In 2019, the government had banned increasing tuition fees in government colleges and universities. Along with this, fees were also reduced by 10%. What does it mean Higher Education Had to be made affordable. However, colleges and universities say that their budgets are increasing due to the ban on increasing fees and the government’s reduction in the number of foreign students. Not only this, but due to lack of money they have had to close many courses and some facilities have been removed.

Universities going into loss

According to the New York Times report, in November Council of Ontario Universities said their member institutions have faced cuts of approximately 550 million Canadian dollars in recent years. Still, they are at risk of an estimated annual deficit of 265 million Canadian dollars this academic year. In Canada the central government decides how many foreign students study permit Will be given. Ever since the government has reduced the number of study permits, the colleges here have been incurring losses.

What is changing regarding fees?

Under the new ‘funding framework’, government colleges and universities will be allowed to increase tuition fees by 2% every year for three years. Fee increases will then be capped at 2% or the three-year average rate of inflation, whichever is lower. The state government is also going to invest 6.4 billion Canadian dollars in the higher education sector over the next 4 years. In this way, the total funding for running colleges and universities will exceed 7 billion dollars, which is the highest in history.