CREDIT: 123RF.COM
Changes to OSAP will put dollars in student pockets.

Big news for students receiving funds from the Ontario Student Assistance Program (OSAP): starting fall 2015, students will not have to pay a cent for tuition until their financial assistance is available.

As outlined in a press release dated December 5 by the Ministry of Training, Colleges and Universities, changes include:

- Tuition fees for a fall term will not be due before the beginning of August, restricting institutions from requiring tuition payments in June or July

- Students who complete their OSAP applications by the beginning of August will not have to pay their tuition before receiving their financial aid

- All students will be able to pay tuition in per-term installments without paying deferral fees or interest charges

- Colleges and universities may continue to charge a deposition on tuition, but the amount will be capped at $500 or 10 per cent of the tuition total, whichever is greater. Institutions must use the deposits to cover the student's tuition fees

Gyula Kovacs, MTCU's senior media relations and issues co-ordinator, said these changes are ways the province is introducing a fairer way for post-secondary institutions to charge tuition and other fees.

“The changes will save students money and ensure that they are not asked to pay for tuition before their [OSAP] arrives,” Kovacs wrote in an email interview. “The government is ensuring consistency in how tuition is billed across the post-secondary system, creating a simpler, more transparent fee system.”

Improvements to the OSAP system come about after continuous discussion with student groups, in which a number of concerns regarding tuition billing and fees were addressed, said Kovacs.

He added that improvements to Ontario's tuition framework and financial assistance system aim to make “post-secondary education accessible on the ability to learn, rather than the ability to pay.”

While not having to pay tuition until financial aid is available sounds great for students, some institutions are not entirely pleased. Institutions like the University of Toronto have expressed concerns about millions of dollars lost in revenue.

To this, Kovacs countered, “The Ontario government has increased funding to post-secondary institutions by 80 per cent over the past 10 years and continues to invest in post-secondary institutions through programs like the recently announced $47.5 million Productivity and Innovation Fund and $10 million College and Health and Sustainability Grant.

“The Ministry is committed to working collaboratively with the sector to support changes in tuition billing, however, it is asking institutions to implement these changes within their current funding allocations.”

Regardless, Kovacs insists these changes are exciting for students.

“The new rules ... improve fairness, affordability and consistency,” he said. “The changes will save students money … An average student who would have opted to defer payment will save about $50 per year, or $200 over the course of a four-year undergraduate degree.”

To learn more about OSAP and other benefits it has in store, check out osap.gov.on.ca.