Feds, province cut red tape for student loans

The province and the federal government have cut the red tape for the 300,000 full-time college and university students applying for student loans in Ontario.

Premier Dalton McGuinty announced the changes to the Ontario Student Assistance Program (OSAP) application process during a tour of George Brown College’s new waterfront campus on Wednesday morning.

OSAP Express — which will save the province more than $150,000 a year — will require students to sign a loan agreement only once throughout their entire post-secondary studies and will speed up the approval process.

Also, Ottawa and Queen’s Park have integrated their loan programs so there’s only a single loan for students to manage and repay.

It means applicants will no longer have to line up for hours several times a year at financial aid offices.

“In today’s competitive economy, educating our children is the best investment we can make for Ontario’s future,” McGuinty said.

“Students now have an easier way to apply for OSAP and the 30% Off Ontario Tuition grant, which means they can stay focused on their classwork and not be distracted by paperwork.”

The 30% Off Ontario Tuition grant launched in January offers rebates of $1,680 to students in degree programs and $770 to students in diploma and certificate programs.  

The latest announcement comes amid new numbers from Statistics Canada which revealed tuition fees for full-time students are five per cent higher this September than they were last year.

That comes on top of a 4.3-per-cent increase for the 2011-2012 school year.

The agency says the average tuition bill this year is $5,581, compared with $5,313 a year earlier.

Ontario students paid an average of $7,180 in tuition for this academic year.

With files from The Canadian Press

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