Tuition in Ontario will continue to rise at an average rate of five per cent a year, the province announced today. The tuition cap has already been in place for three years. The framework does allow universities to raise tuition by more than five per cent in some programs, so long as it is balanced with smaller increases in other programs. Before the current framework was in place, tuition was frozen for two years.
The ministry of Training Colleges and Universities has also announced several changes to the Ontario Student Assistance Program (OSAP). Students will not be charged interest on their student loans for six months after graduation. Until now, while students did not have to make payments on their loans for six months, interest still accrued. But, while graduates will see interest relief, the “Ontario Student Opportunity Grant threshold, which caps annual student debt, will increase from $7,000 to $7,300 for a two-term academic year.” All OSAP money over the threshold gets converted from a loan into a grant, and a rise in the threshold is likely to increase debt loads.
Additionally, how much students are permitted to earn without having to face a clawback from OSAP has increased from $50 a week to $100 a week.
The changes are set to take place in August.
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