the government will provide assistance to almost 200,000 students from lower- and middle-income families. Institutions that want to increase fees may do so only if two conditions are met: they participate in the student access guarantee, and any fee increases improve the quality of
programs.

"We aim to give students the best postsecondary education possible," said Bentley. "Through our Reaching Higher Plan, our government is investing in more spaces, increased student aid and improved quality.

"But more needs to be done to enhance quality," the minister added. "To achieve our goal, we need an additional contribution from students. For every $3 extra Ontario invests under Reaching Higher in postsecondary education, we are asking students to contribute $1."

The student contribution will come from a regulated tuition framework. Increases will be capped, predictable and linked to improvements in quality and access. Institutions will have more flexibility to set fees, but only within this capped, regulated and predictable framework.

Under the plan, average tuition increases for the coming year will be limited to about $100 for almost 90 per cent of college students and about $200 for almost 70 per cent of university students. Increases in tuition fees may vary, but the majority of undergraduate students will see increases below 4.5 per cent. Tuition will be allowed to increase by a maximum average of up to five per cent at each institution.

For professional, graduate and certain other programs, institutions may increase fees up to a maximum of eight per cent in the first year of study, but only if the institutional average is five per cent or less, the student access guarantee is in place, and the money buys improvement in quality. Increases will be limited to four per cent in subsequent years of study. "As part of the government's commitment to students and to ensure Ontarians get the best value for their investment in postsecondary education, our government is also creating the Higher Education Quality Council to monitor quality and access," said Bentley. "The council is an independent body that will help us ensure continued improvement of the postsecondary education system by monitoring quality in the sector, access to postsecondary education and the accountability of institutions."

Quality improvements and access for students will also be ensured through multi-year accountability agreements that every institution is required to sign. The agreement sets out the institutions' commitments to quality, access, affordability and will include the student access guarantee.

Improving the quality and accessibility of higher education are two goals of Reaching Higher, the McGuinty Government Plan for Postsecondary Education. Through the plan, the government is investing $6.2 billion more in the province's postsecondary system over five years - the single largest infusion of funds in the sector in 40 years. This includes $1.5 billion more for student aid. The McGuinty government has also created almost 75,000 more spaces since 2002-03 and is aiming to increase participation further. New government investments at colleges and universities are already improving quality through more faculty, better student services, and access to the best libraries, laboratories and equipment for hands-on learning. "We need to invest in our people. Our province's future depends on it," said Bentley. "This plan will deliver the investments, results and quality needed to ensure Ontarians have access to the best possible postsecondary system, and will finish their education capable of competing with anyone, anywhere in the world."

Backgrounder

McGUINTY GOVERNMENT MAKING HIGHER EDUCATION MORE ACCESSIBLE

The McGuinty government has announced a student access guarantee to help ensure no qualified Ontario student will be prevented from attending Ontario's public colleges and universities due to lack of financial support programs. The guarantee includes more student aid for low- and middle-income students. Through the Reaching Higher Plan, which was unveiled in the 2005 Budget, the government will invest $6.2 billion more in postsecondary education and training over the next five years. This includes $1.5 billion for student financial aid. The 2006-07 improvements made to student aid will benefit about 145,000 college and university students from low- and middle-income families. Overall, improvements mean that students can get more aid in the coming year, but their OSAP debt continues to be limited to $7,000 per completed year through the Ontario Student Opportunity Grant.

Since coming into office, the Ontario government has made a series of improvements to student aid. Students from middle-income families who used to have no access to student aid can now qualify for thousands of dollars of assistance and more student aid is being provided through up-front grants for tuition. In addition, the government will work with colleges and universities to better co-ordinate institutional and government aid programs in the coming year. A new website, to be introduced next year, will provide information about all the available sources of financial aid that individual students can qualify for in the institution and program of their choice.

2006-07 Changes to Student Financial Aid

In 2005-06, up-front grants were re-introduced to the OSAP program for the first time since 1992-93. These grants, known as the Access Grants, are helping low-income first and second year students to access postsecondary programs.

In 2006-07, the government will be further extending eligibility for Access Grants, to students from families earning up to about $75,000 per year - roughly the median income for Ontario families.

Students from the lowest-income families face the biggest access barriers and will still get the highest grants. The Access Grants that Ontario offers can cover up to half the cost of tuition for students from low-income families (incomes less than $36,440). If they are in first year, these students also can qualify for matching federal grants resulting in up to their full tuition being covered.

Students whose parents earn more - above $36,440 per year but below about $75,000 per year - will now be able to get grants covering from 25 to 50 per cent of their tuition. The percentage covered depends on how much their parents earn. The expansion of the Access Grants to middle-income families is expected to result in 27,000 more students being approved for grants in 2006-07.

For 2006-07, book and supply allowances will be updated. These costs have been frozen since the mid-1980s.

For example, arts and science text-book allowances will go up to $600 per year - a 54 per cent increase. Text-book allowances for specialized programs will increase by 138 per cent, to $1,050 per year. Updates to various supply allowances will also be made. Updated book and supply maximums will increase the amount of OSAP aid for over 138,000 students.

Multi-year Improvements to Student Aid

The deterioration in OSAP did not occur in one year, and fixing it will happen over several years. The improvements since 2003-04 are adding up.

2005-06

• Introduced Access Grants for first-year and second-year students from low-income families.
• Increased maximum assistance levels so that single students are eligible for as much as $2,550 more in student aid - a 27 per cent increase. This was the first increase in student loan maximums in over a decade.
• Reduced the amount of money middle-income parents are expected to contribute to their children's education. For example, a family of four, earning $70,000 with one child in university is saving about $2,000 - a 50 per cent reduction compared to what they were expected to contribute in 2004-05.
• Introduced an annual allowance for computer and computer-related costs of $500.
• Helped with loan repayments by increasing the income thresholds for interest relief by five per cent so that more graduates can qualify for this assistance.
• Ontario Trust for Student Support will make $50 million available every year to match private donations to colleges and universities for student aid endowment funds.

2004-05

• Reduced the amount of money parents are expected to contribute to their children's education. Before 2004-05, Ontario expected larger parental contributions than the federal government did, and expected parents earning as little as $30,000 per year to contribute.
• Considered students independent of parents after four years out of high school, rather than requiring they be out of high school five years before being considered independent.
• Helped with loan repayments by introducing a debt reduction in repayment program, which reduces debt to an affordable level for those who have long-term difficulties with repayment.
• Provided $100 million to create endowments at universities that provide fellowships for outstanding graduate students.
• Provided an additional $50 million to match private donations to college and university student aid endowment funds.

Change in Number of College and University Students
Qualifying for Ontario Student Loan Assistance
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% Change in Number
2003/04 2005-06 Receiving Ontario Aid

university college university college university college
80,597 49,224 97,010 57,410 20% 17%

Change in Number Enrolled at University or College
-------------------------------------------------------------------------
% Change in
Enrolments
2003-04 2005-06
university college university college university college
283,626 150,477 315,504 151,558 11% 1%

Number Receiving Aid from Ontario as % of Students
2003-04 2005-06
university college university college
28% 32% 31% 38%
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Access Strategy

As part of Reaching Higher, the government committed a total of $10.2 million this year - rising to $55 million by 2009 - to create a plan that helps to provide increased opportunities for access to postsecondary education and training programs for Francophones, persons with disabilities, Aboriginal peoples, and First Generation students who are the first in their families to attend a postsecondary institution.

The funding will be used to undertake research, new programs and outreach in order to improve participation in postsecondary education.

As part of the plan, the government has named advisory committees for each of the groups to offer advice to the Minister of Training, Colleges and Universities on how to achieve the government's goals.

Since 2002-03, postsecondary enrolment has increased dramatically. Through the Reaching Higher Plan to increase access for students, the government wants the trend to higher participation to continue to support the government's priorities for economic growth and prosperity. Statistics show that only 40 per cent of Ontario's 18 to 24 year olds attend postsecondary institutions, while the federal government estimates up to 70 per cent of all future jobs created in Canada will require some postsecondary education.

Increased participation at Colleges and Universities:
Full-Time Students
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Year Universities Colleges Total
-------------------------------------------------------------------------
2002-03 247,968 146,088 394,056
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2005-06 315,504 151,558 467,062
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Total increase in participation: 73,007
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Participation Rate of 18-24-year-olds
-------------------------------------------------------------------------
Year Universities Colleges Total
-------------------------------------------------------------------------
2002-03 21.9% 12.9% 34.8%
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2005-06 26.3% 12.7% 39.0%
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Backgrounder


McGUINTY GOVERNMENT INVESTMENTS EMPHASIZE QUALITY AT POSTSECONDARY INSTITUTIONS

Improving the quality of higher education, increasing access, and ensuring accountability are the goals of Reaching Higher: The McGuinty Government Plan for Postsecondary Education. The $6.2 billion in additional money being invested under the plan is the single largest investment in postsecondary education and training in Ontario in 40 years.

The Ontario government is moving forward with its plan to ensure the people of Ontario see results and real improvements for the Reaching Higher investments. In recent months, colleges and universities received $211 million under the Quality Improvement Fund based on the principle that every dollar will result in improvement and that institutions will be held accountable. To ensure this, all postsecondary institutions have signed accountability
agreements that set out commitments to quality, access and affordability. Students are already benefiting from improvements as a result of the new funding and focus on quality. New government funding is being spent to hire more faculty so that students will have more time with professors and other teaching staff. Institutions are also hiring more support and administration staff to offer better student support services, more tutoring, mentoring and counselling, and new programs to support students with special needs. Quality of the classroom experience for students is improving through access to the best resources possible such as more and updated labs, new IT equipment and expanded library acquisitions. All of these initiatives will lead to improved student success and higher retention rates in postsecondary institutions.

By ensuring a quality postsecondary education system, the government is supporting its goals for strong economic growth now and in the future. The McGuinty government believes it is not good enough to just stay the course on education quality, but that Ontario's institutions must strive to be the best in Canada.

Higher Education Quality Council of Ontario

To underline this belief, the government has enshrined the link between quality and postsecondary education in law through legislation that establishes the Higher Education Quality Council of Ontario (HEQCO). This independent body will ensure continued improvement of the postsecondary education system by monitoring quality in the sector, access to postsecondary education and the accountability of institutions.

A key part of the council's role will be to monitor and report on performance measurement, and guide the postsecondary education system towards improved quality. It will also monitor and make recommendations on the student access guarantee. The council will undertake research on quality, participation and access, and advise government on the best way to measure performance and institutional collaboration.

HEQCO will also help provide enhanced transparency and accountability in the sector through regular public reports on results flowing from the government's investment.

Tuition Framework

The Ontario government is establishing a new tuition framework, linked to improvements in quality and access. The new capped framework is regulated and allows for predictability. Institutions will have more flexibility to set fees, but all tuition fees will be regulated in public programs and will be tied to the Student Access Guarantee.

Under this plan, the government is asking students to contribute $1 for every $3 the government invests in postsecondary education to ensure colleges and universities have enough resources to provide the best education in Canada. Increased tuition fees will lead to better quality, improved learning environments and better access to postsecondary education.

University governing boards may choose to increase tuition fees by no more than a maximum, overall, average of five per cent at each institution. For the majority of programs, tuition fees will increase by less than this average rate. For example, university arts and science and selected undergraduate programs may increase by a maximum of 4.5 per cent in the first year of study and four per cent in other years.

College governing boards may choose to increase tuition in most programs by up to 4.5 per cent or $100 (whichever is greater) in the first year of study and four per cent for each year after that. Average tuition increases for the coming year will be under $200 for almost 70 per cent of university students and $100 for almost 90 per cent college students.

University graduate, some undergraduate professional programs, and high demand college programs may be increased by up to a maximum of eight per cent in the first year of study and four per cent in other years, but only if the institutional average is five per cent or less, the student access guarantee is in place, and the money buys improvement in quality. Students in the majority of undergraduate programs will experience tuition increases of less than 4.5 per cent.

Backgrounder


REACHING HIGHER IN POSTSECONDARY EDUCATION

Under Reaching Higher: The McGuinty Government Plan for Postsecondary Education, which was unveiled in the 2005 Budget, the government is investing an additional $6.2 billion in Ontario's universities, colleges and training programs and student aid over the next five years. This historic, multi-year investment in postsecondary education - the most significant in 40 years - represents a 39 per cent increase compared to the 2004-05 funding base.

With the Reaching Higher Plan, the people of Ontario will see improved access and higher quality in postsecondary education, and colleges and universities will be held accountable for accomplishing these objectives. The results achieved to date and commitments from the Reaching Higher Plan include:

Access: Student Financial Assistance

• Up-front grants re-introduced to the OSAP program to help low-income students access postsecondary programs;
• Up-front grant assistance being extended to students who come from families with incomes up to $75,000;
• Allowances for book and supply costs being updated to reflect real costs;
• Increased maximum student assistance levels so that single students are eligible for as much as $75 more per week in student aid;
• Introduced an annual allowance for computer and computer-related costs to $500;
• Reduced amount of money middle-income parents are expected to contribute to their children's education;
• Increased the availability of interest relief for graduates experiencing difficulties during loan repayment; and
• Providing $50 million annually to match funds raised by colleges and universities to establish endowments for student financial assistance through the Ontario Trust for Student Support program.

Access: Enrolment and Outreach

• Increased enrolments at colleges and universities by almost 75,000 students since 2002-03;
• Committed to expand graduate education by 12,000 students by 2007-08 and 14,000 new spaces by 2009-10 through new investments of $220 million annually by 2009-10;
• Increased the number of new first-year spaces at medical schools by 104 spaces and created satellite undergraduate medical schools in four new communities;
• Opened 56 new first-year spaces at the Northern Ontario School of Medicine in fall 2005;
• Committed new investments to improve the quality of education for health care professions;
• Invested $10 million in 2005-06 in new programs that reach out to Francophones, Aboriginal Peoples, people with disabilities and first generation students who would be the first in their family to attend college or university. Advisory committees for each of the four groups have been created to advise the Minister of Training, Colleges and Universities. The funding will increase to $55 million by 2009-10;
• Announced $10 million in new funding for small, northern and rural colleges to increase access to high quality programs in these communities. Funding will grow to $20 million by 2007-08;
• Piloting a new, community-based nursing education program in northern Ontario; and
• Investing in projects that create stronger links between colleges and secondary school programs to help more students make successful transitions to college and succeed in their course of study.

Quality

• Invested $211 million through the Quality Improvement Fund for colleges and universities to hire more faculty and staff, purchase additional educational resources and technology, and improve student support services;
• Established an Ontario Research and Innovation Council to advise on and co-ordinate research priorities;
• Provided $48 million in 2004-05 and $115 million in 2005-06 and ongoing to colleges and universities in tuition compensation to ensure that the costs of the tuition freeze would not be borne by students and that real quality improvements to postsecondary would be made by institutions;
• Invested an additional $250 million in infrastructure renewal and repairs at colleges and universities; and
• Developing a strategy to market Ontario as the premier destination for postsecondary education for international students.

Accountability

• Signed interim accountability agreements with all postsecondary institutions that set out each institution's commitments to quality and access. Multi-year agreements will be signed later this year;
• Made Ontario's universities subject to the provisions of the Freedom of Information and Protection of Privacy Act; and
• Creating the Higher Education Quality Council of Ontario to monitor and report on performance measurement, and guide the postsecondary education system towards improved quality. The council will undertake research on quality, participation and access, and advise government on the best way to measure performance and institutional collaboration.

Examples of Student Aid Recipients
Comparing Assistance Levels in 2003-04 and 2006-07

SCENARIO 1:
Next year, 'Susan' will be a dependent university student living away from home in a first year arts and science program. Both parents work, earning a total income of $50,000 and there will be one younger brother still at home. Next year, Susan will be eligible for student aid of $11,227 which is $2,135 or 23% more than she would have received in 2003-04. She will receive $1,263 in an upfront grant which she wouldn't have received even the year before. In summary, Susan's tuition went up by $188 while she received $2,135 more in assistance and her debt remains the same at $7,000.

Another comparison shows that while Susan's student assistance is up 23 per cent, her tuition will increase by up to a maximum of 4.5 per cent.

SCENARIO 2:
'Mark' will start a first-year college program, living in residence next fall. His parents both work, earning a combined income of $40,000, and have a younger teenage brother still living at home. In 2006-07, Mark will be eligible for $9,184 in total student aid, an increase of more than 19 per cent or $1,451 over 2003-04. This will more than offset a maximum tuition increase of $100. Mark will get $854 of his aid as an upfront grant. His repayable debt will remain at $7,000.

SCENARIO 3:
Next fall, Brian will leave home to begin his first year in an engineering program at university. Finances could be tight as Brian's parents' earn a combined income of $30,000 and support a younger sibling still at home. But in 2006-07, Brian will receive up to $11,805 in student aid, a 26 per cent increase over the $9,350 he would have been eligible for in 2003-04. What's more, $6,000 of this aid will be an up-front grant, leaving Brian with a repayable debt of $5,805, which is $1,195 less than in 2003-04.

SCENARIO 4:
Leslie plans to begin a first year engineering program at university next year and live in residence. Her parents earn a combined income of $110,000 and have three children attending postsecondary institutions. In 2006-07, Leslie will be entitled to $7,058 in student assistance, up more than $3,000 over 2003-04 levels, while her tuition could increase by about $500.

SCENARIO 5:
When he attends a first-year arts and science program at university next fall, Kyle plans to continue living at home with his parents and younger sister to minimize expenses. Together, his parents' income totals $30,000 which makes him eligible for $7,419 in total aid in 2006-07, a 16 per cent increase over the amount he would have received in 2003-04. Since $4,372 of the assistance will come as an up-front grant to cover tuition, he'll be left with just $3,047 in repayable debt or more than 50 per cent below 2003-04 levels. Despite the $188 tuition increase, Kyle will get through school with half the debt he would have been left with in 2003-04.

SCENARIO 6:
Karen, ready to start her second year of college next fall, lives at home with her parents and sister. Her parents make a combined income of $70,000. In 2003-04, Karen would not have been eligible for any student aid at all. In 2006-07, she'll have access to $1,847 in total aid, of which $480 will be offered as an up-front grant.