Public Education for the Public Good 2012-EN.indd - CFS-FCEE

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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 full- and part-time students at the college, undergraduate, and graduate levels.
British
Columbia
University of British
Columbia Students’
Union Okanagan
Camosun College
Student Society
Capilano Students’
Union
Douglas Students’ Union
Emily Carr Students’
Union
Kwantlen Student
Association
College of New
Caledonia Students’
Union
North Island Students’
Union
Northwest Community
College Students’ Union
Okanagan College
Students’ Union
College of the Rockies
Students’ Union
Selkirk College Students’
Union
Students’ Union of
Vancouver Community
College
Thompson Rivers
University Students’
Union
Vancouver Island
University Students’
Union
Prairies
Ontario
Alberta College of Art
and Design Students’
Association
Brandon University
Students’ Union
Graduate Students’
Association of the
University of Calgary
First Nations University
of Canada Students’
Association
University of Manitoba
Students’ Union
University of Manitoba
Graduate Students’
Association
University of Regina
Students’ Union
Association étudiante de
l’Université de SaintBoniface
University of
Saskatchewan Students’
Union
University of
Saskatchewan Graduate
Students’ Association
University of Winnipeg
Students’ Association
Algoma University
Students’ Union
Brock University
Graduate Students’
Association
Carleton University
Students’ Association
Carleton University
Graduate Students’
Association
Association étudiante de
la Cité collégiale
Student Association of
George Brown College
Glendon College Student
Union
University of Guelph
Central Student
Association
University of Guelph
Graduate Students’
Association
Lakehead University
Student Union
Laurentian Association
of Mature and Part-time
Students
Laurentian University
Graduate Students’
Association
Laurentian University
Students’ General
Association
Association des
étudiantes et étudiants
francophones de
l’Université Laurentienne
Laurentian Students’
Union
Ontario
(cont’d)
McMaster University
Graduate Students’
Association
Nipissing University
Student Union
Ontario College of Art
and Design Student
Union
Student Federation of
the University of Ottawa
Graduate Students’
Association des
étudiant(e)s diplômé(e)s
de l’Université d’Ottawa
Queen’s University
Society of Graduate and
Professional Students
Ryerson Students’ Union
Continuing Education
Students’ Association of
Ryerson
Saint Paul University
Students’ Association
Thames Students Inc.
University of Toronto at
Scarborough Students’
Union
University of Toronto
Graduate Students’
Union
University of Toronto
Students’ Union
University of Toronto
Mississauga Students’
Union
Association of Part-Time
Undergraduate Students
at the University of
Toronto
Ontario
(cont’d)
Trent Central Student
Association
Society of Graduate
Students of the
University of Western
Ontario
Wilfrid Laurier University
Graduate Students’
Association
University of Windsor
Students’ Alliance
University of Windsor
Graduate Students’
Society
University of Windsor
Organization of Part-time
University Students
York Federation of
Students
York University Graduate
Students’ Association
Québec
Concordia Student Union
Concordia University
Graduate Students
Association
Dawson Student Union
Post-Graduate Students’
Society of McGill
University
Maritimes
Cape Breton University
Students’ Union
Holland College Student
Union
University of King’s
College Students’ Union
Mount Saint Vincent
University Students’
Union
University of New
Brunswick Graduate
Students’ Association
Student Union of
NSCAD University
University of Prince
Edward Island Student
Union
University of Prince
Edward Island Graduate
Student Association
Association générale des
étudiants de l’Université
Sainte-Anne
Newfoundland
and Labrador
Grenfell College Student
Union
Marine Institute Students’
Union
Memorial University of
Newfoundland Students’
Union
Graduate Students’
Union of the Memorial
University of
Newfoundland
College of the North
Atlantic Students’ Union
table of contents
1-5
overview
forward
Public opinion polling
Recommendations
6 - 15
Funding and governance
Post-secondary education in canada
User fees and the income tax system
A post-secondary education act
STUDENT DEBT
Education Statistics
16 - 19
Research and innovation
commercialisation of university research
business investment in research
graduate student funding
20 - 23
demographic Changes
Aboriginal Education
International Students in Canada
24 - 26
Supporting information
Costing of recommendations
References
overview
Public education
for the public good
INVESTING IN POST-SECONDARY EDUCATION IS AN INVESTMENT IN CANADA’S FUTURE
Since the 2008 global economic recession, Canada’s road to
recovery has been smoother than many other industrialised
nations. Around the world, countries are dealing with massive
debt resulting from tax cuts and stimulus spending by
implementing austerity measures. Canada is no exception. Yet
despite Canada’s relative economic stability, many Canadians—
particularly students and youth—continue to struggle with high
unemployment and cuts to social programs.
Although Canada showed signs of recovery following the
recession, this past year has seen rising unemployment,
stagnating trade (except natural resources), and mounting
personal debt—particularly education-related debt—as
those affected by budget cuts and job losses return to school
for retraining. Recent reports from the World Economic
Forum and the Organisation for Economic Co-operation and
Development (OECD) have shown a slip in Canada’s ranking
in higher education. Both organisations note Canada’s lack
of adequate training and development at the post-secondary
level. Jurisdictional redundancies and high student debt drag
down national rankings, which are also impacted by declining
levels of private industry research and innovation. According
to the World Economic Forum, Canada has lost its position in
the top ten most economically competitive nations. It has been
replaced by Denmark, Taiwan, and Iceland—nations that invest
heavily in public, post-secondary education.
Record-high levels of student debt and a post-secondary
education system that is out of reach for an increasing number
of Canadians threaten Canada’s long-term prosperity. Canadian
youth unemployment is double that of the general population.
The baby boomer generation is working longer or re-entering
the workforce after retirement, making it difficult for new
graduates to find jobs. With current federal student debt
at over $15 billion, not including provincial or private debt,
Canadian youth are now the most indebted generation in the
country’s history. This debt will have far-reaching implications
for Canada’s economy and socio-economic equality.
In the absence of national policy on post-secondary education,
provinces have the ability to set tuition fees at whatever level
they see fit. These provincial policies have resulted in students
facing significantly different challenges in accessing higher
education depending on the province they are studying in. This
disparity threatens Canada’s long-term economic stability and
social equality, and also impacts regional development and
economic growth.
Three decades of public funding that has failed to keep up
with enrolment growth has had a notable impact on students’
education experience. Class sizes have increased while repairs
to infrastructure have gone largely unaddressed. Average
tuition fees have increased at three times the rate of inflation in
the last year alone. As the primary lenders of student loans, the
federal government must take decisive action to progressively
reduce student debt. While the current funding model is
unsustainable, there are realistic options within reach.
Investments in students, colleges, and universities are
investments in Canada’s future. Taking advantage of Canada’s
current relative economic strength, compared to other
industrialised countries, requires leadership at the federal level.
This document outlines key recommendations for the federal
government to build and maintain a strong post-secondary
education system that ensures a prosperous, equitable future
for generations to come.
Canadian federation of students a national vision for post-secondary education
1
Canadians support
ACCESSIBLE Public education
A majority of Canadians AGREE that:
• a university or college education is more important than ever to get by in today’s society;
• the federal government should attach conditions to dedicated transfer payments to the provinces;
• the government should invest more in post-secondary education, even if it means they have to pay slightly more in taxes;
• the government should invest in making college and university more affordable, even if it means a small increase in taxes; and
• education is a common good and should be paid for by the government.
Should tuition fees be
increased, frozen, or
reduced?
50%
What is the most important thing for
government to do for college and
university education?
50%
Lower tuition fees and student debt - 52%
40%
Create more spaces for
qualified students - 19%
30%
30%
Reduce class sizes by hiring
more professors - 13%
20%
20%
10%
10%
0%
0%
40%
Reduced - 33%
Frozen - 45%
Increased - 16%
It is more difficult today to
get a university or college
education than it was ten
years ago.
The quality of education
has suffered because of
inadequate government
funding.
Invest more in research - 11%
Public opinion polling results are taken from Harris/Decima random telephone survey of 2,000 adult Canadians conducted between April 14
and April 27, 2011 and a Harris/Decima random telephone survey of 1,000 adult Canadians conducted between May 10 and May 14, 2012. The
polls were commissioned by the Canadian Association of University Teachers and the Canadian Federation of Students. National results are
considered accurate within 3.1 percentage points, 19 times out of 20.
The numbers do not always add up to 100% because they are rounded to the nearest percentage point, and some respondents did not
answer all questions.
Agree - 51%
Agree - 47%
Disagree - 33%
Disagree - 39%
No opinion - 16%
No opinion - 14%
61% of Canadians think
governments are not
doing enough to make
sure that everyone who
is qualified has a chance
to get a DEGREE.
overview
78% of Canadians oppose
increases in tuition fees.
of those 41% support a
reduction from current
levels.
65% of canadians want
the federal government
to set conditions on
transfer payments to
ensure provinces use
the money as intended.
high fees push students to work
more, study less
Students are struggling to pay for their postsecondary education more than any previous
generation. Record-high tuition fees combined
with the recession means that those in vulnerable
groups, including Aboriginal and other racialised
students and those with disabilities, are facing
increasing barriers to post-secondary education.
Higher costs and fewer summer employment
opportunities have contributed to an increasing
number of students working during the academic
year.
Students have reported that working in low-wage,
low-skilled jobs while studying often has a negative
impact on students’ academic performance
and the quality of their educational experience,
particularly when one is working more than 20
hours per week.
working Has a
negative effect on
academics
Student
unemployment
remains high
FAR more students
today work during
the school year
25%
75%
50%
20%
60%
40%
15%
45%
30%
10%
30%
20%
5%
15%
10%
0%
2008
2009
2010
2011
Percent of students who were
unemployed during the summer
0%
Yes
No
Students who were asked if they
thought working had a negative
effect on academic performance
0%
1976
2008
Percent of students who worked
during the year while attending
university
Canadian federation of students a national vision for post-secondary education
3
Taking advantage of Canada’s
current relative economic
strength, compared to other
industrialised countries, requires
leadership at the federal level
and an investment in students,
as well as in colleges and
universities. This document
outlines EIGHT recommendations
for the federal government to
build and maintain a strong
post-secondary system that
trains a workforce capable of
competing in today’s economy.
for a prosperous and productive future for all Canadians
1
2
3
4
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:
- address shortfalls in funding since 1992;
- reduce tuition fees to 1992 levels; and
- eliminate deferred maintenance at Canada’s
universities and colleges.
5
6
Cut student loan debt in half by 2015. In order
to address rising student loan debt, the federal
government must, in consultation with the provinces,
implement an accelerated debt reduction program
that sets benchmarks and includes both up-front and
post-graduation measures to reduce student debt.
7
Increase the value and number of non-repayable
grants available to students by redirecting funds
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.
8
Increase funding by $10 million to Statistics Canada’s
branch for the collection and analysis of postsecondary education statistics in order to properly
track the impact of a reduction in student debt on
post-secondary education completion rates and the
fulfillment of labour-market demands, as well as to
provide accountability for the funds allocated to
reducing debt.
overview
Recommendations
Remove targeted research funding earmarks within the
granting councils and award research funding based
on academic merit determined through a peer-review
process.
Increase the number of Canada Graduate Scholarships
to be consistent with average program growth and
distributed proportionally among the research councils
according to enrolment figures.
Remove the funding cap on increases to the PostSecondary Student Support Program and ensure that
every eligible First Nations and Inuit learner is
provided with adequate funding to attend postsecondary education.
Act to safeguard and strengthen Canada’s reputation as
country of choice for international students by:
- regulating the fees charged to international students;
- prohibiting private institutions from hosting
international students; and
- combining the Off-Campus Work Permit and
Post-Graduation Work Permit into the Study
Permit (Student Visa).
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
government has recognised the crucial
role post-secondary education plays in
driving economic growth, innovation,
and in increasing social and economic
equality. The substantial public
investments that led to the expansion of
universities and the creation of colleges
in the 1960s were based on the belief
that access to post-secondary education
should be dictated by ability and desire,
not financial means.
Canada’s public post-secondary
education system has become markedly
less public over the past three decades.
Beginning in the 1980s, the federal
government limited the increases in
transfers to the provinces for postsecondary education, effectively
decreasing per-student funding. In 1995,
the federal government made one of
the deepest funding cuts in history by
slashing transfers to the provinces for
social programs by $7 billion. In every
province, with the exception of Québec,
this funding cut was passed on directly
to students in the form of massive
tuition fee increases.
Despite the federal government posting
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 paved the
way for a shift towards private funding
as the main source of revenue for
Canada’s universities and colleges.
Today, post-secondary institutions rely
largely on private sources of funding,
primarily through tuition and ancillary
fees, to cover operating costs.
Nearly half of the operational funding
for universities today comes from
students themselves (Figure 1.2), with
institutions like the University of Toronto
receiving more from students than from
the government.
Canadians overwhelmingly believe that
the federal government must provide
more support to post-secondary
education. While Canada’s social
programs are often targeted for budget
cuts, funding such programs is necessary
for Canada to maintain its standard of
living.
Current funding priorities, including a
fiscal capacity that has been reduced by
multi-billion dollar tax cuts, undermine
the federal government’s ability to
adequately fund training for the country’s
future workforce and retraining out-ofwork Canadians.
Prior to these cuts, access to postsecondary education was similar from
province to province. Today, tuition fees
vary widely and provincial residence
is now a major factor in determining
the individual cost of post-secondary
education.
In order to both reduce inequalities
across socioeconomic groups and
regional disparities and to increase the
country’s economic competitiveness
internationally, the federal government
must once again make affordable, high
quality post-secondary education a high
priority.
60% of Canadians
agree that investing in
social programs and
reducing poverty and
unemployment are
higher priorities than
tax cuts and deficit
reduction.
15
th
2011
2010
th
2012
“the data suggest a slight downward trend of [Canada’s] performance in higher
education... driven by lower university enrollment rates and a decline in the
extent to which staff is being trained at the workplace.”
-World Economic Forum Report on Economic Competetiveness
figure 1.1 2012-13 World economic forum: global competitiveneSS
index, higher education rankingS (effectiveneSS of the higher
education Sector in developing an economically competitive
Society)
6.20
6.10
6.00
5.90
5.80
5.70
5.60
south koreA
uNiteD kiNgDom
cANADA
DeNmArk
iceLAND
NorwAy
AustrALiA
New zeALAND
tAiwAN
uNiteD stAtes
sweDeN
NetherLANDs
germANy
5.40
beLgium
5.50
switzerLAND
ANNUALCOSTTOTHE
GOVERNMENTOFPLANNED
CORPORATETAXCUTSBY2013.
12
siNgApore
$13.7
billion
8
th
FiNLAND
Providing adequate funding for postsecondary education is well within the
government’s reach and will do far more
to guarantee Canada’s future economic
success than tax cuts or credits.
Canada was ranked:
score out of 7.00
investments in social programs, such
as health care and post-secondary
education, regularly rank as top
priorities for Canadians. in a recent
poll conducted by harris-decima, only
8 percent of Canadians identified tax
cuts, and only 12 percent identified
deficit reduction, as the most important
priority for the federal government. by
comparison, over 60 per cent identified
investments in social programs, reducing
unemployment, or reducing poverty as
their top priority. despite public opinion,
the federal government has prioritised
tax cuts and deficit reduction over
needed investments in Canada’s social
programs.
according to the World economic Forum’s annual report on economic
competitiveness, Canada’s higher education system is failing to keep pace with
other nations in equiping citizens with the skills needed to advance the domestic
economy and remain globally competitive.
FuNDiNG aND GoVErNaNCE
iS canada’S higher education SyStem
economically competitive?
Canadian federation of students a national vision for post-seCondary eduCation
7
Figure 1.2 University Operating
Revenue divided between private
funding and government funding
Tuition and other fees
Government funding
100%
80%
60%
40%
20%
0%
1982
1992
2002
2012
Tuition fees
Public transportation
Food
Rent
50%
40%
30%
20%
10%
2012
2011
2010
2009
2008
2007
2006
2005
2004
2003
2002
0%
Figure 1.3 tuition fees increase faster
than all other student costs
Fees are a barrier: Let the
income tax system work
Since the federal funding cuts of the 1990s,
an increasing proportion of the cost of postsecondary education has been passed on to
students. Although government grants used
to cover up to 80 percent of an institution’s
operating budget nearly 30 years ago, they
now cover roughly 50 percent, with tuition fees
making up the difference (Figure 1.2).
In the last fifteen years, tuition fees have
become one of the largest expenses for
university and college students, increasing, on
average, over five times the rate of inflation
(Figure 1.4). High tuition fees limit access
to post-secondary education for students
from low- and middle-income backgrounds.
At their current rate of increase, tuition fees
are estimated to exceed all other student
expenses combined in five years.
Statistics Canada has determined that students
from low-income families are less than half as
likely as those from high-income households to
pursue a university education.
Statistics Canada has also found that the
most frequently-reported reason high school
students did not pursue post-secondary
education was financial.
Tuition fees act as a flat tax—a cost applied
to all students at the same rate, regardless of
their financial resources. While some argue
that post-secondary education will significantly
increase a student’s long-term earning
potential by up to $1 million, thus justifying
tuition fee increases, the reality is very different.
The Organisation for Economic Co-operation
and Development (OECD) reports that male
graduates earn only an additional $80,000 over
their lifetime. The return is substantially lower
for female graduates who, on average, earn
only an additional $46,000.
Given that at least 70 percent of new jobs
require some form of post-secondary
education, higher education is increasingly
becoming a prerequisite for participating in
the labour market and for earning an average
income. It is not a guarantee of future wealth.
The fairest method of financing postsecondary education is through a progressive
income tax system.
Such a system ensures that the wealthy and
poor are taxed in a fair manner by reflecting
their respective ability to contribute and
the subsequent personal economic benefit
obtained as a result of their education.
Canadians have made it clear that they are
comfortable with increased government
spending to improve access to education.
According to a recent Harris/Decima public
opinion poll, Canadians rank tuition fee
reductions as the top priority for government
investment in education.
The same poll also found that 67 percent of
Canadians want the federal government to
exercise more control over transfers to the
provinces for post-secondary education.
Figure 1.4 tuition fees grow
Dramatically faster than inflation
Tuition fees
Inflation
50%
40%
30%
20%
10%
2011
2010
2009
2008
2007
2006
2005
2004
2003
0%
2002
does little to address existing renovation and
maintenance needs.
University and college budgets are strained
to such an extent that deferred maintenance
poses serious health and safety risks at many
schools across the country. In 2009, the
Canadian Association of University Business
Officers estimated that the total value of
deferred maintenance on Canadian campuses
was more than $5 billion, half of which is
considered urgent, a 35 percent increase in less
than a decade.
Despite the moderate reinvestment in postsecondary education in recent years, the
federal government has done little to ensure
that these investments will have their desired
impact.
2001
The benefits of investing in higher education
go well beyond the individual. A highly
educated workforce increases the tax base and
reduces the cost of a number of other publiclyfunded social programs, including health care,
public safety, and employment insurance.
A recent report by the OECD found that
the direct public benefit of investing in postsecondary education was in excess of $100,000
per individual, a 160 percent return on each
dollar invested.
Since the cuts to federal transfer payments
in the 1990s, the quality of post-secondary
education has declined. Class sizes have
increased substantially, while at the same
time institutions have pushed to casualise the
academic workforce by replacing full-time
tenured faculty members with overworked and
inadequately compensated contract academic
staff. In addition, between 1990 and 2006, the
ratio of students to full-time faculty members
increased by almost 40 percent.
Cash transfer payments for post-secondary
education are roughly $1.3 billion short of
1992 levels when accounting for inflation and
population growth.
The 2009 federal budget allocated $2 billion
to college and university infrastructure,
focused entirely on new building projects.
While new infrastructure is welcome, it only
increases the funds needed to maintain and
renovate infrastructure on campuses, a cost
that is already over $1 billion per year, and
Funding and governance
SUSTAINABLE INVESTMENT
NEEDS National Leadership
64%of Canadians
Believe that the cost
of a post-secondary
education is too high.
Canadian federation of students a national vision for post-secondary education
9
a post-secondary education act
Accountability for Federal
Funding Needed
Although the federal government is one
of the single largest sources of funding
for post-secondary education, there is
no mechanism to ensure that the monies
transferred to provincial governments
actually make it into the post-secondary
education system.
The lack of accountability to ensure that
federal funds for social programs are used
as intended has resulted in provincial
governments being free to misallocate
federal transfers intended for postsecondary education.
Under previous federal-provincial costsharing models, the provinces had to invest
their own funds in order to receive federal
monies. If a provincial government chose to
cut funding, federal transfers were reduced
by a proportionate amount. The current
block-funding model—the Canada Social
Transfer—has no requirement that provincial
governments maintain their funding in order
to receive federal money.
Indeed, there have been numerous
examples of provincial governments
receiving additional federal funds and then
reducing their provincial contribution. For
example, in 2008, the Government of British
Columbia cut funding to universities in
the same year that it received new postsecondary education funding from the
federal government. Because of variations
in provincial funding and policies, tuition
fees differ greatly from province to province
(Figure 1.5).
Federal Cash Transfers for
Post-Secondary Education
To return to a level of federal funding
equivalent to the level before the cuts of
the mid-nineties would mean a dedicated
post-secondary education transfer to the
provinces of approximately $4.9 billion.
The federal government currently allocates
just over $3.5 billion as part of the Social
Transfer; however, there is no requirement
for the provinces to spend this money
on increasing access to post-secondary
education. Since the funding cuts in
the early 1990s, full-time enrolment has
increased 24.85 percent, resulting in an
increase of $637 million in costs to the
system that are yet to be addressed by the
federal government.
Additionally, similar to the health care
system, university and college-related costs
increase at a much higher rate than the
standard Consumer Price Index. Over the
previous eighteen years there has been,
on average, an annual post-secondary
education-related inflation of three percent,
per year, or about $1.7 billion over that
period.
When compared to current federal
funding levels, there is a funding gap of
approximately $2.3 billion.
A Federal Post-Secondary
Education Act
The adoption of a federal post-secondary
education act would establish conditions
on the provinces for receiving postsecondary education transfer payments.
Such legislation would require provinces
to uphold principles similar to those
found in the Canada Health Act: public
administration, comprehensiveness,
universality, portability, and accessibility.
In return for upholding these principles,
provincial governments would receive
adequate and predictable funding from the
federal government.
Recommendation 1
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:
- address shortfalls in funding since
1992;
- reduce tuition fees to 1992 levels;
and
- eliminate deferred maintenance at
Canada’s colleges and universities.
$2,649
nl
$3,729
mb
$2,774
qc
$6,017
Sk
$7,180
on
$5,470
pei
$5,917
$5,934
nb
nS
FuNDiNG aND GoVErNaNCE
$5,883
ab
$5,015
bc
Figure 1.5 map oF TuiTion FeeS aCroSS Canada
Average domestic undergraduate arts and science tuition fees
in 2012-13.
Figure 1.6 TuiTion Fee levelS, 1992 To 2015, in CurrenT dollarS
10,000
1992
2012
2015
$9,231
9,000
8,000
$7,649
$7,180
7,000
6,000
5,000
$6,815
$5,637
$5,883
$6,741
$6,017
$5,917
$5,470
$4,064
$3,729
$3,160
$2,774
3,000
$1,982
$1,551
$1,591
$1,671
$2,105
$2,743
$2,016
$2,120
$2,147
BC
AB
SK
MB
ON
QC
$2,649
$1,422
$1,115
1,000
0
$6,743
$5,934
$5,015
4,000
2,000
$6,449
NB
PEI
NS
NL
Note: tuition fees for 2015 based on provincial government policy announcements, and current legislation.
Canadian federation of students a national vision for post-seCondary eduCation
11
“Student debt loads have never been
higher... People ARE graduating with
$30,000 in student loans on top of $5,000
in credit card debt... The result is THAT
many students fall into a hole they can’t
easily climb out of.”
Laurie Campbell,
Executive Director, Credit Canada
FIGURE 1.7 Incidence and average amount of
government student Loan debt UPON graduation
26,000
Inflation
24,000
22,000
(in dollars $)
20,000
18,000
16,000
14,000
12,000
10,000
8,000
6,000
1990
1995
2000
2005
2010
147,000
Number of Canadians unable
to make any payments on
their canada student loan
a generation
in debt
Canadians are making sacrifices to prepare themselves for an
evolving workforce. 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 largely stagnated in the past twenty years.
Skyrocketing tuition fees and the prevalence of loan-based financial
assistance have pushed student debt to historic levels. This past
year, almost 425,000 students were forced to borrow in order to
finance their education. The aggregate of loans disbursed by
the Canada Student Loans Program, less the aggregate of loan
repayments received, is increasing by nearly $1 million per day.
In September 2010, the total amount of student loans owed to the
government reached $15 billion, the legislated ceiling set by the
Canada Student Financial Assistance Act. This figure only accounts
for a portion of total student debt; it does not include provincial
and personal loans, lines of credit, and education-related credit
card debt. In response, the government altered the definition of
“student loan” to exclude over $1.5 billion in federal student loan
debt. Even with this new definition, the federal student loan debt
surpassed the $15 billion limit. In response, the federal government
again amended the Canada Student Financial Assistance Act in
order to increase the limit to $19 billion while, at the same time,
dramatically reducing parliamentary oversight of the program.
Recommendation 2
Cut student loan debt in half by 2015. In order
to address rising student loan debt, the federal
government must, in consultation with the provinces,
implement an accelerated debt reduction program that
sets benchmarks and includes both up-front and postgraduation measures to reduce student debt.
Many potential students are reluctant
to take on the required debt and
associated risk required to pay for a
college or university degree. Research
has found that debt aversion is
strong among those who chose not
to pursue post-secondary education.
Of the 70 percent, of high school
graduates who cite financial reasons
as the main factor for not pursuing
post-secondary education, one in
four cited accumulation of debt
as the main deterrent. Those from
marginalised communities, low-income
backgrounds, and single parents are
more likely to be strongly averse to
accumulating student debt.
Students are also finding it more
difficult to find meaningful summer
employment to help cover the costs
of rising tuition fees. According
to Statistics Canada, student
unemployment is almost twice as high
as the rate of unemployment for the
general population.
Research finds that debt levels have a
direct impact on success and retention.
Students with higher debt levels are far
less likely to complete their degree or
diploma.
After graduation, student debt distorts
career choice, especially among
professionals, which in turn undermines
access to health care and legal aid.
Studies of medical and law students
found that debt levels prompt these
students to seek higher paying jobs in
fields or regions that are not necessarily
their first choice or where demand is
greatest. Student debt appears to be
driving committed young doctors away
from family practice and young lawyers
away from public and community
service work.
High levels of debt also discourage
individuals from starting families,
working in the public service,
purchasing a home, and pursuing low
paying or volunteer experience in a
career-related field of study that may
be necessary to get the experience
needed to get a middle-income job.
according to the canada student
loans program :
Average tuition fees per year for
the 2013 kindergarten class when
they reach university in 2026:
2026-27:
2027-28:
2028-29:
2029-30: $13,100
$13,700
$14,400
$15,100
Funding and governance
The impact of debt on
students and society
Tuition fee estimates based on provincial
government policy announcements, and current
legislation, indexed to 2.5% above inflation.
“[High levels of] Student
debt are one of the
primary effects of
the move towards
policy that downloads
the costs of public
education onto students
and their families.”
Alternative Federal Budget
Canadian Centre for Policy Alternatives
Canadian federation of students a national vision for post-secondary education
13
effective measures:
grants not loans
Approximate cost of
education tax credits
and savings schemes
for 2011:
$
2.52
billion
Amount that the
Canada Student Loans
Program expects to
lend for the 2012-13
year:
$
2.33
billion
While creating the Canada Student Grants
Program was an important first step to
meaningfully reducing student debt, a larger
investment 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 indications
are, however, that the total cost of the
programs will exceed $2.5 billion this year,
making them by far the government’s most
expensive direct spending measure.
Despite their large price tag, the education
tax credit and savings programs are very
poor instruments to improve access to
post-secondary education and relieve
student debt. All students qualify for tax
credits, regardless of financial need, which
ultimately benefits those with the lowest
amount of debt and those from high-income
backgrounds. Savings schemes have
largely benefitted those from high-income
backgrounds, as individuals from lowincome families often do not have the funds
necessary to invest in the first place.
If this $2.5 billion was instead used for
up-front grants, it would turn every dollar
loaned by the Canada Student Loans
Program (CSLP) into a non-repayable grant.
The CSLP expects to lend approximately
$2.3 billion during the 2012-13 academic
year. If the amount of money the federal
government spent on savings schemes and
education-related tax credits each year had
been simply shifted to the Canada Student
Grants Program, student debt owed to
the federal government could be greatly
reduced.
Recommendation 3
Increase the value and number of nonrepayable grants available to students
by redirecting funds 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.
“[Canada Education
Savings Grants] give
scarce public funds to the
wrong households... the
CESG program should be
discontinued.”
Kevin Milligan
UBC Economist
Collectively, the federal and provincial governments spend billions
of dollars each year on post-secondary education, but adequate
data to fully analyse the effectiveness of that spending are not
collected. A 2006 report by the OECD noted that Canada could not
provide data on 57 of the 96 post-secondary education indicators
used to compare countries. Although the Council of Ministers of
Education has started to fund the collection of some of the missing
data, it is not a 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
education system, nor are data collected on completion rates for
higher education or the average length that a student spends in
the post-secondary system. In a more general sense, Canada lacks
much of the data regarding both the inputs and outcomes of the
post-secondary education system.
In May 2010, the Department of Human Resources and Skills
Development Canada announced that it would cease funding the
Youth in Transition Survey (YITS) and the National Longitudinal
Survey on Children and Youth. These studies are primary sources
of information on who pursues post-secondary education and
who does not. Among other things, they provide vital information
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 postsecondary 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
will also make it extremely difficult to conduct further research
regarding the post-secondary education system.
While the impact of discontinuing this research is significant, the
amount of funding necessary to properly conduct research on
students and the post-secondary system is relatively small. An
increase of $10 million, less than 0.3 percent of what the federal
government spends on post-secondary education, would establish
the resources needed to undertake this research.
Funding and governance
Tracking success:
education statistics
Recommendation 4
Increase funding by $10 million to Statistics Canada’s
branch for the collection and analysis of postsecondary education statistics in order to properly
track the impact of a reduction in student debt on
post-secondary education completion rates and the
fulfillment of labour-market demands, as well as to
provide accountability for the funds allocated to
reducing debt.
Canadian federation of students a national vision for post-secondary education
15
iS canada’S drive to commercialiSe
univerSity reSearch paying off?
0.25
The Centres of excellence for
Commercialization research
(CeCr)—the network established
by the federal government to bring
together industry and acedemia—
has reviewed 500 publicly funded
projects over the last ten years. of
these, only 80 were identified for
commercial viability and, of those,
only 40 moved forward.
figure 2.1 indirect government Support
for reSearch and development
through buSineSS tax incentiveS
(percentage of gDp)
0.20
500
450
This means that 460 commerciallydriven research programs, funded
with public funds, failed to
produce commercially viable
results.
0.15
0.10
0.05
3.5
figure 2.2 buSineSS expenditureS
on reSearch and development
3.0
(as a share of gdP)
2.5
2.0
1.5
1.0
0.5
itALy
NetherLANDs
NorwAy
cANADA
uNiteD kiNgDom
ireLAND
beLgium
FrANce
AustrALiA
germANy
AustriA
DeNmArk
uNiteD stAtes
switzerLAND
sweDeN
JApAN
0
FiNLAND
spAiN
NorwAy
Note: Finland, sweden, switzerland, Denmark, germany, and italy
provide no tax incentives for research and development to businesses.
100
czech repubLic
150
uNiteD kiNgDom
turkey
DeNmArk
portugAL
FrANce
ireLAND
AustriA
NetherLANDs
200
huNgAry
250
JApAN
300
beLgium
0.00
cANADA
350
south koreA
400
in order for Canada to remain economically
competitive at a global level, it must secure
its status as a centre for research and
innovation. investment in graduate studies
provides the foundation for long-term
innovation and trains the highly skilled
workers and researchers needed to respond
to the economic and social challenges that
Canada faces now and in the future.
enrolment in graduate studies increased by
41.5 percent between 1998 and 2008 (Figure
2.4). however, there have been only modest
funding increases to the federal research
granting councils and scholarships. The
stagnation in federal funding for research
and graduate education limits the number of
masters and doctoral students that receive
grants, thus limiting the pool of highly skilled
researchers to those who are able to afford it
personally or who are able to secure limited
institutional or industry funding.
despite the relatively high number of
university graduates, Canada ranks last
among peer countries for Phd graduation
rates (Figure 2.5), notwithstanding a dramatic
expansion of graduate studies over the last
ten years.
recent federal budgets have directed
research funding to meet the shortterm priorities of the private sector, thus
undermining primary research and long-term
innovation. The drive to commercialise
university research has far-reaching
consequences—from limiting academic
freedom and public ownership of research, to
discouraging private market innovation.
Commercialisation of university research
undermines the broader public interest
research aims of the country. it discourages
private sector investment in its own research
and development facilities, which leads
to fewer employment opportunities for
graduates in an already difficult job market.
The result of this restructuring is that many
highly skilled workers are often unable
to contribute their full potential, thus
undermining Canada’s global economic
competitiveness.
CoMMerCialisation of researCH
The drive to commercialise university
research has a number of negative
consequences. as jobs in government
research facilities are becoming increasingly
scarce, universities are replacing tenure-track
professors with contract academic staff
making it even more difficult for graduates to
find employment in their field.
replacing the public interest with commercial
interests as the driving motivator for
university research undermines the broader
research aims of the country. Federal funding
geared towards market-driven research
programs has resulted in the private sector
increasingly relying on public universities
for research and development. This
dependence contributes directly to Canada
lagging behind comparable countries in
private sector investment in research and
development (Figure 2.2) and the products
those labs produce.
Canada has consistently ranked low on
indices that measure innovation. The World
economic Forum’s annual competitiveness
report highlighted the need for Canada to
increase the sophistication and innovative
nature of private sector research and
development. This year, Canada slipped
from ninth to eleventh place for the quality of
scientific research institutions.
rEsEarCh aND iNNoVatioN
SupporTing reSearCh and innovaTion,
and inveSTing in CanadianS
Perhaps most concerning is that Canada
ranked 24th and 25th on capacity for
innovation and company spending on
research and development, respectively.
overall, Canada ranked eleventh for
innovation in the report, behind the united
States, Japan, germany, Sweden, and
Switzerland, among others.
as this trend continues, private sector
research and development infrastructure
is being replaced with a publicly-backed
university system that is forced to advance
private sector research, a collaboration that
does not have a consistent track-record
of successfully bringing innovations to the
marketplace.
Since the late 1990s, a number of initiatives
have been undertaken to bend public
university infrastructure to meet the
government’s commercialisation objectives,
such as requiring publicly-funded research to
secure direct, private sector investment.
Canadian federation of students a national vision for post-seCondary eduCation
17
university research geared towards
commercialisation is focused on generating
products that may yield short-term results,
with little consideration of long-term
research and innovation goals. as research
funding is increasingly directed in this way,
basic research and academic pursuits are
undermined.
recent increases in funding for the federal
research granting councils, especially those
resources dedicated to graduate students,
have disproportionately benefited applied
research programs that are designed to
pursue a commercialised research agenda
over basic, curiosity-driven research.
The encroachment of the private sector into
universities undermines the independence
of the academy, as money for research is
increasingly tied to entities outside the
academic system. These corporations
often influence decisions that are normally
left to the research community, such as
investment in maintenance, research
facilities, and new infrastructure. The research
community can also come under pressure
from private funders of research when
outcomes are not commercially favourable
for those funders. despite the threat to the
independence of university research resulting
from an increased reliance upon industry
sponsorship, there is currently no whistleblower protection for graduate students who
wish to report research misconduct.
reCommendaTion 5
Remove targeted research funding
earmarks within the granting councils
and award research funding based on
academic merit determined through a
peer review process.
barriers to aCCess
graduate students often face a variety of
challenges in pursuing their studies, including
limited funding options, an increasingly
commercialised and restrictive research
environment, rising tuition fees, little access
to need-based grants, and high levels of
student debt from previous degrees. last
year, average tuition fees for graduate
students increased by 3.7 percent, to over
$5,600 (Figure 2.3).
The financial burden of high fees for
graduate students is exacerbated by the
foregone earnings from not being employed
full-time, along with substantial debts
accumulated from earlier degrees. despite
their significant investment of time and
money, a recent study indicated that doctoral
graduates earn little more–and in some
instances less–than those with only a master’s
degree.
Graduate student fundinG
although funding for the granting councils
has increased slightly in recent years, it has
never fully recovered from the cuts of the
1990s. While funding has not kept pace with
rising graduate student enrolment, the 2012
federal budget failed to invest new money
in the granting councils for curiosity-driven
research.
Funding for curiosity-driven grants in the
social sciences and humanities lags far
behind the applied sciences. Without
proper levels of funding and support for
graduate students, Canada’s research and
innovation capacity will continue to fall
behind global competitors. an investment in
graduate students will help to produce the
highly skilled workers that Canada needs to
compete in the global economy.
Students often enter graduate programs with
substantial debt from their previous degree.
however, there are currently no need-based
grants available to graduate students from
the federal government. Students from lowincome families have a harder time affording
graduate studies due to high tuition fees and
the lack of financial assistance. in the absence
of a grants program, completion rates for
graduate degrees remain low.
Canada graduate Scholarships (CgS)
provide merit-based funding directly to
graduate students. These scholarships are
administered through the granting councils
and are one of the main mechanisms for
the federal government to fund graduate
studies. The limited number of scholarships
available has meant that many of the best
and brightest researchers are unable to
maximise their potential. increasing the
number of CgSs would help promote
graduate research and ensure that graduate
students have the resources to focus on their
research, which will pay long-term dividends
to Canada’s research capacity and innovation.
reCommendaTion 6
Increase the number of Canada
Graduate Scholarships to be
consistent with average program
growth and also to be distributed
proportionally among the research
granting councils according to
enrolment figures.
FiNLAND
$1,000
800
$2,000
700
switzerLAND
600
$3,000
500
sweDeN
400
$4,000
200
0
iNFLAtioN
300
ActuAL tuitioN Fees
$5,000
100
figure 2.3 graduate tuition feeS
compared to inflation
$6,000
germANy
2011
2009
2007
2005
2003
2001
1999
1997
1995
1993
1991
$0
uNiteD kiNgDom
rEsEarCh aND iNNoVatioN
figure 2.5 phd graduateS
(number of Phd graduates per 100,000 people,
aged 25-29)
AustriA
AustrALiA
NorwAy
NetherLANDs
ireLAND
figure 2.4 graduate Student enrolment in canada
150,000
DeNmArk
140,000
itALy
130,000
120,000
uNiteD stAtes
110,000
beLgium
100,000
FrANce
90,000
JApAN
80,000
cANADA
2010
2009
2008
2007
2006
2005
2004
2003
2002
2001
2000
1999
1998
0
Canadian federation of students a national vision for post-seCondary eduCation
19
Keeping the promise of aboriginal
education AND PROSPERITY
As with most OECD members, Canada’s future
depends on its ability to replace its aging
workforce to meet its economic goals. However,
Canada has an advantage over many countries
with its rapidly growing Aboriginal population.
Investments in post-secondary education should
provide essential improvements to the well
being of Aboriginal peoples and communities.
Canada’s Aboriginal population is growing at six
times the rate of the non-Aboriginal population.
According to the 2006 census, over one million
people, roughly four percent of Canada’s
population, identified as Aboriginal.
Of these, 48 percent were under the age of 24
(Figure 3.1). It is estimated that over 300,000
Aboriginal youth could enter the labour force in
the next 15 years alone. In May 2009, the Centre
for the Study of Living Standards concluded
that closing the education gap would lead to
an additional $179 billion in direct GDP growth,
and over $400 billion in total growth over the
next 20 years.
The right to education for Aboriginal peoples
comes from a series of treaties signed over the
course of several decades and recognised in
Canada’s Constitution.
However, despite the clear economic and moral
necessity to ensure access to education for
Aboriginal peoples, funding for their education
has remained stagnant for over a decade. The
participation rates in post-secondary education
can be attributed to the significant and complex
barriers to access that Aboriginal students face.
Research has found that Aboriginal learners are
much more likely to be debt-averse and more
reluctant to use loan-based programs if they are
in financial need. Aboriginal students are also
more likely to enter post-secondary education
at a later age given the higher likelihood they
will have dependents. This leads to higher costs
such as childcare and relocation.
Additionally, approximately 20 percent of
the First Nations population is unemployed,
including a staggering 41 percent of those in
the 15-24 year age group. Unemployment limits
financial resources for families to pay for the
rising costs of college or university.
Currently, the federal government provides
financial assistance to status First Nations and
Inuit students through the Post-Secondary
Student Support Program (PSSSP), which was
created to facilitate access to post-secondary
education and also to alleviate the financial
barriers faced by Aboriginal students by
covering the costs of tuition fees, books,
supplies, travel, and living expenses.
In 1968, Aboriginal Affairs and Northern
Development Canada (AANDC), formerly the
Department of Indian and Northern Affairs
Canada, began providing direct funding for First
Nations and Inuit students to pursue postsecondary education. In 1977-78, only 3,600
students received funding; by 1999-2000, over
27,000 students were federal funding recipients.
Nevertheless, educational attainment levels of
Aboriginal peoples remained significantly lower
than the overall population (Figure 3.1).
Before 1992, funding was determined by the
number of eligible students and their expenses.
Between 1992 and 1997, the model shifted from
per-student funding to block funding, to be
administered by local Band Councils.
In 1996, increases in funding to the PSSSP were
capped at two percent annually—a threshold
that has not been reached in several years. As
a result of this limit on increases, funding has
been unable to keep pace with increasing living
costs, inflation, and tuition fees, which averaged
four percent this year.
Approximately 27,000 Aboriginal students
received financial assistance prior to the
implementation of the funding cap. By 2006,
the number had fallen to just over 22,000. The
lack of funding has meant that communities
administering the funds must make difficult
decisions about who receives funding each
year. Between 2006 and 2011, over 18,500
people were denied funding—roughly half of
those who qualified. Because of the shortfall in
funding, priority is often given to shorter college
programs—to the detriment of those interested
in pursuing more expensive professional or
graduate programs of study.
According to the Assembly of First Nations, a
total of $569 million is required to ensure that no
Aboriginal student is denied access to postsecondary education due to financial barriers,
and that those students who are funded receive
an adequate level of support. As AANDC
currently provides $306 million, an additional
$263 million would be required. This funding
16%
The funding disbursed through the PSSSP has a proven track
record for those who can access it. most aboriginal students
who are able to receive funding through the PSSSP succeed
in completing their studies and go on to find meaningful
work. regardless of their place of residence, the majority of
aboriginal graduates return to work in their communities
and are employed in their field of study, achieving economic
self-reliance and helping to develop healthy and stable
communities while improving the Canadian economy.
in addition to funding restrictions currently impacting
aboriginal learners, there is no federal funding support
provided for non-status First nations and métis students.
15%
17%
37%
29%
29%
5%
42%
figure 3.2 proportion of the
population With a univerSity degree
AborigiNAL
NoN-AborigiNAL
20
(percent %)
Remove the funding cap on increases to the
Post-Secondary Student Support Program and
ensure that every eligible First Nations, Inuit, and
Métis learner is provided with adequate funding to
attend post-secondary education.
25%
21%
9%
25
reCommendaTion 7
10%
10%
would support a total of approximately 40,000 students across
Canada.
DEmoGraPhiC ChaNGEs
figure 3.1 aborginal population groWth
by province betWeen 2001 and 2006
15
10
5
0
1981
1991
1996
the potential gdp contribution
of aboriginal canadians over the
next twenty years if aboriginal
education levels rose to match
those of the general population.
the cost per year to raise
aboriginal education
levels to match those of
the general population.
2001
2006
400
$
billion
253 million
$
21
GDP Contribution of
International Students
to the Canadian Economy
in 2011.
$$$$$$$$
8
billion
$
Annual Contribution of
International Students
to GDP if naturalised
to fill labour market
vacancies.
$$$$$$$$
$$$$$$$$
$$$$$$$$
$$$$$$$$
$$$$$$$$
40
billion
$
INTERNATIONAL STUDENTS
in canada
The Federal government anticipates
significant shortages in the labour market
over the next 15 years. Specifically, It is
estimated that there will be more than
two million job openings over the next
decade. This is largely a consequence of
the retirement of aging baby boomers
and fewer young Canadians entering
the labour market because of declining
domestic birth rates.
Canada could benefit from a robust
international student program from
which it could draw skilled workers. By
increasing the number of international
students who make Canada their
permanent home, the expected shortage
of skilled workers could be significantly
eased. A greater number of international
students making the transition to the
domestic workforce, particularly in key
sectors and regions, will help meet
coming skills shortages and also ensures
that the Canadian economy will continue
to grow.
Education stakeholders agree that there
is untapped potential for attracting
international undergraduate students,
but that the market is very competitive.
International students comprise about
6.5 percent of all students in Canadian
post-secondary education—lower than
the OECD average.
The number of international students
worldwide currently tops 3.3 million.
By 2025, that number is expected to
grow to 7.2 million. There will be strong
competition for these students, as other
leading jurisdictions are equally aware of
the benefits of international education
and are pursuing their own strategies to
attract larger shares of students.
While all students in Canada have faced
dramatic fee increases over the last
decade, tuition fees for international
students have become particularly
burdensome in recent years. By fall 2012,
average tuition fees for international
undergraduate students were $18,641—
more than three times the already high
fees paid by Canadian citizens (Figure
3.3). At some universities, international
students pay over $20,000 a year in
tuition fees, and this figure rises to over
$25,000 for some graduate programs,
and a staggering $57,000 per year for
some professional programs such as
dentistry and law.
High differential fees are an unfair
burden and a barrier to post-secondary
education for international students.
Ultimately, such fees could threaten
Canada’s ability to attract and
retain foreign scholars from diverse
backgrounds.
While international students already contribute over $8
billion annually to the Canadian economy, their potential
contribution as residents and citizens, if naturalised, would
present a boon to the Canadian economy and lessen
shortfalls in the aging labour market.
“[While] domeStic SourceS contribute
the largeSt portion of neW labour
market entrantS [in 2011], immigration
iS proJected to account for all net
labour force groWth in canada Within
the next decade and all population
groWth Within the next tWo decadeS.”
DEmoGraPhiC ChaNGEs
Charging differential tuition fees to international students
is drastically out of step with the long-term needs of
Canadian society. according to the federal government’s
own research, immigrants who have previously worked
or studied in Canada have the easiest time integrating
into the Canadian workforce and prospering in Canadian
society. differential tuition fees work directly against the
Canadian government’s professed goal of building an
educated, prosperous, and innovative society.
2011 annual report to parliament on immigration
citizenship and immigration canada
Figure 3.3 average undergraduaTe TuiTion FeeS
For domeSTiC and inTernaTional
Full-Time STudenTS in Canada
reCommendaTion 8
$20,000
$15,674
$14,000
$12,000
$10,000
$17,571
domestic Student tuition fees
$16,768
$16,000
international Student tuition fees
$18,641
$18,000
$14,487
$8,000
$6,000
2009
2010
2011
$5,581
2008
$5,313
0
$5,146
$2,000
$4,917
$4,000
$4,724
Act to safeguard and strengthen Canada’s
reputation as a country of choice for
international students by:
- regulating the fees charged to international
students;
- prohibiting private institutions from hosting
international students; and
- combining the Off-Campus Work Permit
and Post-Graduation Work Permit into the
Study Permit (Student Visa).
2012
Canadian federation of students a national vision for post-seCondary eduCation
23
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 while
ensuring that Canada’s
economy remains globally
competitive.
a necessary investment
With an annual investment of $2.28 billion, and the adoption of a post-secondary education act, the federal government could
ensure that the Canadian public post-secondary education system remains accessible and of high quality. An investment of
$3.57 billion per year for three years would address outstanding deferred maintenance and safety issues at institutions, halve
student loan debt in Canada, and ensure that previously denied Aboriginal learners receive requisite funding.
Cost of proposals
(amounts in millions)
Creation of new post-secondary education act
$
0
addressing tuition fee increases
$
1,340
Addressing costs of enrolment increases
$
shift funding from tax credits and saving schemes to upfront grants
$
0
Increase funding to Statistics Canada Centre for education statistics
$
10
Increase the number of Canada Graduate scholarships
$
25
Increase funding for Aboriginal education
$
264
act to safegard canada’s reputation as A country of choice for international students
$
0
total annual investment
$
2,278
Addressing deferred maintenance
$
1,000
Cut student loan debt in half by 2015
$
2,500
Clear backlog of funding for aboriginal education
$
78
total short term investment
$
Supporting information
Post-secondary education:
639 Note 1
3,578 Note 2
Note 1 : Funding to reduce tuition fees across Canada to 1992 levels.
Note 2 : Funding per year for three years.
Canadian federation of students a national vision for post-secondary education
25
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