No-money-down post-secondary proposed during Ontario leadership campaign

By Katherine DeClerq
CUP Ontario Bureau Chief

OTTAWA (CUP) — On Nov. 3, Glen Murray, then the Ontario Minister of Training, Colleges and Universities, announced his resignation and his intention to run for the provincial Liberal leadership. Six days later Murray introduced his “No-Money Down University or College” proposal.

The announcement came in the form of a press release and described Murray’s intent to offer students the opportunity to attend university or college without paying up front.

Glen Murray, a candidate for the leadership of the Ontario Liberal party, is pitching “No money down tuition” as part of his platform. Cartoon: Joseph Destua

In partnership with private lenders, the government would supply up to $4,000 for college tuition and $7,000 for undergraduate university degrees for every year of study. This money would be interest-free until 12 months after graduation, at which point it would have to be paid back at a low-interest, tax-deductible rate. There is an exception in place for maternity or paternity leave.

“Seventy per cent of jobs require university or college education, [and] well, everyone has to get one,” said Murray in an interview with the Canadian University Press. “When students have the least money, students have to come up with it, or their family has to. If you don’t have to pay any money down for tuition, it isn’t a barrier to university or college.

“You wouldn’t have to pay anything until you get a job after you graduate and when the job has a minimal income.”

The money would be guaranteed for any student who asked for it. Murray said that his main concern is to ensure that the middle-class, who is not eligible for a large number of grants and bursaries, are still able to get a post-secondary education.

At the same time, some students are concerned that this will actually increase the amount of student debt. The Canadian Federation of Students-Ontario (CFS-O) issued a statement shortly after the announcement of the No-Money-Down College or University proposal explaining that the system has been suggested before and was widely opposed.

“Essentially what Glen Murray is proposing is an income contingent loan payment scheme,” said Sarah Jayne King, chairperson of the CFS-O. “Even more concerning is that we’ve seen where these types of programs have been implemented around the world. We’ve seen substantial tuition fee increases and student debt increases.”

Murray did not seem overly concerned with the CFS’s arguments.

“The CFS sadly has opposed almost everything most governments put out without even reading it, so it’s a bit premature,” he said.

The details of the proposal are still unknown, and Murray insists that there will be lots of student interaction when it comes down to the particulars of the policy.

“[The No-Money-Down College or University] was something proposed by the Ontario Undergraduate Student Alliance (OUSA) a decade ago. I’ve mentioned this in broad terms to OUSA, and I’d also meet with the CSA and independent student organizations.”

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No-money-down post-secondary proposed during Ontario leadership campaign

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