Students will see an increase in their financial assistance and another option for repaying the outstanding loan debts
OCAD in Toronto, one of Ontario’s many post-secondary institutions
Photo by Mark Matson CC 2.0
Ontario’s continued development of post-secondary loan and debt reduction strategies, have resulted in a loan increase and an additional loan repayment option for students.
Helping post-secondary students repay their loans is part of the government of Ontario’s economic plan, according to the Ministry of Training, Colleges and Universities (MTCU) in a press release on Dec. 8.
The Ontario Student Assistance Program will increase the student loan limit by $5 for the 2015-16 school year, to $155 per week for full-time students depending on their marital status.
While Ontario is adjusting student aid amounts to compensate for inflation, in the 2015-16 school year the province will cap student debts to no more than $7,400 for a two-term academic year.
“Ontario is committed to making post-secondary education accessible based on a student’s ability to learn, not their ability to pay. By taking important steps to increase the amount of financial aid available to students, improve flexibility in the repayment process and tie debt caps to inflation, our government is ensuring that our student assistance programs remain sustainable and can continue to help all qualified students attend college or university, regardless of their income,” according to MTCU Minister Reza Moridi.
The debt caps will also increase with inflation each year with repayable debt remaining at 60 per cent of the maximum amount of financial aid available to the students.
“By indexing Ontario’s maximum student aid levels annually to inflation, this will provide students with more information to help plan for their post-secondary expenses,” said Matthew Stewart, president of the College Student Alliance. “At the same time, the Ontario Student Loan Rehabilitation Program will allow past borrowers to restore credit levels to good standing.”
According to MTCU, the 30 Per Cent Off Tuition Grant helped almost 230,000 students save $1,780 in the 2013-14 school year.
The grant is only applicable to students applying to college, university or a private college directly from high school, with special eligibility exceptions for people with disabilities or for fourth or fifth year co-op students.
Ontario also introduced the new Ontario Student Loan Rehabilitation Program this month, which will help students who have defaulted on prior loans, bring their loans back into good standing.
“We are pleased that Ontario has joined the other provinces in offering a debt rehabilitation program for students, which is especially helpful for students who are returning to school after being in the workforce, providing a clearer path into higher education.” said Jen Carter, president of the Ontario Undergraduate Student Alliance.
