1 Presentation to the College Students Alliance Ministry of Training, Colleges and Universities November 24, 2015

Overview OSAP Description/Stats OSAP Applications and Participation OSAP Improvements Future OSAP Reforms Questions 2

OSAP Description OSAP is an “umbrella” term for many needs-based student financial assistance provided by Ontario and Canada. OSAP includes over 20 separate loan, grant, bursary, scholarship, and other aid programs (i.e. 30% OTG, Distance Grants, Bursary for Students with Disabilities). The purpose of OSAP is to provide needs-based assistance to eligible students from low and middle-income families to assist with the costs of postsecondary education. OSAP is an entitlement program. No cap is set on the number of students who can qualify for funding; eligibility is determined based on student need assessments. 3

OSAP Statistics In : Approximately $3.5B in funds were issued to Ontario students through a combination of federal-provincial loans and grants. – The average student received about $9,980. Ontario alone issued over $1.3B in grants and loans to more than 380,000 students. – 70 percent of this assistance was money that students won’t have to repay. Approximately $2.2B in funds were issued by the federal government in loans and grants. About 68 percent of full-time Ontario college students relied on OSAP to help fund their studies. 4

OSAP at a Glance 5 Issued as loan – reduced by Grant - OSOG

6 Total Awards Issued: 347,923

OSAP - College Participation Rates 8

OSAP Improvements (1) ChallengeAddressed by Complicated, paper-based loan agreements (students line ups) OSAP Express – self-service, lifetime agmts, NO more lining-up (2011) Complex and punitive treatment of funding for Crown Wards Living and Learning Grant and Free Tuition Fee introduced for Crown Wards (2012) Help for recent graduates in financial trouble to pay for their student loans Repayment Assistance Program (2010); Extended grace periods volunteers and entrepreneurs (2012) Late OSAP payments up to a month after school start Early payments up to 2 weeks before school starts (2013) Multiple payments under OSAP from different sources creating confusion Single/simplified OSAP payment was introduced through National Loan Ctr (2013) Expensive and early deposits, BEFORE OSAP payments, and full year billing in advance. New rules for tuition billing - smaller deposits; per- term billing, fee caps (2013) 9

OSAP Improvements (2) 10 ChallengeAddressed by Infrequent increases to OSAP loan/ assistance limits/maximums Indexed OSL and OSOG thresholds to inflation (2015) Complex rules on pre-study contribution, and large disincentives to work during study Budget 2015 committed to : -Removing restrictions on in-study earnings -Simplifying OSAP with a flat $3,000 pre- study contribution -Exempt $3,000 assets Prohibitive rules around owning vehiclesRemoval of vehicles from OSAP assessment (2015) Debt aversion for certain studentsStudents can now choose to accept grants only or a portion of loans (2015) Once a graduate defaulted on loan, could never get back into good standing Introduced automated RAP (electronic) and default rehabilitation (2015)

Focus of Future Reforms 1.) MORE TARGETED ASSISTANCE Ontario has the highest PSE attainment rate in the world – at 66 percent. However, rates of full-time PSE participation are lowest among youth from the lowest income families. There is a correlation between family income and PSE participation. Access is also impacted by other factors including: – Student profile (e.g., parental education attainment); – Knowledge about PSE opportunities; – Steep informational barriers; – Adequate support from family and/or friends; and – Appropriate academic and non-academic supports. 11

Focus of Future Reforms 2.) INCREASE TRANSPARENCY – REDUCE COMPLEXITY OSAP is complex and should be easy to understand and navigate – potentially improving access. 12

Focus of Future Reforms Vision for OSAP: Ensuring that postsecondary education remains a shared financial responsibility between students, their families and government. Making OSAP increasingly progressive and focusing government resources on those students with the greatest need. Addressing the needs of non-traditional students, such as mature students returning or starting schools, and those students with children. Improving OSAP so that it is easier to understand for students Reform OSAP so that it is more targeted and grants are available up-front when students are actually incurring costs, like tuition. 13

Questions? 14 Other ways tocommunicate with OSAP: Other ways to communicate with #OSAP #30off Get more information byvisiting the OSAPwebsites: Get more information by visiting the OSAP websites: OSAP: ontario.ca/osap 30Off: ontario.ca/30off