Spending changes in Ottawa affect students’ ability to pay for their education, get a summer job and gain research experience. Prime Minister Justin Trudeau’s first budget created major increases in grants, contributions to student loans and investments in student work placements and campus research.
The biggest change for post-secondary education affordability is the 50 per cent increase in the Canada Student Grant, a program administered by the federal government which makes funds towards post-secondary education available for students from low- and middle-income families. Students from these income brackets are now eligible for $3,000 and $1,200 per year, respectively. The official report predicts this will benefit 347,000 students.
In addition to upfront grants, Canada Student Loans will also be more accessible.
A flat-rate contribution will be introduced as of 2017-18. Under the current system, if a student’s income changes through the year, then so does their eligibility status or payment amounts for loans or grants. A flat-rate contribution structure changes this by sticking with the status a student reports at the beginning of the year, therefore allowing students to work during the year without losing their eligibility status for loans and grants.
Repayment options have eased significantly. Previously under the Canada Student Loans Program’s Repayment Assistance Plan, students had to start paying back loans when they had an income of $20,210 — barely over full-time minimum wage. Now recent grads have more breathing room as they won’t have to repay until they earn at least $25,000 per year. Interest on the loans would be covered by the government until the student reaches this threshold.
“This is a very positive first step budget,” said AMS VP External Jude Crasta, whose office within the AMS has been in charge of advocating for student interests at the federal government level.
The new budget also commits to “investing in summer jobs for youth,” according to the official report. In addition to doubling the size of the Canada Summer Jobs Program, the government is enhancing the Youth Employment Strategy from $330 to $495.4 million and creating the Post-Secondary Industry Partnership and Co-operative Placement Initiative. This translates into more co-op positions and enhanced industry partnership on campus.
Although Crasta is pleased with the expansion of funding, he still sees gaps that need to be filled.
“We would like to see more expansion of co-op funding into fields for humanities and social sciences so that arts students can benefit just the same,” said Crasta. “We are currently seeing a great deal of the co-op funding for … STEM [science, technology, engineering and mathematics] fields and we would like to see … a more balanced approach.”
The biggest positive note for Crasta is the increased funding to transit, making it easier for students to get to campus.
“This is an immediate change in the Public Transit Infrastructure Fund and could lend support for the Broadway Corridor and Surrey light rail,” he said. “We are looking at much-needed investment in infrastructure in urban communities.” The university is also very pleased with the budget.
“From the research and international standpoint — mostly the research standpoint — it was pretty much a universal good news budget,” said John Hepburn, UBC’s vice-president research and international.
This is most tangible in the increased money allocated towards support for infrastructure of postsecondary research facilities. Hepburn notes that this funding isn’t just targeted at STEM fields.
“This money has no strings attached. It basically has to be spent promoting research,” he said. An additional $95 million is going to funding for research through granting councils, which administer postgraduate scholarships — roughly a four per cent increase, said Hepburn. This is the highest annual funding increase for discovery research in more than a decade and the first time above the inflation rate.
The emphasis on a diverse range of fields is good news for Hepburn.
“There’s a loosening up and recognition of research in all fields. That might mean that [the government recognizes] a lot of the problems facing the world actually have very strong social and cultural dimensions. If all you focus on are the technological dimensions, you’re losing something,” said Hepburn.
Overall, everyone is happy to see a renewed commitment to Canada’s postsecondary landscape on the part of the Liberal government.
“We really appreciate the commitment to youth,” said Crasta. “We’d have to say to keep up the direction and the work, not shift the focus away from youth.”