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Does a tax break create university access?

On September 15, 2010, in Blog, Media Coverage, by Duncan
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The CAUS proposal to end provincial tuition and education tax credits included in our budget recommendations has received a fair amount of attention lately. That might make some sense – after all it is not everyday that students call for the government to end a program.

You can read the Edmonton Journal article on the subject or check out our budget submission for more details, but we are just as interested in what you think.

We believe that few students, if any, come to university just because they receive a tax credit. But what we do know is that many Albertans never go to post-secondary education because of financial reasons. Alberta has the third highest tuition in the country so it is no wonder that some are being left out because of money – in fact Alberta has the lowest post-secondary participation rate in Canada.

What is key to our proposal is that up-front grants represent the best way to get students into university, to reduce those barriers that Albertans find when trying to get a degree. Tax credits may be nice when you are filling out your return in March but do little to pay your tuition when you need it in September.

Shifting resources from tax credits to up-front grants is only a part of our proposal to re-invest in post-secondary education. Alberta’s universities and their graduates are where Alberta’s future prosperity lies and we need to make a priority in the upcoming provincial budget.

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The Government of Alberta is establishing a new scholarship, named after Dr. Gary McPherson. The Gary McPherson Leadership Scholarship will award up to 100 scholarships worth $2,000 each to students attending Alberta’s universities, colleges and technical institutes.

“Scholarships are an important method of recognizing excellence and getting financial aid to students,” said Hardave Birk, chair of the Council of Alberta University Students and a student at the University of Calgary. “I believe that Dr. McPherson would be proud to have these scholarships as a part of his substantial legacy.”

Dr. McPherson was a professor at the University of Alberta and an advocate for Albertans with disabilities prior to his death earlier this year.

“Students have been looking to the government to provide more bursaries and scholarships in the wake of last year’s cuts to non-repayable assistance, and these scholarships a great way to start,” concluded Birk.

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A new team of university student leaders in Alberta have started their terms and have wasted no time in getting down to work. The Council of Alberta University Students (CAUS) met to discuss the upcoming year and the changes needed in Alberta’s universities. At the top of the priority list was picking a new chair.

University of Calgary Students’ Union Vice President External Hardave Birk was elected the new chair of CAUS for the 2010/11 academic year. He is joined by University of Lethbridge Students’ Union Vice President Academic Keith McLaughlin who will serve the year as vice-chair. Together CAUS identified university operating funds, improving student financial aid rising tuition and regulating non-instructional fees as the top issues facing students.

“Students are worried that it is going to be another difficult year, but last year demonstrated that students are prepared to fight to keep their education high quality and affordable, and we are going to make sure the government gets that message,” said Birk. “We have a great team across Alberta to ensure these concerns are heard.”

CAUS represents undergraduate students from the University of Alberta, the University of Calgary and the University of Lethbridge and each year selects one student executive from a member students’ union to serve as chair and chief spokesperson. The CAUS office is located in Edmonton and represents students to the provincial government, other post-secondary stakeholders and the Alberta public.

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Yesterday’s provincial budget made it clear that students were going to be the ones footing the bill for cuts in post-secondary education through increased student debt. Coming down at the same time as universities ponder dramatic tuition increases and new mandatory fees students, the cuts to scholarships, bursaries and grants will be felt hard on campus.

“A cut to bursaries and grants is a slap in the face – thousands of students are facing the prospect of few summer jobs and now are given little more than additional debt by the province,” said Beverly Eastham, chair of the Council of Alberta University Students (CAUS) and VP External at the University of Alberta Students’ Union. “We are especially disappointed in cutting the Student Loan Relief Benefit, the most important tool we have to limit student debt in this province. That is going to send those debt levels through the roof – expect to see graduates with as much as $50,000 or more in debt.”

The 2010 provincial budget made several unexpected cuts to Alberta’s student financial aid system, including:

  • Eliminating the $34.5 million Student Loan Relief Benefit, which limited the amount of debt a student could graduate with in Alberta

  • Cutting grants and bursaries to $13.5 million, a cut of 55% from last year
  • Reducing scholarships by $2.9 million from last year

    In order to compensate for these changes, the government is increasing student loan disbursements by $37.6 million through increasing loan limits, living allowances and other policy changes, although much of that may flow directly to institutions in the form of tuition increases and new fees.

    “Students have been hit hard by this economic downturn and can ill afford to see their supports crumbling away. This is a budget that hurts students,” concluded Eastham.

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New universities welcomed by students

On September 24, 2009, in Blog, News Releases, by Duncan
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The Government of Alberta has renamed Grant MacEwan College as Grant MacEwan University, the second such transformation in the last month following Mount Royal College being renamed Mount Royal University. The name changes at both institutions are a result of an extensive review of Alberta’s post-secondary system and are designed to be more reflective of the nature of the two institutions and the students that attend them.

University students across the province welcome the announcement. “With a clear majority of students enrolled in degree programs, the name change is a good fit,” explained Beverly Eastham, chair of the Council of Alberta University Students (CAUS) and University of Alberta Students’ Union VP External. “With the increase in demand for a university education careful expansion of the system is a wise move.”

The changes come during a period of economic downturn in Alberta and declining government revenues. Students are concerned about the impact of shrinking government funding at a time of expansion.

“Every degree offered at an Alberta institution, whether it is a brand-new university or a well-established campus, needs to offer a quality education to back up those degrees,” said Eastham. “We hope the Government of Alberta is up to the task of ensuring that the education offered at our universities is world-class.”

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