Don’t hold out for big cash from the new federal budget. While babies planning to get a little higher education will find some help in 18-odd years, current students have less to look forward to.
The federal budget, announced this Tuesday, alloted $251 million for higher education.
Raising the weekly loan ceiling will swallow up $92 million of that fund. This will allow students to be able to borrow more per week to pay for university.
This type of solution to making higher education more accessible has Rick Telfer, the Canadian Federation of Students’ Ontario rep, enraged.
“They’re saying that it’s okay to charge students more money,” said Telfer. “Is it relief for students or putting more of the cost on students?”
Grants or reducing tuition fees would be the best route, he argued. “Student loans are a regressive policy because the more we lend to people, it means they ultimately have to pay it back…That’s a complete inconsistency with the principle that education is a fundamental social and human right.”
Canada Learning Bonds will swallow up $85 million. Bonds worth $500 are to be bestowed on all children born to families earning less than $35,000. Until the age of 15, $100 will be added to that pot annually.
“Even with no additional contributions by parents or others, these funds could grow to nearly $3,000 by the time the child turns 18, providing a foundation for higher education and a better future,” Finance Minister Ralph Goodale told the House of Commons on Tuesday. “The learning bond will benefit more than 120,000 newborn children this year alone.”
This type of plan is all smoke and mirrors to Telfer. “This is a program that nobody will benefit from until 2020, so who cares?” The money will not alleviate the shortage of skilled workers, nor the needs of current students, he said.
The budget does provide some relief in the form of $3,000 which will be doled out to kids from low income families. The grant is to be for the first year of university only. Those with disabilities will receive $2,000.
Canada’s education savings grant will also be getting a makeover. The government will now match 40 per cent of contributions for families earning $35,000 or less, up from 20 per cent. Families with incomes of $75,000 and under will see an increase to 30 per cent.
Research at universities will also see a $20 million boost.
The budget has been deemed conservative by many media outlets, with the lowest rate of new spending since 1998.