PUBLIC EDUCATION FOR THE PUBLIC GOOD - a national vision for Canada's post-secondary education system
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PUBLIC
PUBLIC EDUCATION FOR THE PUBLIC GOOD • CANADIAN FEDERATION OF STUDENTS
EDUCATION
FOR THE PUBLIC
GOOD
a national vision for
Canada’s post-secondary
education system CANADIAN FEDERATION
OF STUDENTS
CANADIAN FEDERATION OF STUDENTS 338 Somerset Street West Ottawa, Ontario K2P 0J9 Tel: (613) 232 7394 Fax: (613) 232 0276 E-mail: info@cfs-fcee.ca Web: www.cfs-fcee.ca This report is available in digital form on the Federation’s website at www.cfs-fcee.ca The Federation is thankful to the following student photographers whose works were used under a Creative Commons license in this document: • Cheryl Maze Walker • Carol Dunlop • Abdul Kaznizili • Kirsten Humphreys • Jon Erickson • Jared Tyson
THE CANADIAN FEDERATION OF STUDENTS
With over 600,000 members, represented by more than 80 students’ unions in all ten provinces, the Canadian Federation of Students is the
voice of post-secondary students in Canada. The Federation and its predecessor organisations have represented students in Canada since
1927. The Federation represents students at the college, undergraduate, and graduate level, and students who study both full- and part-
time.
BRITISH PRAIRIES ONTARIO ONTARIO ONTARIO MARITIMES NEWFOUNDLAND
COLUMBIA Alberta College of Art Algoma University (CONT’D) (CONT’D) Cape Breton University & LABRADOR
University of British and Design Students’ Students’ Union Nipissing University Trent Central Student Students’ Union Grenfell College Student
Columbia Students’ Association Brock University Student Union Association Holland College Student Union
Union Okanagan Brandon University Graduate Students’ Union Marine Institute Students’
Ontario College of Art and Trent University Graduate
Camosun College Students’ Union Association Design Student Union Student Association University of King’s Union
Student Society Graduate Students’ Carleton University College Students’ Union Memorial University of
Student Federation of the University of Western
Capilano Students’ Union Association of the Students’ Association University of Ottawa Ontario Society of Mount Saint Vincent Newfoundland Students’
University of Calgary Carleton University Graduate Students University Students’ Union
Douglas Students’ Union Graduate Students’
First Nations University Graduate Students’ Association des Wilfrid Laurier University Union Graduate Students’
Emily Carr Students’ of Canada Students’ Association Union of the Memorial
Union étudiant(e)s diplômé(e)s Graduate Students’ University of New
Association Association étudiante de de l’Université d’Ottawa Association Brunswick Graduate University of
Kwantlen Student University of Manitoba la Cité collégiale Students’ Association Newfoundland
Association Queen’s University University of Windsor
Students’ Union Student Association of Society of Graduate and Students’ Alliance Student Union of NSCAD College of the North
College of New University of Manitoba George Brown College Professional Students University Atlantic Students’ Union
Caledonia Students’ University of Windsor
Graduate Students’ Glendon College Student Ryerson Students’ Union Graduate Students’ University of Prince
Union Association Union Continuing Education Society Edward Island Student
North Island Students’ University of Regina Union
Union University of Guelph Students’ Association of University of Windsor
Students’ Union Central Student Ryerson Organization of Part-time University of Prince
Northwest Community Association étudiante du Association University Students Edward Island Graduate
College Students’ Union Saint Paul University
Collège universitaire de University of Guelph Students’ Association York Federation of Student Association
Okanagan College Saint-Boniface Graduate Students’ Students Association générale des
Students’ Union University of Toronto at
University of Association Scarborough Campus York University Graduate étudiants de l’Université
College of the Rockies Saskatchewan Students’ Lakehead University Students’ Union Students’ Association Sainte-Anne
Students’ Union Union Student Union University of Toronto
Selkirk College Students’ University of Laurentian Association Graduate Students’ Union
Union Saskatchewan Graduate of Mature and Part-time QUÉBEC
Students’ Association University of Toronto
Simon Fraser Student Students Students’ Union Concordia Student Union
Society University of Winnipeg Laurentian University
Students’ Association University of Toronto Concordia University
Students’ Union of Graduate Students’ Mississauga Students’ Graduate Students
Vancouver Community Association Union Association
College Laurentian University Dawson Student Union
Association of Part-Time
Thompson Rivers Students’ General Undergraduate Students
Association Post-Graduate Students’
University Students’ of the University of Society of McGill
Union Association des Toronto University
Vancouver Island étudiantes et étudiants
University Students’ francophones de
Union l’Université Laurentienne
McMaster University
Graduate Students’
Association
TABLE OF CONTENTS
1 INTRODUCTION
2 STUDENTS PUSHED TO WORK MORE STUDY LESS
3 PUBLIC OPINION POLLING
5 RECOMMENDATIONS
6 POST-SECONDARY EDUCATION: FUNDING AND
GOVERNANCE
12 STUDENT DEBT IN CANADA
14 RESEARCH AND GRADUATE STUDIES
18 ABORIGINAL EDUCATION
20 EDUCATION STATISTICS
22 COSTING OF RECOMMENDATIONS
23 FURTHER READING
24 REFERENCES
INTRODUCTION - PUBLIC EDUCATION FOR THE PUBLIC GOOD
PUBLIC EDUCATION
FOR THE PUBLIC GOOD
INVESTING IN POST-SECONDARY EDUCATION IS ESSENTIAL
TO FUTURE ECONOMIC SUCCESS AND SOCIAL EQUALITY
While Canada’s economy made it through the 2008 global In the absence of national policies for post-secondary
recession in better shape than many other industrialised education, provincial policies dealing with access and funding
countries, many workers who lost their jobs during the have diverged dramatically from one another. Across the
recession remain unemployed. Now, the global economy looks country, students face significantly different challenges to
to be sliding back into recession as the United States and a pursuing higher education. This disparity threatens Canada’s
number of countries in Europe are unable to deal with massive long-term economic stability and social equality and impacts
debts resulting from tax cuts and stimulus spending. Most regional development and economic growth. In addition,
countries are facing the financial challenges of unemployment Aboriginal learners across Canada continue to be marginalised
and cuts to social programs because of the close integration of within the post-secondary education system, with enrolment
the global economy. Canada is no exception. rates significantly below peer groups from non-Aboriginal
With a relatively stable economy compared to other OECD populations in spite of marked population growth in Aboriginal
countries, Canada is emerging from the global recession in communities.
a stronger position than other comparable states. However, Three decades of public funding that has failed to keep up
Canada’s long-term economic prosperity is threatened by with enrolment growth has had a notable impact on students’
record-high levels of student debt and a post-secondary educational experience, with Canada’s colleges and universities
education system that is out of reach for an increasing number facing serious resource challenges. Class sizes have increased
of Canadians. significantly, while repairs to existing infrastructure have gone
Following the large loss of jobs during the recession, largely unaddressed. Tuition fee increases have far exceeded
particularly in the manufacturing sector, many Canadians the rate of inflation over the past two decades, causing the
returned to school for education and training. This, combined average student debt to increase to over $27,000. While the
with a large cohort of high school graduates, has produced one current funding model is unsustainable, there are realistic
of the largest classes of post-secondary students in Canada’s options within reach.
history. While students continue to pursue higher education, Taking advantage of Canada’s current relative economic
the saddling of a generation with billions of dollars in debt will strength, compared to other industrialised countries, requires
have implications for Canada’s economy and socio-economic leadership at the federal level and an important investment in
equality. students, colleges, and universities. This document outlines
This large student cohort reflects today’s economic reality: five recommendations for the federal government to build and
higher education is essential to a successful economy. While maintain a strong post-secondary system that trains a workforce
the recession saw a major downturn in Canada’s manufacturing capable of competing in today’s economy.
sector, the importance of a highly skilled workforce reflects a
change that has been underway for the past two decades.
CANADIAN FEDERATION OF STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 1
HIGH FEES PUSH STUDENTS TO WORK
MORE, STUDY LESS
Students are struggling to pay for their STUDENT SUBSTANTIALLY MORE STUDENTS SAY
post-secondary education more than any UNEMPLOYMENT STUDENTS TODAY WORKING
previous generation. Record-high tuition REMAINED HIGH THIS WORK DURING THE HAS A NEGATIVE
fees combined with the recession means PAST SUMMER SCHOOL YEAR EFFECT ON ACADEMIC
that those in vulnerable groups, including PERFORMANCE
Aboriginal and other racialised students
and those with disabilities, are facing
increasing barriers to post-secondary 25% 50% 75%
education. Higher costs and fewer
20% 40% 60%
summer employment opportunities have
contributed to an increasing number of 15% 30% 45%
students working during the academic
school year. 10% 20% 30%
Students have reported that working 5% 10% 15%
low-wage, low-skilled jobs while in school
often has a negative impact on students’ 0% 0% 0%
NO
2008 2009 2010 2011 1976 2008 YES
academic performance and the quality of
their educational experience, particularly PERCENT OF STUDENTS WHO WERE PERCENT OF STUDENTS WHO STUDENTS WHO WERE ASKED IF
UNEMPLOYED DURING THE SUMMER WORKED DURING THE YEAR, WHILE THEY THOUGHT WORKING HAD A
when one is working more than 20 hours ATTENDING UNIVERSITY NEGATIVE EFFECT ON ACADEMIC
per week. PERFORMANCE
2 PUBLIC EDUCATION FOR THE PUBLIC GOOD CANADIAN FEDERATION OF STUDENTS
CANADIANS SUPPORT
PUBLIC OPINION POLLING
PUBLIC EDUCATION
SHOULD TUITION FEES BE
INCREASED, FROZEN, OR
WHAT IS THE MOST IMPORTANT THING FOR
GOVERNMENT TO DO FOR COLLEGE AND A MAJORITY
OF CANADIANS
REDUCED? UNIVERSITY EDUCATION?
50% 50%
AGREE THAT:
LOWER TUITION FEES
REDUCED - 37% AND STUDENT DEBT - 52%
40% FROZEN - 46% 40% CREATE MORE SPACES FOR
QUALIFIED STUDENTS - 19%
INCREASED - 13%
REDUCE CLASS SIZES BY HIRING
30% 30%
MORE PROFESSORS - 13% • a university or college education is
20% 20%
INVEST MORE IN RESEARCH - 11%
more important than ever to get by
10% 10% in today’s society;
0% 0% • the federal government should
attach conditions to dedicated
THE QUALITY OF EDUCATION HAS SUFFERED IT IS MORE DIFFICULT TODAY TO GET A UNIVERSITY
transfer payments to the provinces;
BECAUSE OF INADEQUATE GOVERNMENT FUNDING OR COLLEGE EDUCATION THAN IT WAS TEN YEARS • the government should invest more
AGO
in post-secondary education, even
AGREE - 51% AGREE - 47%
if it means they have to pay slightly
DISAGREE - 33% DISAGREE - 39% more in taxes;
NO OPINION NO OPINION • the government should invest in
making college and university more
affordable, even if it means a small
increase in taxes; and
66%
of Canadians want the federal government to set • a university or college education
conditions on transfer payments to ensure that should be provided free for anyone
provinces use the money as intended.
who cannot afford it.
61%
of Canadians think governments are not doing enough to
make sure that everyone who is qualified has a chance to
get a university or college education. Results are taken from a Harris/Decima random telephone survey of 2,000 adult
Canadians conducted between April 14 and April 27, 2011. The poll was commissioned
83%
by the Canadian Association of University Teachers and the Canadian Federation of
of Canadians are against increases in tuition fees, with Students. National results are considered accurate within 2.2 percentage points, 19
times out of 20.
35% supporting a reduction from current levels.
CANADIAN FEDERATION OF STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 3
RECOMMENDATIONS
RECOMMENDATIONS
DEVELOP AND IMPLEMENT A NATIONAL VISION FOR A HIGH QUALITY AND ACCESSIBLE SYSTEM OF POST-
SECONDARY EDUCATION
The federal government should, in cooperation with the provinces, implement a federal Post-
Secondary Education Act modeled after the Canada Health Act, accompanied by a dedicated cash
transfer with funding allocated to:
• restoring per capita funding to 1992 levels;
• reducing tuition fees to 1992 levels; and
• eliminating deferred maintenance at Canada’s colleges and universities.
OPEN DOORS: REDUCE STUDENT DEBT
Increase the value and number of non-repayable grants available to students by redirecting funds
currently allocated to education-related tax credits and savings schemes to the Canada Student
Grants Program, and allow graduate students to qualify for grants under the Program.
FOSTER INNOVATION: FUNDING FOR RESEARCH AND GRADUATE STUDIES
Increase the number of Canada Graduate Scholarships to be consistent with average growth
in the program since 2003 and to be distributed proportionally among the research councils
according to enrolment figures.
FULFILL CANADA’S OBLIGATIONS: FUND ABORIGINAL EDUCATION
Remove the funding cap on increases to the Post-Secondary Student Support Program and
ensure that every eligible First Nations and Inuit learner is provided adequate funding to
pursue post-secondary education.
TRACK SUCCESS: MEASURE RESULTS
Increase funding by $10 million to Statistics Canada’s branch for the collection and analysis of post-
secondary education statistics.
CANADIAN FEDERATION OF STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 5
CANADA’S POST-SECONDARY
EDUCATION SYSTEM
For over half a century, the federal the way for a shift towards private
government has recognised the crucial funding as the main source of revenue
role post-secondary education plays in for Canada’s universities and colleges.
driving economic growth, innovation, Today, post-secondary institutions rely
and increasing social and economic largely on private sources of funding,
equality. The substantial public primarily through tuition and ancillary
investments that led to the expansion of fees, to cover operating costs.
universities and the creation of colleges
in the 1960s were based on the belief Nearly half of the operational funding
that access to post-secondary education for universities today comes from
should be dictated by ability and desire, students themselves, with institutions
not financial means. like the University of Toronto receiving
more from students than from the
Canada’s public post-secondary government.
education system has become markedly
less public over the past three decades. Prior to these cuts, access to post-
Beginning in the 1980s, the federal secondary education was similar from
government limited increases of transfers province to province.
to the provinces for post-secondary Today, tuition fees vary widely and
education, effectively decreasing per- provincial residence is now a major factor
student funding. In 1995, the federal of the individual cost of post-secondary
government made one of the deepest education.
funding cuts in history, slashing transfers In order to both reduce inequalities
to the provinces for social programs by across socioeconomic groups and
$7 billion. In every province, with the regional disparities and increase the
exception of Québec, this funding cut country’s competitiveness internationally,
was passed directly to students in the the federal government must once again
form of massive tuition fee increases. make affordable, high quality post-
Despite the federal government posting secondary education a high priority.
multi-billion dollar surpluses in the late
1990s and early 2000s, funding for post-
secondary education was never restored.
These cuts led most provinces to spend
less on higher education and are pavingPOST-SECONDARY EDUCATION: FUNDING AND GOVERNANCE
GOVERNMENT SPENDING: $13.7billion
A QUESTION OF PRIORITIES Annual cost to the
government of
planned corporate
tax cuts by 2013
Canadians overwhelmingly believe that the identified investments in social programs,
federal government must provide more reducing unemployment, or reducing poverty
support to post-secondary education. While as their top priority. Despite this, the federal
Canada’s social programs are often targeted government has prioritised tax cuts and There is not enough
for budget cuts, funding such programs is deficit reduction over needed investments in
necessary for Canada to maintain its standard Canada’s social programs.
revenue to pay for the
of living and develop its economy. programs and services
Providing adequate funding for post-
Current funding priorities, including a fiscal secondary education is well within the Canadians cherish
capacity that has been reduced by multi- government’s reach and will do far more to most; but that is a
billion dollar tax cuts, undermine the federal guarantee Canada’s future economic success political problem rooted
government’s ability to adequately fund than tax cuts or credits.
training the country’s future workforce and
in years of tax cuts for
retraining out-of-work Canadians . corporations and the
Investments in social programs, such as
health care and post-secondary education,
regularly rank as top priorities for Canadians.
60% of Canadians agree that investing in
wealthy.
CANADIAN CENTRE
FOR POLICY
In a recent poll conducted by Harris-Decima, social programs and reducing poverty ALTERNATIVES
only 8 per cent of Canadians identified tax and unemployment are higher priorities Alternative Federal
cuts, and 12 per cent deficit reduction, as than tax cuts and deficit reduction. Budget 2010
the most important priority for the federal
government. By comparison, over 60 per cent
CANADIAN FEDERATION OF STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 7FEES ARE A BARRIER: LET THE
INCOME TAX SYSTEM DO ITS JOB
TUITION AND OTHER FEES
GOVERNMENT FUNDING
100%
80%
Since the federal funding cuts of the mid- $1 million, thus justifying tuition fee increases,
60%
nineties, the cost of post-secondary education the reality is much more humble.
has been passed on to students. Where The Organisation for Economic Co-operation
40%
government grants used to cover up to 80 and Development (OECD) reports that male
per cent of an institution’s operating budget graduates earn only an additional $80,000 over
20%
less than 30 years ago, they now covers just their lifetime. The return is substantially lower for
over 50 per cent, with tuition fees covering the female graduates who, on average, earn only an
0%
1979 1989 1999 2009
difference (Figure 1.1). additional $46,000.
While government funding has been partially Given that at least 70 per cent of new jobs
restored, tuition fees have continued to rise in require a degree, post-secondary education is
FIGURE 1.1: UNIVERSITY OPERATING REVENUE
DIVIDED BETWEEN PRIVATE FUNDING most provinces across the country. In the last becoming more and more of a prerequisite for
AND GOVERNMENT FUNDING fifteen years, tuition fees have become one of participating in the labour market and earning
the largest expenses for many university and an average income, not a guarantee of future
TUITION FEES college students, on average increasing over wealth.
PUBLIC TRANSPORTATION five times the rate of inflation (Figure 1.2). High
FOOD and rapidly increasing tuition fees limit access The fairest method of financing the post-
50% RENT secondary education system is through the
to post-secondary education for students
from low- and middle-income backgrounds. progressive income tax system.
40% At their current rate of increase, tuition fees The system ensures that the wealthy and poor
are estimated to outpace all other student are taxed in a fair manner, reflecting their
expenses combined in 15 years. respective ability to contribute and the personal
30%
Statistics Canada has determined that students economic benefit obtained as a result of their
from low-income families are less than half as education.
20% likely to pursue a university education than Canadians have made it clear that they are
those from high-income households. comfortable with increased government
A survey conducted by the national statistical spending to improve access to education.
10%
agency found that the most frequently-reported According to a recent Harris/Decima public
reason high school students did not pursue opinion poll, Canadians rank tuition fee
0% post-secondary education was financial. reductions as the top priority for government
investment in education.
2000
2001
2001
2003
2004
2005
2006
2007
2008
2009
2010
Tuition fees act as a flat tax, a cost applied to
all students at the same rate regardless of their The same poll also found that 67 per cent of
financial resources. While some argue that post- Canadians want the federal government to
FIGURE 1.2 TUITION FEES GROW FASTER THAN secondary education will significantly increase a exercise more control over transfers to the
ALL OTHER STUDENT COSTS student’s long-term earning potential by up to provinces for post-secondary education.POST-SECONDARY EDUCATION: FUNDING AND GOVERNANCE
NATIONAL LEADERSHIP
NEEDED
Polling results from Quebec and Newfoundland ratio of students to full-time faculty members
TUITION FEES
and Labrador residents show that the majority in increased by almost 40 per cent. 50%
INFLATION
each province support free, universal education. The 2009 federal budget allocated $2 billion
The 2007 federal budget contained the to college and university infrastructure, 40%
largest increase to core transfer payments for focused entirely on new building projects.
post-secondary education in the past fifteen While the new infrastructure is welcome, it will
years, increasing transfer payments by $700 simply increase the amount of funds needed 30%
million. Although this was the largest increase to maintain and renovate infrastructure on
in recent memory, cash transfer payments for campuses, a cost that is already over one
20%
post-secondary education are still roughly $1.3 billion dollars per year.
billion short of 1992 levels when accounting for In the meantime, university and college
inflation and population growth. budgets are strained to such an extent that 10%
The benefits of investing in higher education deferred maintenance poses serious health
go well beyond the individual. A highly and safety risks at many schools across the
0%
educated workforce increases the tax base and country. In 2009, the Canadian Association of
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
reduces the cost of a number of other publicly- University Business Officers estimated that
funded social programs, including health care, the total value of deferred maintenance on
public safety, and employment insurance. Canadian campuses was more than $5 billion, FIGURE 1.3 TUITION FEES GROW
A recent report by the OECD found that the half of which is considered urgent, a 35 per DRAMATICALLY FASTER THAN INFLATION
direct public benefit of investing in post- cent increase in less than a decade.
64%
secondary education was in excess of $100,000 Despite the substantial reinvestment in post-
per individual, an amount that exceeds the secondary education in recent years, the
costs by $62,141. federal government has done little to ensure
Since the cuts to federal transfers payments that these investments will have their desired
in the 1990s, the quality of post-secondary impact.
of Canadians
education has declined. Class sizes have The lack of regulations governing transfer believe that
increased substantially, while at the same payments is only a symptom of the lack of the cost of a
time institutions have pushed to casualise identified vision for Canada’s post-secondary post-secondary
the academic workforce, replacing full-time education system. Without such a vision or
education is too
tenured faculty members with overworked and regulatory framework, federal investments will
high.
inadequately compensated contract academic continue to be undermined and devalued.
staff. In addition, between 1990 and 2006, the
CANADIAN FEDERATION OF STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 9TOWARDS A POST-SECONDARY EDUCATION ACT ACCOUNTABILITY FOR FEDERAL tuition fees differ greatly from province to FUNDING NEEDED province (Figure 1.4). The federal government has minimised its responsibility to ensure that federal funds FEDERAL CASH TRANSFERS FOR for social programs are used as intended POST-SECONDARY EDUCATION and as a result, provincial governments have been free to misallocate federal To return to a level of federal funding transfers intended for post-secondary equivalent to the level before the cuts of education. Although the federal the mid-nineties would mean a dedicated government is one of the single largest post-secondary education transfer to the sources of funding for post-secondary provinces of approximately $4.9 billion. education, there is no mechanism to ensure The federal government currently allocates that the monies transferred to provincial just over $3.5 billion as part of the social governments actually make it into the post- transfer; however, there is no guarantee secondary system. for the provinces to spend this money Under previous federal-provincial cost- on increasing access to post-secondary sharing models, the provinces had to education. Since the funding cuts in invest their own funds in order to receive the early 1990s, full-time enrolment has federal monies. If a provincial government increased 24.85%, resulting in an increase chose to cut funding, federal transfers were of $637 million in costs to the system that reduced by a proportionate amount. The are yet to be addressed by the federal current block-funding model—the Canada government. Social Transfer—has no requirement that Additionally, similar to the health care provincial governments maintain their system, university and college-related costs funding in order to receive federal money. increase at a much higher rate than the Indeed, there have been numerous standard consumer price index. Over the examples of provinces receiving additional previous eighteen years there has been, federal funds that then reduce their own on average, an annual post-secondary contribution. For example, in 2008, the education-related inflation of three per Government of British Columbia cut cent, per year, or about $1.7 billion over funding to universities by $50 million in the that period. same year that it received over $110 million When compared to current federal in new post-secondary education funding funding levels, there is a funding gap of from the federal government. Due to approximately $2.3 billion. variations in provincial funding and policies,
POST-SECONDARY EDUCATION: FUNDING AND GOVERNANCE
$5,318
AB $3,588
MB $2,624
$4,802 $2,415 NL
BC QC
$5,431
SK $5,131
$6,307 $5,516 PEI
ON NB
$5,495
A FEDERAL POST-SECONDARY EDUCATION ACT NS
The adoption of a post-secondary education act would establish
conditions on the provinces for receiving post-secondary
education transfers payments. Such legislation would require
provinces to uphold principles similar to those found in the FIGURE 1.4 MAP OF
Canada Health Act: public administration, comprehensiveness, TUITION FEES ACROSS CANADA
universality, portability, and accessibility. In return for upholding
these principles, provincial governments would receive Average domestic undergraduate arts and science
adequate and predictable funding from the federal government. tuition fees in 2011-12.
RECOMMENDATION 1
The federal government should implement a federal Post-Secondary Education Act in
cooperation with the provinces, modeled after the Canada Health Act, accompanied
by a dedicated cash transfer with funding allocated to:
• restoring per capita funding to 1992 levels;
• reducing tuition fees to 1992 levels; and
• eliminating deferred maintenance at Canada’s colleges and universities.
CANADIAN FEDERATION OF STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 11$2.3billion STUDENTS TODAY ARE
Amount that the Canada Student
Loans Program expects to lend for the
2011-12 year.
BURIED IN DEBT
$2.52 billion
Approximate cost of education tax
Past federal and provincial government
decisions are forcing students to take on more
education-related debt than any previous
generation while middle class earnings have
THE IMPACT OF DEBT ON STUDENTS
AND SOCIETY
Many potential students are reluctant to take
on the required debt and associated risk
credits and savings schemes for the largely stagnated in the past twenty years. As required to pay for a college or university
2010-11 year. a result, Canadians are making sacrifices to degree.
prepare themselves for an evolving workplace.
Research has found that debt aversion is
Skyrocketing tuition fees and the prevalence strong among those who chose not to pursue
of loan-based financial assistance have pushed post-secondary education. Of the 70 per cent
student debt to historic levels. of high school graduates who cite financial
[Canada Education
This past year, almost 430,000 students were reasons as the main factor of not pursuing
Savings Grants]’s give forced to borrow in order to finance their post-secondary education, one in four cited
scarce public funds to education. accumulation of debt as the biggest deterrent.
the wrong households... The aggregate of loans disbursed by the Those from marginalised communities and
the CESG program Canada Student Loans Program, less the low-income backgrounds and single parents
should be discontinued. aggregate of loan repayments received, is are more likely to be strongly averse to
increasing by nearly $1 million dollars a day. accumulating student debt.
KEVIN MILLIGAN In September 2010, the total amount of Research finds that debt levels have a direct
UBC Economist student loans owed to the government impact on success and retention. Students
reached $15 billion, the legislative ceiling set with higher debt levels are far less likely to
by the Canada Student Financial Assistance complete their degree or diploma.
Student debt loads have Act. In response, the government altered the After graduation, student debt distorts career
definition of “student loan” to exclude over
never been higher... The choice, especially among professionals, which
$1.5 billion in federal student debt. in turn undermines access to health care and
result is many students
Even with this new definition, it is expected legal aid.
fall into a hole they can’t that federal student debt will hit $15 billion by Studies of medical and law students found
easily climb out of. January 2013. that debt levels prompt these students to seek
LAURIE CAMPBELL, This figure only accounts for a portion of total higher paying jobs in fields or regions that
Executive Director - Credit Canada student debt; it does not include provincial are not necessarily their first choice or where
and personal loans, lines of credit, and demand is highest. Student debt appears to
education-related credit card debt. be driving committed young doctors awaySTUDENT DEBT IN CANADA
from family practice and young lawyers away from public and those from high-income backgrounds, as individuals from low-income
community service work. families often do not have the funds necessary to invest in the first
High levels of debt also discourage individuals from starting families, place.
working in the public service, purchasing a home, and pursuing low This $2.5 billion, if used instead for upfront grants, could allow every
paying or volunteer experience in a career-related field of study that dollar loaned by the Canada Student Loans Program (CSLP) to be a
may be necessary to get a middle-income job. non-repayable grant. The CSLP expects to lend approximately $2.3
billion during the 2011-12 academic year. If the amount of money the
federal government spent on savings schemes and education-related
INVEST IN EFFECTIVE MEASURES: GRANTS NOT LOANS tax credits each year is simply shifted to the Canada Student Grants
While creating the Canada Student Grants Program was an important Program, student debt owed to the federal government could be
first step to meaningfully reducing student debt, a larger investment greatly reduced.
in up-front grants is required. The tax credit and education savings
schemes currently operated by the federal government allow for
personal income tax savings on education-related costs and a
higher rate of return on education-related savings, respectively. The
RECOMMENDATION 2
indications are, however, that the total cost of the programs will Increase the value and number of
exceed $2.5 billion this year, making them by far the government’s non-repayable grants available to
most expensive direct spending measure. students by redirecting funds allocated
Despite their large price tag, the education tax credit and savings to education-related tax credits
programs are very poor instruments to improve access to post- and savings schemes to the Canada
secondary education and relieve student debt. All students qualify Student Grants Program, and allow
for tax credits, regardless of financial need, which disproportionatly graduate students to qualify for grants
benefits those with the lowest amount of debt and those from under the Program.
high-income backgrounds. Savings schemes have largely benefitted
CANADIAN FEDERATION OF STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 13FUNDING FOR RESEARCH AND GRADUATE STUDIES
SUPPORTING RESEARCH AND INNOVATION,
INVESTING IN CANADIANS
Investment in graduate studies provides the keeping pace with the increases in graduate 150,000
foundation for long-term innovation and trains student enrolment.
the highly skilled workers and researchers that In addition, recent federal budgets have
140,000
are needed to respond to the economic and also directed research funding to the short- 130,000
social challenges Canada faces now and in the term priorities of the private sector, thus
future. undermining basic research and long-term
120,000
Despite the relatively high level of university innovation. The 2009 budget provided 110,000
graduation, Canada ranks last among peer funding to the Social Sciences and Humanities
100,000
countries for PhD graduation (Figure 3.3), Research Council (SSHRC) for additional
notwithstanding a dramatic expansion of Canada Graduate Scholarships (CGS), which 90,000
graduate studies over the last ten years. was greatly needed, but stipulated that
80,000
Enrolment in graduate studies increased by they only be given for commercialisable
41.5 per cent between 1998 and 2008 (Figure research. Research funded by the Natural 0
1998
2000
2002
2004
2006
2008
3.1). However, there have been only modest Sciences and Engineering Research Council
funding increases to the federal research (NSERC) has also become increasingly
directed toward government-prioritised FIGURE 3.1: GRADUATE ENROLMENT
granting councils and scholarships that make
graduate education affordable. The stagnation sectors of the economy rather than the
in federal funding for research and graduate academic community. This approach of $8,000
education limits the number of masters and directing research priorities undermines the
$7,000 ACTUAL TUITION FEES
doctoral students that receive grants, thus independence and peer review process of INFLATION
reducing the pool of highly skilled researchers Canada’s research community and does $6,000
to those who are able to afford it personally or a disservice to the role of curiosity-based $5,000
who are able to secure limited institutional or research in public universities.
$4,000
industry funding.
$3,000
Leading up to the 2009 budget, there had BARRIERS TO ACCESS
$2,000
been modest improvements to research Graduate students often face a variety of
funding delivered through the federal granting challenges in pursuing their studies, including
$1,000
councils. However, cuts contained in the 2009 limited funding options, an increasingly $0
budget undermined the progress that had commercialised and restrictive research
1991
1993
1995
1997
1999
2001
2003
2005
2007
2009
2011
been made towards recovering from the environment, rising tuition fees, little access to
larger cuts of the 1990s. These reductions have needs-based grants, and high levels of student FIGURE 3.2: GRADUATE TUITION
prevented funding for university research from debt from previous degrees. This year, average FEES COMPARED TO INFLATION
CANADIAN FEDERATION OF STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 15800 SPENDING
700 RETURN ON INVESTMENT The failure to fund
$50
600 world-class universities
500 is one explanation for
$40
400
Canada’s comparative
300
weaknesses in
200 $30
high-level academic
100
achievement—and
0 $20
its associated
GERMANY
NORWAY
ITALY
SWEDEN
SWITZERLAND
FINLAND
U.K.
AUSTRIA
AUSTRALIA
NETHERLANDS
IRELAND
DENMARK
U.S.
BELGIUM
FRANCE
JAPAN
CANADA
weaknesses in
$10
innovation.
2003 2004 2006 2007
CONFERENCE
BOARD OF CANADA
FIGURE 3.3 PHD GRADUATES FIGURE 3.4: RETURN ON INVESTMENT Education and Skills Report Card
(Number of PhD graduates per 100,000 people, aged 25-29) IN COMMERCIALISATION
(In millions of dollars)
tuition fees for graduate students increased the broader research aims of the country. highlighted the need for Canada to increase
by 3.7 per cent, to over $5,600 (Figure 3.2). Further, it discourages corporate investment in the sophistication and innovative nature of
Despite their significant investment of time and their own research facilities, leading to fewer private sector research and development. This
money, a recent study indicated that doctoral employment opportunities for researchers in year, Canada slipped from seventh to eleventh
graduates earn little more–and in some an already difficult job market. The result of place for university-industry collaboration
instances less–than those with only a master’s this restructuring is that many highly-skilled and from eighth to ninth place for the quality
degree. workers are often unable to contribute to their of scientific research institutions, but more
full potential. dramatically ranked 24th and 25th on capacity
Federal funding geared towards market-driven for innovation and company spending on
COMMERCIALISATION OF RESEARCH research and development, respectively.
research programs has resulted in the private
The drive to commercialise university research sector increasingly relying on public universities Canada ranked eleventh for innovation in
has a number of negative consequences. for research and development. This corporate the report, behind the United States, Japan,
As jobs in government research facilities are reliance contributes directly to Canada lagging Germany, Sweden, and Switzerland, among
becoming increasingly scarce, universities are behind comparable countries in private-sector others.
replacing tenure-track professors with contract investment in research and development and As this trend continues, private sector research
academic staff and graduates are having a the products those labs produce. and development infrastructure is giving way to
harder time finding employment in their field. a publicly-backed university system that does
Canada has consistently ranked low on indexes
Replacing the public interest with private that measure innovation. The World Economic not have a consistent track-record of bringing
sector commercialisation as the driving Forum’s annual competitiveness report innovations to the marketplace.
motivator for university research undermines
16 PUBLIC EDUCATION FOR THE PUBLIC GOOD CANADIAN FEDERATION OF STUDENTSFUNDING FOR RESEARCH AND GRADUATE STUDIES
Since the late 1990s, a number of initiatives have been undertaken to levels of funding and support for graduate students, Canada’s
transform public university infrastructure to meet the government’s research and innovation capacity will continue to fall behind that
commercialisation objectives, such as requiring publicly-funded of other countries. An investment in graduate students will help
research to seek direct, private sector investment. produce the highly skilled workers that Canada needs to compete in
University research geared towards commercialisation is focused the global economy.
on producing products that can yield short-term results, with little Students often enter graduate programs with substantial debt from
consideration of long-term research and innovation goals. As their previous degree. However, there are currently no need-based
research funding is increasingly directed in this way, basic research grants available to graduate students from the federal government.
and academic pursuits are undermined. Students from low-income families have a harder time affording
Recent increases in funding for the federal research granting graduate studies due to their lack of grants (which they they would
councils, especially those resources dedicated to graduate students, have had access to in their undergraduate degrees). In the absence
have disproportionately benefited applied research programs of a grants program, Canada will continue to lose many highly
that are designed to pursue a commercialised agenda over basic, qualified people to the labour market before they finish their studies
curiosity-driven research. because of individual financial challenges.
The encroachment of the private sector into universities undermines Canada Graduate Scholarships (CGS) provide merit-based funding
the independence of the academy, as money for research is directly to graduate students. These scholarships are administered
increasingly tied to entities outside the normal academic system. through the granting councils and are one of the main mechanisms
These corporations often influence decisions that are normally left for the federal government to fund graduate studies. The limited
to the research community, such as investment in maintenance, number of scholarships available has meant that many of the best
research facilities or new infrastructure. The research community can and brightest researchers are unable to maximise their potential.
also come under pressure from private interests that fund research Increasing the number of CGSs would help promote graduate
to not report results that are against the economic interests of the research and ensure that graduate students have the resources
private funding source. Despite the threats of an increasingly private to focus on their research, which will pay long-term dividends for
funding model to the independence of university research, there is Canada’s research capacity and innovation.
currently no whistle-blower protection for graduate students who
wish to report research misconduct.
RECOMMENDATION 3
GRADUATE STUDENT FUNDING Increase the number of Canada
Although funding for the granting councils has increased slightly in Graduate Scholarships to be
recent years, it has never fully recovered from the cuts of the 1990s. consistent with average growth in
Despite the fact that funding has failed to keep pace with the rising the program since 2003 and to be
enrolment of graduate students, the 2009 federal budget cut $148 distributed proportionally among
million from the granting councils. This came at a time when most
the research councils according to
countries were investing heavily in their university research capacities.
enrolment figures.
Funding for discovery-type grants in the social sciences and
humanities lags far behind the applied sciences. Without proper
CANADIAN FEDERATION OF STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 17Improving the social and
economic well-being of the KEEPING THE PROMISE:
Aboriginal population is not
only a moral imperative; it is FUNDING FOR ABORIGINAL
a sound investment which will
pay substantial dividends in the
EDUCATION
coming decades. Aboriginal
education must be a key
component in any such effort.” ABORIGINAL LEARNERS Lower Aboriginal participation rates in post-
Post-secondary education plays a vital role secondary education can be attributed to the
CENTRE FOR THE STUDY significant and complex barriers that Aboriginal
OF LIVING STANDARDS in improving the standard of living and
developing a more equitable society. students face.
2009 Research Report
Targetted investments in post-secondary Research has found that Aboriginal people
are much more likely to be debt-averse and
$400
education are critical improvements to the well
billion being of Aboriginal peoples and communities.
Canada’s Aboriginal population is growing
more reluctant to use loan-based programs if
they are in financial need. Aboriginal students
are also more likely to enter post-secondary
at six times the rate of the non-Aboriginal education at a later age given the higher
the potential GDP contribution of population. According to the 2006 census, over likelihood they will have dependents. This leads
Aboriginal Canadians over the one million people, roughly four per cent of to higher costs such as childcare and relocation.
next twenty years if Aboriginal Canada’s population, identified as Aboriginal.
education levels rose to match Additionally, approximately 20 per cent of
Of these, 48 per cent were under the age of the First Nations’ population is unemployed,
those of the general population. 24. It is estimated that over 300,000 Aboriginal including a staggering 41 per cent of those in
youth could enter the labour force in the next the 15-24 year age group. Unemployment limits
15 years alone. financial resources for families to pay for the
In May 2009, the Centre for the Study of Living rising costs of college or university.
[The] two percent increase to the Standards reported that closing the educational
overall [PSSSP] budget does not gap would lead to an additional $179 billion
meet the increasing costs of tuition in direct GDP growth, and over $400 billion in FUNDING FOR ABORIGINAL EDUCATION
and other expenses, such as cost total growth over the next 20 years. Currently, the federal government provides
of living and books, and it has been Education’s place as a right for Aboriginal financial assistance to status First Nations and
recommended by the Standing peoples comes from a series of treaties signed Inuit students through the Post-Secondary
over the course of several decades and is Student Support Program (PSSSP), which was
Committee on Aboriginal Affairs
recognised in Canada’s Constitution. created to alleviate the financial barriers faced
and Northern Affairs that it be by Aboriginal students by covering the costs of
eliminated for the PSE program. However, despite the clear economic and tuition fees, books, supplies, travel, and living
moral necessity to ensure access to education expenses.
INDIAN AND NORTHERN for Aboriginal peoples, funding for their
AFFAIRS CANADA education has remained stagnant for over a In 1968, the Department of Indian Affairs
Evaluation of the Postsecondary and Northern Development Canada (INAC)
Education Program decade.
began providing direct funding for FirstABORIGINAL EDUCATION
Nations and Inuit students to pursue post- each year. It is estimated that between 2001 required. Beyond this, an additional $233
secondary education. In 1977-78, only 3,600 and 2006, over 10,500 people were denied million is needed to address the roughly 19,000
students received funding; by 1999-2000, over funding, with roughly 3,000 more denied students that have previously been denied
27,000 students were funded. Nevertheless, evey subsequent year. Due to the shortfall funding. This funding would support a total
educational attainment levels of Aboriginal in funding, priority is often given to shorter of roughly 40,000 students across Canada.
peoples remain significantly lower than the college programs—to the detriment of The funding disbursed through the PSSSP
overall population. those interested in pursuing more expensive has a proven track record, as most Aboriginal
Before 1992, funding was determined by professional or graduate programs of study. students who receive funding through the
the number of eligible students and their According to the Assembly of First Nations, a PSSSP succeed in completing their studies
expenses. Between 1992 and 1997, the model total of $569 million is required to ensure that and go on to find meaningful work. Regardless
shifted from per-student funding to block no Aboriginal student is denied access to post- of their place of residence, the majority of
funding, to be administered by local Band secondary education due to financial barriers, Aboriginal graduates return to work in their
Councils. and that those students who are funded communities and are employed in their field
receive an adequate level of support. of study, achieving economic self-reliance
In 1996, increases in funding were capped at a and helping to develop healthy and stable
maximum of two per cent annually. As a result As Aboriginal Affairs and Northern communities.
of this limit on increases, funding has been Development Canada currently provides $306
unable to keep up with increasing living costs, million, an additional $263 million would be
inflation, and tuition fees, which increased by
four per cent on average this year alone.
Approximately 27,000 Aboriginal students
received financial assistance prior to the
RECOMMENDATION 4
implementation of the funding cap. By 2006, Remove the funding cap on increases to the Post-
the number had fallen to just over 22,000. Secondary Student Support Program and ensure that
The lack of funding has meant communities
every eligible First Nations and Inuit learner is provided
administering the funds are faced with adequate funding to attend post-secondary education.
difficult decisions about who receives funding
CANADIAN FEDERATION OF STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 1920 PUBLIC EDUCATION FOR THE PUBLIC GOOD CANADIAN FEDERATION OF STUDENTS
EDUCATION STATISTICS
TRACKING SUCCESS: COLLECTING
EDUCATION STATISTICS
Collectively, the federal and provincial governments spend billions will also make it extremely difficult to conduct further research
of dollars each year on post-secondary education, regarding the post-secondary education system.
but adequate data to fully analyse the effectiveness of that While the impact of discontinuing this research is significant, the
spending are not collected. A 2006 report by the OECD noted that amount of funding necessary to properly conduct research on
Canada could not provide data on 57 of the 96 post-secondary students and the post-secondary system is relatively small. An
education indicators used to compare countries. Although the increase of $10 million, less than 0.3 per cent of what the federal
Council of Ministers of Education has started to fund the collection government spends on post-secondary education, would establish
of some of the missing statistics by Statistics Canada, it is not a the resources needed to undertake this research.
sustainable solution to the federal government’s underfunding of
the education branch of Canada’s national statistical agency, nor
does it make up for the entire shortfall.
For example, Canada does not currently collect information about
the age of students when they enter or leave the post-secondary
RECOMMENDATION 5
education system, nor are data collected on completion rates for Increase funding by $10 million
higher education or the average length that a student spends in to Statistics Canada’s branch
the post-secondary system. In a more general sense, Canada lacks for the collection and analysis
much of the data regarding both the inputs and outcomes of the of postsecondary education
post-secondary education system. statistics.
In May 2010, the Department of Human Resources and Skills Re-introduce the mandatory long-
Development Canada announced that it would cease funding the form census.
Youth in Transition Survey (YITS) and the National Longitudinal
Survey on Children and Youth. These studies are primary sources Undo cuts to post-secondary
of information on who pursues post-secondary education and who education-related statistics
does not. Amongst other things, they provide vital information collection programs.
on students, their first post-graduation interaction with the labour
market, and the relationship between education and employment.
The YITS results are necessary for fulfilling Canada’s international
commitment to provide the OECD with comparable data on post-
secondary education.
Without the data supplied by these studies, it will be difficult for
governments to make informed decisions about post-secondary
education policies and priorities. The absence of this information
CANADIAN FEDERATION OF STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 21POST-SECONDARY EDUCATION:
A NECESSARY INVESTMENT
With an annual investment of $2.24 billion, and the adoption of a post-secondary education act, the federal government can
ensure that the Canadian public post-secondary education system remains accessible and of high quality. A single investment
of $5.2 billion, spread across several years, will address outstanding deferred maintenance and safety issues at institutions and
ensure that previously-denied Aboriginal learners receive requisite funding. Investing in post-secondary education is not an
option, but a necessity. It will pay substantial dividends in economic growth and ensure that everyone in Canada can benefit from
higher education and an educated workforce.
COST OF PROPOSALS
(amounts in millions)
CREATION OF NEW PSE ACT $ 0
ADDRESSING TUITION FEE INCREASES $ 1,300 NOTE 1
ADDRESSING COSTS OF ENROLMENT INCREASES $ 637
INCREASE FUNDING FOR ABORIGINAL EDUCATION $ 263
INCREASE FUNDING TO STATISTICS CANADA CENTRE FOR EDUCATION STATISTICS $ 10
INCREASE THE NUMBER OF CANADA GRADUATE SCHOLARSHIPS $ 25
SHIFT FUNDING FROM TAX CREDITS AND SAVING SCHEMES TO UPFRONT GRANTS $ 0
TOTAL ANNUAL INVESTMENT $ 2,235
ADDRESSING DEFERRED MAINTENANCE $ 5,000 NOTE 2
CLEAR BACKLOG OF FUNDING FOR ABORIGINAL EDUCATION $ 233
TOTAL ONE-TIME INVESTMENT $ 5,233
NOTE 1 : FUNDING TO REDUCE TUITION FEES ACROSS CANADA TO 1992 LEVELS.
NOTE 2 : FUNDING OF $1 BILLION PER YEAR FOR FIVE YEARS.
22 PUBLIC EDUCATION FOR THE PUBLIC GOOD CANADIAN FEDERATION OF STUDENTSCOSTING OF RECOMMENDATIONS AND FURTHER READING
FOR FURTHER READING...
the facts about post-secondary education
Fall 2009
Local•Section 1281
Canadian Federation of Students
www.cfs-fcee.ca
Strategy for Change:
LOI CANADIENNE
Money Does Matter CANADA POST-SECONDARY SUR L’ENSEIGNEMENT
EDUCATION ACT POSTSECONDAIRE
Post-Secondary Education Tax Credits
Billions in Misdirected “Financial Aid”
the number of months enrolled in post-secondary education
BILL C-X PROJET DE LOI C-X
Background multiplied by $65 for full-time students and $20 for full-time
As defined by the federal government’s Department of students.
Finance, tax expenditures include “exemptions, deductions,
rebates, deferrals and credits” that serve “to advance a wide Scholarship, fellowship and bursary tax credit: all An Act relating to post-secondary education ob- Loi concernant les objectifs de l’enseignement
Public Risk Private Gain range of economic, social, environmental, cultural and other amounts received for post-secondary scholarships, jectives and to cash contributions by Canada postsecondaire et les contributions pécuniaires
public policy objectives”. fellowships and bursaries exempt from tax, where these in respect of post-secondary education under versées par le Canada au titre de l’enseigne-
amounts are received in connection with enrolment in a provincial administration and to amend certain ment postsecondaire de compétence pro-
Since the mid-1990s, federal governments have increasingly program for which the student can claim the education tax
favoured tax expenditures over directly allocated student Acts in consequence thereof. vinciale et modifiant d’autres lois en con-
An introduction to the commercialisation of university research financial assistance. In total,
credit
séquence.
federal tax expenditures for Registered Education Savings
post-secondary students have Plans: Contributions to
Figure 1. Each year, the federal government spends more on
grown from $566 million in education related tax breaks for families earning over $70,000
Registered Education Savings
2009 1996 to more than $2.4 billion than it does on needs based grants. Plans (RESPs) grow tax-free until
in 2009.1 This represents a 431% the time that they are withdrawn,
National Graduate Caucus increase and more than seven Tax Credits Transferred at which point the saved amount As proposed by the Canadian Association Proposé par l’Association canadienne des
Canadian Federation of Students times the amount the federal to High Income Earners is taxable as income for the of University Teachers professeures et professeurs d’université
government’s granting program beneficiary. For more information,
will distribute in student $432M see the Canadian Federation of 2007 2007
financial aid. Students’ factsheet on the RESP
$345M program at www.cfs-fcee.ca.
The collection of tax
expenditures offered by the All of the post-secondary tax
Low- and Middle-Income credits can be used either by the
federal government for post-
Canada Student Grants student or transferred to a family
secondary education fall into
two categories: tax credits for member. Registered Education
expenses that have already been Saving Plans are, in the vast
incurred; and tax deductible savings plans to be used for majority of cases, established by parents for their children’s
An alternative for accessible, high-quality future education costs.
future education costs.
post-secondary education
Education Tax Credit: Students may claim a 16% tax credit
for the accrued “education amount”. The education amount
A Poor Approach to Reducing Student Debt
is equal to the number of months enrolled in post-secondary The non-refundable education and tuition fees tax credits
education multiplied by $400 for full-time students and $120 have been the most widely used and expensive federal tax
for part-time students. measures for post-secondary education. In the 2007 tax
year, the most recent year for which statistics are available,
Tuition Fee Tax Credit: Students may claim a 16% tax
National Office • Bureau national 2,688,240 claims were filed for the education, tuition fee and
credit for tuition fees and ancillary fees paid. In 1987, it
student loan interest credits, costing the federal government
338 rue Somerset Street West / Ouest became possible to transfer this credit to a spouse, parent, or
almost $1.8 billion in foregone tax revenue.2
Ottawa, Ontario grandparent. As of 1997, this credit may be carried forward
Canadian Federation of Students for application in future tax returns. This massive public expenditure, if offered as upfront
K2P 0J9 grants, could have almost eliminated the need for students
Student Loan Interest Tax Credit: Students may claim
(613) 232-7394 October 2007 to borrow. For example, the Canada Student Loans Program
a 16% tax credit for the interest paid in a year during
expects to lend roughly $2.2 billion during the 2009-10
www.cfs-fcee.ca repayment of a Canada Student Loan and provincial
academic year.3 In other words, if the amount of money the
student loan.
federal government spent on education related tax credits
Textbook Tax Credit: Students may claim a 16% tax credit this year had been shifted to the “front-end” in the form
for the assigned “textbook amount”. The amount is equal of grants through the Canada Student Grants Program,
A PRIMER ON THE STRATEGY FOR CHANGE: POST-SECONDARY EDUCATION ACT
COMMERCIALISATION OF AN ALTERNATIVE PROPOSAL FOR FACT SHEET: POST-SECONDARY
CANADIAN ASSOCIATION OF UNIVERSITY
UNIVERSITY RESEARCH STUDENT FINANCIAL ASSISTANCE EDUCATION TAX CREDITS
TEACHERS
www.caut.ca/uploads/pseact-2007.pdf
Local•Section 1281
the facts about post-secondary education
Fall 2009
Canadian Federation of Students
www.cfs-fcee.ca
Student Employment
FUNDING
Introduction Work and Academic Success
Employment is an important source of income for Studies have found that working a significant number of
students. According to Statistics Canada, income from hours (over 20 per week) while in school has a negative
employment held during the current academic year was impact on academic success. Roughly 60% of university
the second most commonly used source of funding after students who worked during the year reported that it had
personal savings. In fact, 63% of students age 20-24 relied a negative impact on their academic performance. One in
on employment to finance their education and over 25% four of these students rated the impact as significant. 9, 10
FOR
cited income from current employment as their most Working during the year also decreases a student’s
important source of funding.1 likelihood of finishing their degree. Statistics Canada’s
Although there are several reasons that students are Youth in Transition study found that, “working at all
increasingly combining work with school, rapidly and working more hours both have a negative effect on
increasing tuition fees are most likely the biggest factor. persistence”.11
POST-
Undergraduate tuition fees in Canada have increased While employment can help a student gain work
almost 300% from an average of $1,706 in 1991-92 to experience and pay for expenses, students who work
$4,917 in 2009-10.2 International students are often over 20 hours a week and rely on employment to pay for
charged tuition fees of up to $15,000 per year, and some the increasing cost of their education find themselves at a
professional students in excess of $25,000. Tuition fees have disadvantage. As tuition fees and other costs continue to
SECONDARY
grown to become the single largest expense for most rise, more and more students are finding little choice but to
post-secondary students. take on more work.
The 2006 College Student Survey (CSS) asked Canadian
college students why they worked. A majority said that Summer Employment
they worked to “pay for necessities” while another 10 In summer 2009 student unemployment rose to over 20%,
percent said they worked to “pay for school or the second highest rate ever recorded. The combination of
EDUCATION
school-related debt”. Today, one in four college and students having less savings from summer work, family’s
university students depend on working to make ends savings and income being diminished as a result of the
meet. economic downturn and students facing higher tuition fees
than ever before has resulted in one-third of college and
Working during studies university students saying they will run out of money by
During the 2008-09 year, 48% of full-time students between the end of the Fall semester.12
the ages of 20 and 24 worked during the school year, More than 4 in 10 students rely on earnings from summer
compared to just 26.6% of their counterparts in 1976.4 employment to pay for their tuition fees and living costs.
Part-time students worked even more, with 91% of those For these students, savings from summer work account for
between the ages of 20-29 being employed during the over one-third of their money for the year.
course of their degree.5 The number of full-time students
working more than 35 hours per week has almost doubled
The Summer Canada Career Placement Program
over the past two decades.6 The Summer Career Placement Program was created
by the federal government in the mid-nineties to help
Full-time students who work do so an average of 15
students find summer employment and get career-
hours per week, while part-time students work more than
building work experience. The Program is a partnership
30 hours per week. Over the course of their degree an between employers and the federal government in which
increasing number of students rely on employment, with the government subsidises private, public and non-profit
over 50% more students working during the last year of employers to hire students over the summer. In 1996, a
their degree than their first.7 study done by the government found that nearly 7 in 10
Female students report working more than their male participating employers would not have hired a student
counterparts. In 2008, female students were 25 % more without the program, which indicates that the program
likely to be employed during the academic year. 8 created summer employment for over 50,000 students.
CA NAD I A N F E D E RAT I O N O F ST U D E N TS
FACT SHEET: FUNDING FOR POST- FACT SHEET: TUITION FEES FACT SHEET: STUDENT THE TUITION FEE TRAP
SECONDARY EDUCATION EMPLOYMENT www.ocufa.on.ca
PUBLICATIONS OF THE CANADIAN FEDERATION OF STUDENTS RELATED PUBLICATIONS
All publications are available for download at www.cfs-fcee.ca
CANADIAN
CANADIANFEDERATION
FEDERATIONOF
OFSTUDENTS
STUDENTS A NATIONAL VISION FOR POST-SECONDARY EDUCATION 23You can also read
