Low-income families will soon be better equipped to provide their children with a post-secondary education.
The federal government announced its annual budget for education for the next two years on Tuesday, including an initiative that will help children from low-income families get a jump-start on saving for college and university.
A total of $251 million will be spent on education in 2004-05, with a total of $466 million to be spent in 2005-06.
Jonathan Espie, AMS academic affairs commissioner, said it is a good sign the government is showing a commitment to students. “We’ve seen past budgets that have made no commitment whatsoever,” he said. “This is a move in the right direction.”
Espie said, however, that a large portion of the budget is targeted towards the low-income bracket.
“I’d like to see more of a focus on middle income,” he said. “This is where there’s been a decline in recent years.”
Finance Minister Ralph Goodale introduced a $500 Canada Learning Bond for every child born in 2004 and onwards to families earning less than $35,000 annually.
The government has promised to contribute an additional $100 to the bond every year until the child reaches the age of 15. “Even with no additional contributions by parents or others, these funds could grow to nearly $3,000 by the time the child turns 18, providing a foundation for higher education and a better future,” Goodale said in a statement made to the House of Commons. Prime Minister Paul Martin said this initiative is on par with the budgets he introduced in 1998.
In addition to the introduction of the Canada Learning Bond, Goodale presented a series of other initiatives meant to increase accessibility to post-secondary education. These initiatives include:
• a $3,000 grant for first-year university students from low-income families, with an expected rate of usage at 20,000 students;
• a $2,000 a year grant for students with disabilities; • allowing computers as a legitimate expense under student loans
• an increase in the amount of interest relief for graduates with significant student debt;
• extending the education tax credit to employees who pursue studies related to their careers;
• improvement of language training for immigrants.
The budget also promises to reduce the expected contribution of middle-income parents to their children’s education before the students are eligible to receive a loan. This initiative is expected to affect up to 40,000 families. The budget also includes an increase of $200 million in funding for research at universities and teaching hospitals. This is the smallest increase in annual contribution in the past five years. Principal Bill Leggett said he welcomes the federal government’s new budget.
“I am delighted with the money being put into research,” he said.
Leggett said that while the allocated funds are not a huge amount, he feels fortunate because many other groups did not receive funding of this calibre.
AMS president Chrissie Knitter said she was happy to see the federal government committed to funding post-secondary education.
“It was very focused on student debt and financial aid,” she said. “I would have liked to have seen more of a social transfer to the provinces.”
Knitter said this would involve universities receiving a lump sum from the provincial government in order to stabilize their financial situations.
Programs aimed at early childhood education will take $91 million of the budget, post-secondary $105 million, continuing education $25 million and $30 million will go towards Aboriginal programs.
—With files from the Toronto Star, www.cbc.ca and the Kingston Whig-Standard
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