Monthly Archives: August 2008

Posted by on 31 August

Getting caught with your hands in the cookie jar: Part III

University of Central Arkansas president Lu Hardin resigned last week following months of uproar after it was revealed he received a $300,000 bonus. The bonus was given to him after a secret vote by the university’s Board of Trustees.

As a public university, UCA is limited by state law as to the maximum amount they can pay their president and this bonus attempted to get around this $202,160 restriction.

The university is allowed to pay employees more than the state maximum provided the funds are from non-public sources.

The state definition of what constitutes public funds is wide-ranging and includes most ancillary operations. This wide-ranging definition limits the universities ability to divert money from students to pay the fat cats of the ivory tower. (Isn’t it refreshing to see a government making sure funding for students actually goes to students – this is unheard of in Canada.)

When the secret $300,000 dollar payout was revealed, the state government launched an investigation and Hardin immediately paid back the money minus taxes. After concluding its investigation, the state ruled that payout was an illegal use of public funds.

Hardin may have survived the scandal had the public not learned of a memo sent to the Board of Trustees prior to the bonus pay vote. The memo told the trustees that the pay measure could be decided in a secret vote. The memo was supposedly written by three UCA vice-presidents. During the investigation, it was revealed that Hardin had written the memo himself.

Hardin’s resignation is effective September 16, 2008. As part of his resignation, Hardin will receive a buyout of approximately $700,000.

Not a bad deal for a man “resigning” in disgrace.

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Posted by on 27 August

Ontario Government statement on new Textbook and Technology Grant

Last week, I pointed out that the Ontario government had no information available on it’s new Textbook and Technology Grant.

Yesterday, the government posted a statement on the OSAP website.

While the government is still refusing to provide basic information, at least they are saying something. What’s interesting in the statement is that the government says an application form will be available at somepoint in September. This leads me to believe they haven’t created this form yet.

I’ll keep my eye on this story and update you when I get any information.

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Posted by on 25 August

Minister Solberg announces income contingent student loan repayment

Repayment of Canada Student Loans will now be based upon the borrower’s income and ability to pay. The new policy will start next year and is part of wide-ranging changes announced by Minister of Human Resources and Social Development Canada Monte Solberg in Kitchener today.

“We know from our own research that young people from many low and medium income families don’t even consider post-secondary education because they think it will be too expensive,” said Solberg. “Today we are telling them and we are telling their families that a low income should not be a barrier to anyone.”

Currently, student loan borrowers in repayment are required to continue to making payments on their student loans regardless of their financial situation or how long ago their incurred that debt. Today, Solberg indicated that would change. Repayment will be tied to income and borrowers will only have to make payments equal to a maximum of twenty per cent of their income. There is also a time limit on repayment. Any debt a student still owes after fifteen years will be forgiven by the government.

“At that time it will be forgiven and we’re of the mind that if people are in the situation after 15 years where they are still struggling to pay, it’s not worth it for us to pursue it,” said Solberg. “Secondly, we want people to get on with their lives. It’s a lot of burden; no one’s going to choose to be pursued for fifteen years by the government in terms of repayment.”

Students will face less paperwork as well. Currently, students must fill out separate agreements for both their federal and provincial loans each year of their post-secondary education. Starting in 2009/10, students will only fill out one form in their first year which will be valid for each year they continue in their original program.

Solberg also highlighted the new Canada Student Grant Program that will launch next year. “If students are from a lower income family, they will receive a $250 upfront cash grant each month they are in school,” he said. “In other words, if you are a low-income student in a four-year program, you will receive eight-thousand in Canada Student Grants over the course of your education.” The government expects 240,000 students will receive grants each year.

To the disappointment of critics, the government didn’t announce any decrease to the federal student loan interest rate, presently set at 2.5 per cent above prime.

Julian Benedict of the Coalition for Student Loan Fairness said students need relief from high interest rates. “If they are going to income contingent loan repayment … the problem with that is that if there is no interest rate adjustment we’ll be expanding the time to which people repay their loans which means they’ll pay more interest at these high rates,” he said of the new Repayment Assistance Plan. He pointed out that most countries with income contingent repayment plans charge interest rates which are below the prime rate.

Solberg believes his changes will be more helpful to students than decreasing the interest rate. “The issue really isn’t student interest rates, it’s the ability of students to repay,” said Solberg. These changes “go a lot further than reducing interest rates a point.”

“Interest rates are only one aspect,” according to Solberg. “The changes we’ve put in place really help people no matter what their situation.”

When asked if he disagrees with interest rate decreases implemented by three provinces this last year, Solberg said, “It’s up to the provinces to decide how they want to do it, but we’ve taken an approach that we think is more universal, that captures all the reasons that people struggle to pay.”

Student lobbying organizations have expressed pleasure with the changes unveiled today. “Minister Solberg’s commitment to help improve access for low and middle-income students and the government’s new initiative to help relieve student debt is reassuring for those who are faced with the burden of such barriers,” said Zach Churchill, national director of the Canadian Alliance of Student Associations.

Students, parents, and graduates can find out more about these changes by visiting the government’s post-secondary portal at www.canlearn.ca

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Posted by on 24 August

Questions for Solberg?

Tomorrow morning, Minister of Human Resources and Social Development Canada Monte Solberg will be in Kitchener making an announcement about administrative changes to federal student assistance.

I will be going up to the announcement which occurs at 10am.

I have my list of questions ready to go, but I figured I would crowdsource anyway.

If you have a question ideas, feel free to throw them into the comments below. I’ll be checking the comments until 9am tomorrow morning.

Here’s one I may ask to really have some fun. “Monte, people really miss your blog and many students support the idea of your blog returning. Should students who want your blog back vote against your government’s re-election in order that you can return to the backbenches and blog again?”

Seriously, my primary question will be on student loan interest rates, but election speculation can be fun.

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Posted by on 24 August

SFU snaps football losing streak

It’s the opening weekend for the 2008 Canadian Interuniversity Sport football season and it only took one game for magic to occur; the Simon Fraser University Clan won a football game and snapped their 25 game winless streak.

For those of you interested in seeing highlights, SFU has uploaded them to YouTube.

While SFU fans may think 25 games is a bad losing streak, University of Toronto fans must be praying for divine intervention.

The UofT Varsity Blues have lost all of their last 49 games and have been setting the CIS record for a losing streak ever since their defeat last October against the University of Western Ontario Mustangs. Their last win came in 2001 when they beat the Windsor Lancers 13-11.

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Posted by on 21 August

GO Transit adds trips for GTA students

GO Transit, Ontario’s interregional public transit system, unveiled it’s back to school transit schedules on routes services GTA colleges and universities today.

GO Transit provides service to the University of Guelph, McMaster University, Sheridan College, York University, Durham College, University of Ontario Institute of Technology, University of Toronto – Scarborough, and Centennial College.

Service is returning to regular service on most routes, with additions of some trips to meet demand from increasing numbers of commuter students using public transit. The only major addition will be Sunday and “holiday Monday” service along the Highway 407 corridor between York and McMaster.

Last year, GO Transit implemented bus service to Guelph and purchased double decker buses for it’s popular Missisauga to York line.

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Posted by on 21 August

A textbook example of bad media relations

Yesterday, I dusted off an old article I wrote last year about how students can save money on textbooks.

Doing this, I remembered that Ontario is implementing its new Textbook and Technology Grant this September.

Announced last fall by Dalton McGuinty as part of his Liberal party’s re-election platform, the grant is designed to assist students dealing with ever-increasing textbook and technology costs. This promise was the cornerstone of McGuinty’s post-secondary platform and heavily touted by Liberal candidates in ridings with large student populations. McGuinty and his government were returned to power in the fall 2007 election and his government promised to make the implementation of the grant a priority.

In March, in the first budget of its second term, the Ontario government unveiled the funding for the grant. When I enquired about the criteria for the grant back then, we were told details would be released during the summer.

So yesterday, I went looking for information on the grant.

A quick Google search found nothing. Nothing using Yahoo. Okay, sometimes search engines miss items. Off to the Ontario Student Assistance Program (OSAP) website. A search of all the grants pages there turned up nothing. Off I went to the Ministry of Training, Colleges and Universities website. Again nothing.

A couple of people had asked me about the grant recently while they were out buying textbooks.

I decided this would make an easy news piece that I could quickly write to inform readers about the grants.

I sent a list of questions to the Minister’s staff and waited for a response.

Here are the questions I sent: “When does the government plan to unveil details on this grant which is supposed to be implemented starting with the upcoming (08/09) academic year? How will the grant be managed? Will students be required to qualify for OSAP in order to receive the grant? If not, how will students not receiving OSAP apply for the grant? Will Ontario residents attending a public PSE institution outside of the province receive the grant? Will students be required to purchase textbooks from college/university bookstores? If so, what steps has the government taken to ensure colleges and universities do not increase textbook prices in response to the increased business? Will students be able to apply the grant to used textbooks?”

Here’s the response I received:

“Details on the textbook and technology grant — along with the application form — will be released in early September,” wrote Annette Phillips, senior advisor, communications for Minister of Training, Colleges, and Universities John Milloy in an email. “The 2008 Budget announced this initiative as one measure to help lower costs for students. Approximately 380,000 full-time university students and 170,000 full-time college students will benefit annually with a grant of $150 per student this fall, increasing to $225 per student in fall ’09 and to $300 in subsequent years.”

I figured I asked too many questions in my first email and narrowed my questions down to things students need to know about the grants now.I sent a follow-up email with the following questions: “What message do you have for students unsure if their textbook purchases will qualify for the grant? Are there any restrictions on how they spend their grant? Is it an automatic credit that every full-time student will get without any receipts?”

Phillips responded, “All of the details on the textbook and technology grant will be coming to students in September. We’ll be letting students know how and where to apply for the grant — and what the eligibility requirements are — at the beginning of the school year. ”

This was not what I was looking for. Students are encouraged, and in some cases required, to purchase textbooks prior to the beginning of the school year.

I sent another follow-up email clarifying the reason I was making the enquiry, “The primary thrust of my question is to inform my readership of what not to do if they wish to receive the grant. Is it possible for students to forfeit this grant by purchasing from an unauthorized retailer?”

At this point, I was looking for a scrap of information. Any scrap would do; they didn’t have to tell me everything they know, just give me enough to run a quick news piece saving students will be receiving $150 as a textbook credit provided they keep their receipts or if they didn’t need receipts.

The response: “We will be providing all necessary information to students in September, along with the application form. May I suggest you wait to inform your readers about the grant until such time as we can provide you with accurate information about how this grant works?”

At this point I realized my attempts to obtain answers were futile and was a simple news story was no longer so simple. The government clearly didn’t get it. Depending on the terms and conditions the government sets on these new grants, a student purchasing textbooks from the wrong place or in the wrong way (used books for example) could disqualify themselves from receiving the grants. By the time the government gets around to revealing the terms and conditions, it could be too late for thousands of students.

And so, the story changed.

It was no longer informing students about a grant they could obtain, rather about how the government wasn’t providing students with this necessary information.Considering the government had five months since the budget (and almost a year since they decided this would be a major part of their re-election platform) to actually figure things out, I found this lack of information to be newsworthy.

Here’s what the student politicians had to say:

“It is our hope that this information will be available ASAP to inform students.” says Tyler Charlebois, director of advocacy for the College Student Alliance. “We want to make sure that all Ontario students take full advantage of these new grants to better assist them in affording postsecondary education.”

“The budget was released in March,” says Shelley Melanson, chairperson of the Canadian Federation of Students – Ontario. “They’ve had ample time to figure this out … this was the only gift for post-secondary students in the budget, they need to know how to access it.”The Canadian Federation of Students-Ontario is calling on the government to save more on administration by reducing tuition instead of creating more bureaucracy to administer a grant which has the same effect. “This should be direct funding,” says Melanson. “We’d rather see a reduction in tuition … the biggest upfront cost students face is tuition.”

“Increased and new forms of assistance for the students of Ontario is welcome by OUSA and we hope to continue to work with stakeholders and government to make sure that the provision of better and more effective assistance is always a short-term goal,” says Trevor Mayoh, president of the Ontario Undergraduate Student Alliance. “We are concerned and disappointed that sufficient information regarding the distribution and application process for the grant has not been made available to Ontario students.”

He continued, “OUSA hoped that this grant would be used by every eligible student but the school year is looming ever closer and we have not seen the government unveil a firm plan on how they will be approaching students and informing them on how to apply and benefit from the program.”

During this time, I responded to Phillips’ email by stating: “Unfortunately, we’ve been receiving inquiries about the grant from our readers and with students already purchasing textbooks, we feel it necessary to run a story informing students where things stand on this grant. It was announced in the budget back in March. I’ve waited for the announcement of details since then.”

The response I received from Phillips: “I assume you will be careful to relay the facts I’ve provided and avoid making assumptions about how the grant will work.”

Checking back on the emails back and forth, the only new fact I had was that the government wasn’t saying anything until at least September 1st and I doubt the Minister would do a photo-op on Labour Day.

I asked Rosario Marchese, post-secondary critic for the NDP, what he thought:

“They were efficient in their announcement of the grant and have been deficient in their implementation,” he said. “They’ve had five months to work out the little details [...] this is unacceptable.” He said the government must do more for students. “This is the only grant for students in the budget and the government seems to be trying to discourage students from taking advantage of it.”

At this point, I tried one last attempt at getting some info, by contacting the Premier’s office.

I repeatedly asked the Premier’s office if they could at least tell me what, if anything, students had to do right now to make sure they qualify for the grant.

The Premier’s office said they could not give me this information.

In the end, we have no idea of how the government will actually implement this grant and we don’t know when they’ll actually get around to announcing it. We can be sure they’ll spend a lot of money making it sure the photo-opportunity looks good. (Anyone want to take bets that I won’t be invited to this photo-op?)

RELATED: Undecided on Ontario’s new travel grants

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Posted by on 21 August

Ontario government investing in skilled trades

Ontario Premier Dalton McGuinty announced $21 million in new funding for Waterloo region’s Conestoga College and $9.2-million at Hamilton’s Mohawk College. The new monies are part of the government’s efforts to increase college enrolments as part of the province’s $1.5 billion Skills to Jobs Action Plan.

The funds given to Conestoga will support the building of a new state-of-the-art campus in Cambridge across Highway 401 from the present Conestoga campus in Kitchener. The new campus will house about 3,000 new students in a 200,000 square feet facility offering programs in welding, robotics, civil engineering and renewal energy. Construction for the campus will begin in 2010.

“We’re investing in the skills and knowledge of our people so they can work in high-paying, skilled jobs that will strengthen our economy and improve everyone’s quality of life,” said Minister of Training, Colleges and Universities John Milloy. Milloy’s riding is located in Waterloo region.

Mohawk College is receiving support for its new Gerald Marshall Transportation Centre which will be located at the College’s Stoney Creek campus. The centre will house equipment, labs and a maintenance facility capable of holding up to three full-sized tractor trailers. The facility will train students for positions as auto mechanics, truck and coach technicians and servicers.“The skilled trades are the place to be. We have the jobs, but we need the people to fill them. Now, Mohawk College will be able to train more students to go onto fulfilling careers,” said Premier Dalton McGuinty.

These announcements follow earlier ones made at Georgian, Hearst and Northern College.

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