Sweeping changes designed to save students thousands of dollars were announced by Minister of Training, Colleges, and Universities Brad Duguid in early December. After four years of student union lobbying, protests, and controversy, the provincial government has introduced regulations to phase out U of T’s policy of charging full tuition to students who take as few as three courses — generally known as flat fees. The new guidelines, introduced on December 5, also eliminate interest fees incurred because of the Ontario Student Assistance Program’s (OSAP) distribution schedule, mandate two payment periods for tuition, and regulate the types of late and ancillary fees that can be charged.
Starting in fall 2015, students who take 3.5 full course equivalents or more (FCEs) will be charged full tuition. In 2016, that threshold will rise to 4 FCEs. Currently, U of T has a flat fee threshold at 3 FCEs. In addition, students with a disability will now be charged tuition on a per-credit basis, regardless of their course load.
Individual domestic students who take three courses may save up to $2,300 per year under the new guidelines, according to Alastair Woods, chairperson of the Canadian Federation of Students-Ontario. Individual international students who take three courses may save up to $13,000 per year. Although Woods sees the changes as a step in the right direction, he still advocates a return to per-credit billing.
Agnes So, vice-president, university affairs, of the University of Toronto Students’ Union (UTSU), echoed Woods’ sentiment. Although So is pleased with the government’s response to student concerns, she also advocates a return to per-credit billing. “We need to keep pushing until there is no longer a way that students can be forced to pay for courses they do not take,” So said. The UTSU has opposed the flat fee structure since it was first announced in 2009.
Although student groups are happy with the changes, the university has expressed concern. In a December interview with The Varsity, U of T president Meric Gertler said that the changes to the flat fee system will eventually cost the university $16 million annually. The latest available financial information on the Faculty of Arts & Science, from 2010, shows that the faculty has an accumulated deficit of over $60 million.
As dean of the Faculty of Arts & Sciences, Gertler was a strong advocate for flat fees. “We can show quite clearly that it is cheaper to get through faster. You save on housing costs and the ancillary incidental fees that are often quite substantial,” said Gertler in a 2009 University Affairs interview on flat fees. “We know that it is less expensive in the grand scheme of things to do this in four years and move on to earn an income or go to graduate school or professional school.”
At present, the U of T administration is uncertain as to how the university will account for lost revenue from the changes. “It is too soon to know if or where U of T will reduce expenditures to make up for the lost revenue,” Gertler said in The Globe and Mail. “We are pleased that this change will not be implemented until 2015–2016, since this will give us more time to figure out how to accommodate this change.”
Shawn Tian, president of the Arts & Science Students’ Union (assu), expressed concern with the Faculty of Arts & Science’s assessment of the flat fee system. According to Tian, the Faculty’s only assessment of the system was conducted the year immediately after its implementation, and has since been discontinued. “If the Faculty wants to claim that flat fees get students to graduate sooner and accrue less debt overall, then I want to see the numbers,” Tian said. “[Students] have been left in the dark, and I don’t like the idea of the largest faculty in the university stumbling without adequate information to make critical decisions.”
According to Emily Hedges, a spokesperson for the Ministry of Training, Colleges, and Universities, the changes arose from concerns expressed by student groups leading up to the release of Ontario’s new tuition framework in March 2013. To address these concerns, the ministry established a working group with representatives from Ontario’s colleges, universities, and student groups.
According to Yolen Bollo-Kamara, vice-president, equity of the utsu, the root of the university’s financial problems is underfunding at the government level. “Underfunding causes high tuition fees and high student debt that tends to affect marginalized groups most,” Bollo-Kamara said.
Tian agrees. “The Faculty of Arts & Science needs a sustainable, fair revenue system that is going to be self-supporting in the long-run,” he said. “If the Faculty of Arts & Science cannot balance its budgets, then the entire University is in for a turbulent ride.”
The guidelines also address tuition and payment dates. Currently, students with osap loans are required to pay tuition fees at the same time as students without the loans. Under the new system, students who complete their osap applications by the beginning of August will not have to pay tuition before receiving their financial aid. All students will also be able to pay tuition in per-term installments without deferral fees or interest charges.
The changes will begin rolling out at colleges and universities in the 2014–2015 academic year, with full implementation by 2015–2016.
