Ministry suggests changes to tuition billing and deferral fees in Ontario

Photo by Remek Debski/The Sihouette

Photo by Remek Debski/The Sihouette

Anqi Shen
Canadian University Press

HAMILTON (CUP) — A new proposal by the Ministry of Colleges, Training and Universities suggests new tuition billing, flat fee and ancillary fee policies could be in place by 2015.

The proposed changes would clarify what universities and colleges can charge under ancillary fees and make tuition billing available on a per-term basis. The proposal would lift the current moratorium on flat fees while imposing an 80 per cent threshold.

Both CFS-Ontario and OUSA responded to the proposal, citing some welcome changes but continuing to push for altogether eliminating deferral fees and flat fees.

CFS-Ontario chairperson Alastair Wood said, in addition, that more universities should waive interest charges for students who rely on Ontario Student Assistance Program (OSAP).

At York University, for example, students who don’t receive OSAP on time are not charged interest for September, January and/or May.

Deferral fees in Ontario range from $0 at York, Queen’s, U of Windsor and Wilfrid Laurier to $100 at Algoma for students deferring 50 per cent of their tuition.

On the issue of ancillary fees, the Ministry’s proposal clarified that students should not be charged for credential completion or graduation.

OUSA commended the Ministry’s direction but also added that students paying for e-learning materials for evaluation purposes should receive a rebate of “no less than 20 per cent” that should already be covered in tuition.

Flat fees have come under scrutiny because students taking less than a 100 per cent course load can be charged for taking a full course load.

The University of Toronto, one of nine Ontario universities imposing a flat-fee, started doing so in 2009. It’s the only university in the province to charge students taking only 60 per cent of a course load the same tuition as students taking a full course load.

Munib Sajjad, president of the University of Toronto Students Union representing 46,000 undergraduates at two campuses, said he believes the Ministry is making progress but more work needs to be done.

“Our main concern is that it should be a 100 per cent cap on flat fees and that imposing any kind of threshold would make education even more unaffordable. There are many students who take less of a course load to handle other financial responsibilities.”

Sajjad said the UTSU also opposes “penalizing students for circumstances beyond their control” by charging deferral fees to students who rely on the OSAP to pay tuition.

“It’s not a fair thing to do just because the university feels they need to get the money on time,” Sajjad said.

In addition to late fees or deferral fees, students are charged interest on their unpaid balances. At U of T, the rate is 19.5 per cent annually, which resulted in $1.8M in revenue for the university last year.

Currently, tuition in Ontario is set to increase by 3 per cent each year under the new tuition framework. According to OUSA, Ontario students also pay some of the highest ancillary fees in Canada.

 

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Ministry suggests changes to tuition billing and deferral fees in Ontario

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