University will soon be free for low-income Ontario students

Ontario’s net debt will hit $308 billion in 2016-17, the largest of any sub-national jurisdiction in the world, costing $11.8 million in interest payments. This development comes as a major victory for student advocates and organizations like the Ontario Undergraduate Student Alliance (OUSA) that have advocated for changes to the way the Province allocates financial aid to students pursuing post-secondary education.

Starting in the 2017/2018 school year, tuition will be free for students that come from families who make an income of less than $50,000. Starting in the 2017-18 school year, the province will create a new grant – called the Ontario Student Grant. No Ontario student will receive less through the new grant than they are now eligible for through the Ontario Tuition Grant.

What happens now, for the most part, is that students pay tuition up front and get loans, grants and tax credits that kick in later.

The students will be able to study at any post-secondary institution in Canada, not just in Ontario.

Premier Kathleen Wynne revealed some of the impacts on consumers, such as an increase of about 4.3 cents a litre on gas and about $5 more per month on residential natural gas, before the legislation enabling cap and trade was to be introduced.

While many students have reacted positively to the news, political opposition remains confident that this new proposed program is not the best program for Ontario’s students.

Taxes on cigarettes are rising $3 per carton and wine prices will also rise.

The Budget also announced a cap and trade program for the reduction in greenhouse gas emissions.

Ontario’s deficit for fiscal 2015-16 is expected to come in at $5.7 billion, down from the last estimate of $7.5 billion.

“My worry is that we’re going to see the government taking advantage of the good will the public has on wanting to combat climate change as simply a revenue grab”, said Progressive Conservative Leader Patrick Brown.

“There’s been no consultation, no warning and for seniors budgeting on fixed incomes, which most are, this is a huge new cost”, she said.