Dion would boost student aid, research funding

Stéphane Dion unveiled his party’s post-secondary education platform today at the University of Western Ontario. The plan, if implemented, would see the largest new money investment in student financial aid since the creation of the Canadian Millennium Scholarship Foundation in the late 90s.

The plan will create over a billion dollars in new grants and shift some federal aid from tax credits to upfront grants. To fund the plan, the Liberals would create a $25 billion endowment, which is similar to the former scholarship and grant body, the Canadian Millennium Scholarship Foundation.

“We have to increase support for students to make sure university and college is accessible to all Canadians. The future productivity and economic success of Canada depends on the investments we make in research and development today,” said Dion.

The Liberals will create, upon full implementation in four years, new targeted grants for 300,000 post-secondary students. 200,000 will be solely needs-based bursaries of $3,500 a year and an additional 100,000 access grants worth $4,000 will be targeted to students from traditionally underrepresented groups such as Aboriginal students.

The Liberal will replace the current education and textbook federal tax credits with a series of grants to be paid to students at the same time as they receive GST tax credit cheques. Presently, students cannot take full advantage of the tax credits unless they earn $20,000 dollars a year. Most students make substantially less.

The new funding model will result in full-time students receiving $1000 cash each year when combined with their existing GST credits.

Student lobbying organizations are divided on the Liberal plan. The Canadian Alliance of Student Associations is pleased with the focus on the neediest students; the Canadian Federation of Students is disappointed that the Liberals are not focusing on cutting tuition fees.

Source