What are Ancillary Fees?

Since the early 1990s, ancillary fees have been used by college and university administrations to circumvent popular opposition to tuition fee increases by charging additional fees outside of established tuition fee frameworks.

The regulatory framework governing ancillary fees was established in 1993-1994 by the Ontario government and is similar, but distinct for colleges and universities. For colleges, this framework is outlined in the Minister's Binding Policy Directive on Tuition and Ancillary Fees ('Binding Policy')¹ and further details are given in the Operating Procedure on Tuition and Ancillary Fees Reporting ('Operating Procedure').²

Ancillary fees can be applied to the costs of enhancing the cultural, social or recreational life of the students, or to provide other non-academic services to students. Ancillary fees are not to be levied to support capital projects or core academic operations, such as library, computing, and learning centre services. The Ministry's 'Binding Policy' clearly states that: "Colleges are not to establish additional fees for items considered to be covered by tuition fees for any programmes and courses eligible and reported for funding through the general purpose operating grant."

Funds supporting core operations can only be drawn from a general purpose operating grant, capital grant, or tuition fees—which are more strictly regulated than ancillary fees. The purpose of this policy is to prevent ancillary fees from becoming back door avenues for increasing tuition fees.

Between the 1995-1996 and 2003-2004 academic years, Ontario Colleges reported a nearly 240% increase in revenue generated from ancillary fees. According to the latest data available, in 2005-2006, average ancillary fees had risen to just over $670 for full-time college students in Ontario.



Ancillary fees represent approximately 23% of the overall fees that a full-time college student paid in 2005-2006. Data for university students is more up-to-date. Full-time Ontario undergraduate university students paid $729 in 2006-2007, representing 12% of their overall fees. The rapid growth of ancillary fees, particularly at colleges, is partially due to the practice of charging improper ancillary fees.

Sources:
1. Ministry of Training, Colleges and Universities, Minister's Binding Policy Directive on Tuition and Ancillary Fees, September 1, 2004.
2. Ministry of Training, Colleges and Universities, Operating Procedure on Tuition and 3. Ancillary Fees Reporting, September 1, 2006.