Millennium Scholarship replacacement should be needs-based grants: CFS

Matt Abra, Staff

The current federal fund for student financial assistance, the Millennium Scholarship Foundation, is nearing its expiration date.

Student representatives from the University of Manitoba joined others from across the country to lobby for a new system of needs-based grants to replace the foundation at a conference organized by the Canadian Federation of Students (CFS) in Ottawa this past week.

In 1998, the Liberal government formed the Millennium Scholarship Foundation — a $2.2-billion endowment that provides scholarships, bursaries, and awards to students in need of financial assistance.

The foundation will conclude after the 2008-09 academic year, making this year “an important time for policymakers on the Hill,” according to Amanda Aziz, national chairperson of CFS.

The system of needs-based grants that CFS proposes to replace the Millennium Scholarship with would put more emphasis on non-repayable grants as opposed to merit-based student loan reimbursement, an approach that Aziz said is “much more generous” than what the Millennium Foundation now provides.

Currently Canada is the only country involved in the Organization for Economic Co-Operation and Development (OECD) without a national needs-based grant, according to UMSU president Garry Sran, who attended the lobby effort and was among other student leaders.

“What we’ve noted about the Millennium Scholarship Foundation is that there is a no accountability . . . and millions of dollars have been spent in areas with no benefit to students,” said Sran.

For example, Sran said that some of the money has been spent on flying financial aid administrators in and out of Ottawa.

Those vying to change the system also believe the model of the foundation is inefficient due to its middleman structure that creates unwanted bureaucracy.

“From our perspective, the best way for students to get the money they need . . . is for the money to go straight from government to student,” said Aziz.

CFS representatives from across Canada flew into Ottawa for the CFS annual lobbying event, which ran from Oct. 23 to 26. Aziz said that a CFS research report called “Strategy for Change: Money Does Matter” formed the basis of the meetings held between CFS members and the 150 MPs and Senators in attendance.

The conclusion of the research report is that “by re-organizing wasteful and ineffective education-related tax credits and tax havens, the federal government can offer more than $2 billion in need-based grants without increasing spending in the next budget,” according to a CFS media release.