There has been an alarming 40 per cent decline in the number of Ontario students receiving loans following the introduction of more restrictive eligibility rules in 1995, according to internal provincial government documents.

Figures obtained by the National Post last month show the number of students receiving Ontario student loans plummeted from a high of 212,189 in 1995-1996 down to 130,687 in the current academic year.

"Access to student loans is one of our only barometers for determining how many low-income students are gaining access to colleges and universities," said Joel Duff, Ontario chairperson of the Canadian Federation of Students.

"There is no doubt that new government restrictions on loan eligibility haven't reduced the number of needy students. They have simply erased them from the equation."

During their first year in office, Ontario's Progressive Conservative government lowered the family income threshold for student loans and disqualified part-time students from receiving loans.

"Student loans are the only means of access to higher education for many lower-income students," Duff said. "The figures we see now indicate there are a growing number of qualified students who just can't afford to go to school at all."

Since 1995-1996, he added, average undergraduate arts tuition fees in Ontario increased by 40 per cent, with fees in some professional programs increasing as much as 700 per cent.

The Canadian Federation of Students is calling on the Ontario government to repeal student loan restrictions and reduce tuition fees in all programs.

"Soaring hydro fees are costing Ontarians millions of dollars. Soaring tuition fees are costing students their futures," Duff said.