Canadian Millennium Scholarship faces uncertain future

Morgan Modjeski, staff

With its 10-year mandate set to expire at the end of the 2008-09 academic year, the Canada Millennium Scholarship Foundation (CMSF) approached the federal government last year asking for $4 billion for a second mandate to extend the post-secondary bursary program another 10 years.

The $4 billion would consist of the original $2.5 billion endowment the Canada Millennium Scholarship Foundation received upon its establishment in 1998 plus an additional $1.5 billion.

The increased funding would not, however, translate into more students receiving larger bursaries. Instead, the larger sum of money would ensure that the foundation would be able to provide the same percentage of students’ fees as the old mandate.

Over the last nine years of the mandate, the percentage of funding the foundation was able to provide to students who received the bursary went from 30 per cent of a student’s loan to about 25 per cent, according to Andrew Parkin, executive associate director of CMSF.

“Tuition goes up and so on. If you want to have the same impact on students in terms of reducing their debt, you actually want to get more funding,” said Parkin. “It would take more money to have the same impact.”

Specifically, an additional $1.5 billion would ensure the foundation has the ability to keep up with the inflation that has occurred since its inception, along with the rising price of post-secondary education.

In October 2007, Statistics Canada reported that university students paid $4,524 in 2007-08, compared to $3,064 in 1998-99. The same report stated that tuition fees have increased annually by an average of 4.3 per cent over the last decade.

CMSF was established in 1998 and the foundation started distributing scholarships in 1999. The purpose of the foundation is to “improve access to post-secondary education so that Canadians can acquire the knowledge and skills needed to participate in a changing society and economy,” according to the 1998 Budget Implementation Act — the legislation that established the foundation.

On average, students who receive CMSF bursaries are awarded $3,000, according to the foundation’s website.

Each year, the foundation distributes $285 million in bursaries to undergraduate students across the country that meet the financial need and merit qualifications. The majority of the foundation’s bursaries are based solely on demonstrated financial need, wherein those with the highest student loans aspect are more likely to receive funding. The foundation reserves five per cent of its budget towards a merit-based bursary, which is awarded to top students who also demonstrate leadership and community involvement. Unlike with financially based bursaries, students must apply for the merit-based bursaries.

In 2007, 132,000 needs-based bursaries were distributed to students across Canada, according to Parkin.

CMSF has recently hired two lobbyists to fight for the renewal of the foundation and for the $1.5 billion increase, as reported in the McGill Daily.

“We have hired outside advice to help us present the case, and that’s what Ron Mclaughlin and Judith Moses do,” said Parkin.

Not all student organizations are pleased with the proposed renewal of the foundation.

Amanda Aziz, national chairperson of the Canadian Federation of Students (CFS) said that the foundation is Canada’s attempts at a needs-based national granting program.

“The federal government needs to step up and create a true national granting program to replace the foundation,” said Aziz.

A national granting program would be more reliable than the current foundation, said Aziz. “Although you will hear some groups try to say that the foundation is [a national granting] program, I would argue that it’s not,” said Aziz.

“As a student, you do not know that you’re going to get a millennium scholarship or a grant. Whereas if there was some sort of national granting program, when you [would] apply for financial assistance, a certain portion of it [would be] given as loans but a majority of it [would be] given in grants.

“That’s predictable,” she said.

Brittany Holt, a University 1 student, said that if the mandate is not extended “It would be a great loss to students.”

Students entering or continuing post-secondary studies in September ’08 will be the last group of students eligible for bursaries, said Parkin.

Until the federal budget is announced, the fate of the CMSF will hang in limbo.

Parkin said, “The government has indicated they will make a decision about [the future of the millennium scholarship] in the budget that is expected in the next few weeks.”

When asked about the fate of the CMSF, Parkin replied, “I have no idea, I honestly have no idea.”