Changes to OSAP in Ontario
Canada is a great country to get an education. Let me rephrase that: Canada is one of the best countries in the world to get an education…
Canada is a great country to get an education. Let me rephrase that: Canada is one of the best countries in the world to get an education. Specifically a post-secondary education. Canadian government and media needs to do a better job highlighting this fact.
Canada has high completion rates in postsecondary education. In 2012, 57.3 per cent of Canadians aged 25 to 34 had either a college or university diploma, the third highest among member nations of the OECD behind only South Korea (65.7 per cent) and Japan (58.6 per cent). As well, enrolment has consistently been up: RBC noted that for the past 18 years, enrolment has consistently been going up.
Measured by the proportion with post-secondary training, Canada’s workforce is the best-educated in the G7 and among the best educated in the world.
Despite these great successes, Canada — and specifically Ontario — has challenges when it comes to tuition. Since the 1960s, tuition has dramatically increased across the country.
Approximately 46 per cent of graduates have a student loan and the average debt at graduation is $23-$25k.
Ontario, in the 1970s instituted the Ontario Student Assistance Program (OSAP) to provide loans and grants to students to cope with tuition costs. Over time, the program grew and the number of student loans and grants offered became staggering.
Today, the program costs approximately $1.3B, however the mismanagement of the program was noted as a major concern by the Province’s Auditor General. The Auditor General’s report found that on an annual basis, approximately $69M of loans go into default.
Fourteen (14) recommendations were provided by the Auditor General regarding the OSAP program and one finding that was truly insightful included the following: some students who withdrew from their studies still received OSAP grants, which are non-repayable.
The Auditor General’s report goes into much more detail about the shortcomings of the OSAP program, which I would encourage you to read when you have a moment.
This weekend, protests are being planned at the changes to OSAP ushered in by the Government of Ontario. Before we determine whether these changes are warranted or not, a deep understanding on the substantial issues with the OSAP program are very important.
On Sunday January 27, I will be releasing my podcast on the changes to OSAP and understanding both sides of the debate. Take a listen, and let me know what you think. And as always — stay balanced, stay informed.
C
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