public education for the public good - a national vision for canada's post-secondary education...

8/8/2019 Public Education for the Public Good - A National Vision for Canada's Post-secondary Education System

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338 Somerset Street WestOttawa, Ontario K2P 0J9

Tel: (613) 232 7394Fax: (613) 232 0276

E-mail: [email protected]

Web: www.cfs-fcee.ca

This report is available in digitalform on the Federations website atwww.cfs-fcee.ca/

Ce rapport est galementdisponible en francais.

CanadianFederationoF StudentS

FrancoisdeHalleux CherylMazeWalker JeremyWilburn

JonErickson UniversityofBritishColumbiaLibrary

TheFederationisthankfultothefollowingphotographerswhoseworkswereusedunderaCreativeCommonslicenseinthisdocument:


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With over 600,000 members, represented by more than 80 students unions in all ten provinces, theCanadian Federation of Students is the voice of post-secondary students in Canada. The Federation andits 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 part and full-time.

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introduction

studentsWorKing

publicopinionpolling

recoMMendations

canadas post-secondarY educationsYsteM

education statistics

student debt in canada

aboriginal education

research and graduate studies

costingof recoMMendations

further reading

references

1

2

3

5

6

13

14

16

19

22

23

24

table oF

contents


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Canadian federation of studentsa national viSion For poSt-SeCondary eduCation

While Canada has begun to show signs of recovery from therecession, the global recovery appears increasingly shaky.In Canada and around the world, millions of the people wholost their jobs are still unemployed and the job market in theUnited States, Canadas largest trading partner, still shows few

signs of recovery.

Following the large loss of manufacturing and other jobsduring the recession, many Canadians returned to school foreducation and retraining. Combined with a large cohort ofhigh school graduates, this has produced the largest class ofpost-secondary students in Canadas history. While studentscontinue to enrol in higher education, saddling a generationwith billions of dollars in debt will have far reaching implicationsfor Canadas economy and socio-economic equality.

This massive student cohort reects the new economic reality:

a highly educated workforce is the foundation of Canadaseconomy. While the recession saw a major downturn inCanadas manufacturing sector, the importance of a highlyskilled workforce reects a change that has been underwayfor the past two decades.

With a highly educated workforce and a relatively stableeconomy compared to other OECD countries, Canada ispositioned to emerge from the global recession in a strongerposition than other Western nations. However, record-highlevels of student debt and a post-secondary education

system that is increasingly out of reach for ordinary Canadiansthreatens Canadas long-term economic prosperity.

In the absence of a national strategy for post-secondaryeducation divergent paths have emerged between theprovinces post-secondary education systems. Across thecountry, students bear signicantly dierent burdens forpursuing higher education. This disparity threatens Canadaslong-term economic strength and social equality. In addition,Aboriginal peoples, the fastest growing population in Canada,are still largely shut out of post-secondary education andprevented from achieving their potential.

Following two decades of declining public funding, Canadascolleges and universities are seriously underfunded. Classsizes have increased signicantly, while needed repairs toinfrastructure have gone unaddressed. Tuition fees have

grown more than four-fold over the past two decades, causingaverage student debt to increase to over $25,000.

Taking advantage of Canadas current relative economicstrength, compared to other industrialised nations, requiresleadership at the federal level and a substantial reinvestmentin students and colleges and universities. This documentoutlines ve recommendations for the federal governmentto implement in order to build and maintain a strong post-secondary system that trains a workforce capable ofcompeting in the twenty-rst century.

Public educationFor the Public goodVg p-cdaY duca a uu cMc ucc ad ca QuaY

introductio

n-publiceduca

tionforthepublicgood

1


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publiC eduCation, For the publiC goodCanadian federation of students2

Students are struggling to aord theirpost-secondary education more than anypreviousgeneration.Recordhightuitionfeescombinedwiththerecessionhavetakenaheavy toll on students and their families,with the worst of it borne by vulnerablegroupsincludingthosewithdisabilities,andracialised andAboriginal peoples. Rapidly

increasingstudentcostsanda lowerthanaverage availabilityof summerwork havecontributed to an increasing number ofstudentsworkingduringtheschoolyear.

Research has found that working whilein school can have a negative eecton a students academic performance,particularly when the student is workingmorethan20hoursperweek,anoccurrencethatisbecomingmuchmorecommon.

high fees push students to

work more, study lessstudentunemploymentremained highthis past summer

PERCETFSTUETSWHWEREUEMPLEURTHESUMMER

25%

20%

15%

10%

5%

0%2008 2009 2010

substantiallymore studentstoday workduring theschool year

PERCETFSTUETSWHWREURTHEEAR,WHLEATTEUERST

50%

40%

30%

20%

10%

0%1976 2008

students sayworkinghas a negativeeffect on academicperformance

STUETSWHWEREASEFTHETHUHTWRHAAEATEEFFECTACAEMCPERFRMACE

75%

60%

45%

30%

15%

0%Yes No



7/30Canadian federation of studentsa national viSion For poSt-SeCondary eduCation

a majorityof Canadians

believe that: auniversityorcollegeeducation

ismoreimportantthanevertoget

byintodayssociety;

theederalgovernmentshouldattachconditionstotranser

paymentstotheprovinces;

thegovernmentshouldinvest

moreinpost-secondaryeducation,

eveniitmeanstheyhavetopay

alittlemoreintaxes;

thegovernmentshouldinvestin

makingcollegeoruniversitymore

afordable,eveniitmeansa

smallincreaseintaxes;and

auniversityorcollegeeducation

shouldbeprovidedreeor

everyonewhocantafordit.

eslts re tken from rris/deim rnom telehone srvey of 2,000 lt cnins

onte between aril 8 n aril 19, 2010. he oll ws ommissione by the cnin

assoition of university ehers n the cnin eertion of tent s. tionl reslts

re onsiere rte within 2.2 erente oints, 19 times ot of 20.

studentsW

orKingandpublicopinionpolling

3

67%Wnt the feerl overnment to set onitions on trnsferyments to ensre tht rovines se the money sintene.

59%hink overnments re not oin enoh to mke sre thteveryone who is qlie hs hne to et niversity orollee etion.

79%are inst inreses in tition fees, with 35% sortin retion from rrent levels.

canadians wantleadershiP

should tuition Fees

be increased, Frozen

or reduced?

50%

40%

30%

20%

10%

0%

Reduced - 35%

FRozeN - 44%

INcReased - 15%

what is the most imPortant thing

For government to do For college

and university education?

50%

40%

30%

20%

10%

0%

LoweR tuItIoN Fees

aNd studeNt debt - 48%

cReate moRe spaces FoR

quaLIFIed studeNts - 21%

Reduce cLass sIzes bY hIRINg

moRe pRoFessoRs - 14%

INvest moRe IN ReseaRch - 11%

the quality oF education has

suFFered because oF inadequate

government Funding

agRee - 51%

dIsagRee - 33%

No opINIoN

it is more diFFicult today to get a

university or college education

than it was ten years ago

agRee - 50%

dIsagRee - 36%

No opINIoN



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cMMdarecoMMendations

5

Foster innovation: Funding For research and graduate studies

Increase the number of Canada Graduate Scholarships to 3,000 consistent with average growth inthe program since 2003 to be distributed proportionally among the research councils according toenrolment gures.

develoP and imPlement a national vision For a high quality and aFFordable

system oF Post-secondary education

The federal government should, in cooperation with the provinces, implement a federal Post-SecondaryEducation Act modeled after the principles of the Canada Health Act, accompanied by a dedicatedcash transfer with funding allocated to:

Immediately restore per capita funding to 1992 levels; Over three years, reduce tuition fees to 1992 levels; and Over ve years, eliminate deferred maintenance at Canadas colleges and universities.

track success: measure results

Increase funding by $10 million to Statistics Canadas branch for the collection and analysis of post-secondary education statistics.

oPen doors: reduce student debt

Increase the value and number of non-repayable grants available to student, by redirecting fundsallocated 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.

meet canadas obligations: Fund aboriginal education

Remove the funding cap on increases to the Post-Secondary Student Support Program and ensurethat every eligible First Nations and Inuit learner is provided adequate funding to attend post-secondary education.


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For over one-half century, the federalgovernmenthasrecognisedthecrucialrolepost-secondary education plays in drivingeconomic growth and innovation, andincreasing social and economic equality.The substantial public investments thatled to the expansion of universities andthecreationofcollegesinthe1960swerebased on the belief that access to post-secondaryeducationshouldbedictatedby

abilityanddesire,notnancialmeans.Canadaspublicpost-secondaryeducationsystemhasbecomeremarkablylesspublicover the last two decades. Beginning inthe1980s,the federal government limitedincreases in transfers to the provincesfor post-secondary education, eectivelydecreasing per-student funding. n 1995,thefederal governmentmadeoneof thedeepest funding cuts in history, slashingtransfers to the provinces for socialprogramsby$7 billion. neveryprovince,withtheexceptionofQubec,thisfundingcutwaspasseddirectlyontostudentsandtheirfamiliesintheformofmassivetuitionfeeincreases.

espite the federal government postingmulti-billion dollar surpluses for overa decade, funding for post-secondaryeducationwasnotrestored.

These cuts triggered provinces to spendless on higher education, and paved theway for a dramatic shift towards privatefundingas theprimarysourceofrevenuefor Canadas universities and colleges.Today, post-secondary institutions relylargely on private sources of funding,primarilythroughtuitionandancillaryfees.Almosthalf of theoperational funding foruniversities today comes from students

themselves.Prior to these cuts, access to post-secondary education was similar fromprovince to province. Today, tuition feesvary widely, making geography one ofthe largestfactors indeterminingwhetheran individual can aord toobtaina post-secondarycredential.

nordertoreduceinequalitiesacrosssocio-economicgroups andregional disparities,

andincreasethecountryscompetitivenessinternationally, the federal governmentmustonceagainprioritiseaordable,high-qualitypost-secondaryeducation.

canadas post-secondaryeducation system


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canadaspo

st-secondarYed

ucationsYsteM

7

Canadians overwhelmingly believe thatthe federal government must provide moresupporttothepost-secondaryeducation.WhileCanadas social programs are often treatedas expendable, funding such programs is anecessity in order for Canada tomaintain itsstandardoflivingandpreservethe stability ofoureconomy.

Thefederalgovernmentpostedan$18.1billionsurplusintheyear2000.By2009thatsurplus

had turned into a multi-billion dollar decit.Whilealargepartofthedecitcanbeattributedtoa downturn in theeconomyand short-termstimulus spending, Parliamentary BudgetcerevinPageprojectsthatCanadahasastructuraldecitthat, withoutcorrectiveaction,will continue after Canadas economy hasreboundedand stimulus spendinghas wounddown.

Currentfundingpriorities,andascalcapacity

that has been reduced by multi-billion dollartax cuts, undermine the federal governmentsabilitytoaordto adequately retrainofout-of-work Canadians and train thecountrys futureworkforce.

nvestments in social programs, such ashealth care and post-secondary education,continuously rank as top priorities forCanadians.narecentpollconductedbyHarris-ecima,only8percentofCanadiansidentied

tax cuts, and 12 percent decit reduction, as

the most important priority for the federalgovernment. By comparison, over 60percentidentied investments in social programs,reducing unemployment, or reducing povertyas their top priority. espite this, the federalgovernmenthasprioritisedtaxcutsanddecitreductionoverneededinvestmentsinCanadasailingsocialprograms.

Signicant reductions in Canadas corporatetax rate, brought in during recent years with

theostensiblegoalofencouraginginvestment,have failed to place Canada in a position ofsignicanteconomicadvantage.

na recentreport,theWorldEconomicForumplaced Canada in the middleof the pack forinvestmentclimate.Thereportratedtheimpactthat the level of taxation has on investment.Canadaexperiencedonlyaslightincreaseinitsrating,comparedtotwoyearsearlier,whenthemost recentroundof corporatetax cutswere

beginning to bephased in.Cuttingcorporatetax rates is clearly an ineective mechanismto increase investment. This policy has failedtopaysucientdividendstojustifyitsmassivecost.

Providingadequatefundingforpost-secondaryeducationiswellwithinthegovernmentsreach,and will do far more to guarantee Canadasfuture economic success than reducing thegovernmentsscalcapacitythroughineective

taxcuts.

government spending:a question of priorities

$13.7illin

annl ost to the

overnment of

lnne ororte

tx ts by 2013

There is... not enoughrevenue to pay forthe programs andservices Canadianscherish most; but that,

is a political problemrooted in years of taxcuts for corporationsand the wealthy.

caNadIaN ceNtReFoR poLIcYaLteRNatIesalrniv Frlbg 2010

60%of cnins believe tht

investments in soilrorms n rein

overty n nemloymentre hiher riorities thn txts n eit retion.


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Sincethefederalfundingcutsofthemid-nineties,theresponsibility for nancing post-secondary education

has been downloaded on the backs of studentsand their families.overnmentgrants asa shareofuniversity operating revenue have plummeted tonearly50percentinsomeprovinces,downfromover80percentlessthanthreedecadesago.Thisresultedintheshareofuniversitybudgetsfundedbytuitionfeesmorethandoublingbetween1988and2008,from14to35percent(Figure1.1).

Whilegovernmentfundinghasbeenpartiallyrestored,fee increases have made up the majority of the

dierence.verthepastfteenyears,tuitionfeeshavegrowntobecomethesinglelargestexpenseformostuniversityandcollegestudents,increasingsignicantlyfasterthaninationandallotherstudentcosts(Figure1.2).Thisisespeciallyconcerning,asstudieshavefoundthat high tuition fees limit access topost-secondaryeducationfor students fromlow-andmiddle-incomebackgrounds.

Statistics Canada reports that students from low-incomefamiliesarelessthanhalfaslikelytoparticipate

inuniversitythanthosefromhigh-incomehouseholds.Asurveyconductedbythenationalstatisticalagencytallied thereasonshigh schoolgraduatesdidnotgoontoparticipateinpost-secondaryeducation.tfoundthat,byanoverwhelmingmargin,themostfrequentlyreportedreasonswerenancial.

Tuitionfeesactasaattaxthatisappliedtoallstudentsatthesamerate,regardlessoftheirnancialresources.The argument that post-secondary education willincrease a students long-term earning potential is

often presented as an argument against tuition feeregulation.

Some organisations make the dubious claim thatuniversitygraduateswillearnan additional$1 million

overtheirlifetimeasaresultofobtainingauniversitydegree or college diploma. This mythical $1 milliongurehasbeenthoroughlydebunked.Researchhasfoundthatmostgraduatesaremiddle-incomeearners.The rganisation for Economic Co-operation andevelopment (EC) reports that male graduatesearnonlyanadditional$149,373overtheirlifetime.Thereturnissubstantiallylowerforfemalegraduateswho,onaverage,earn only an additional $87,280.iventhatatleast70percentofnewjobsrequireadegree,

post-secondaryeducationhasbecome a virtual pre-requisite for participation in the labourmarket, not aguaranteeoffuturewealth.

The most equitable way to nance the post-secondary education system is through theprogressiveincometaxsystem,whichrecoversthecostofanindividualseducationmanytimesover.naddition,thissystemensuresthatthewealthyandpooraretaxedinafairmanner,reectiveoftheirrespectiveability tocontributeandtheeconomicbenetobtainedasaresultoftheireducation.

EducationcostsareasourceofsignicantuneaseamongCanadians.According toa recentHarris/ecimapoll,Canadiansranktuitionfeereductionsas the top priority for government investmentin education. The same poll also found that 67per cent of Canadiansincluding a majority ofQubec residentswant the federal governmentto exercise more control over transfers to theprovincesforpost-secondaryeducation.

fees are a barrier: let theincome tax system do its job

figure 1.2 tuition fees grow faster

than all other student costs

figure 1.1: university operatingrevenue divided between tuition fees

and government funding

50%

40%

30%

20%

10%

0%

2000

2001

2001

2003

2004

2005

2006

2007

2008

2009

2010

tuItIoN Fees

pubLIc tRaNspoRtatIoN

Food

INFLatIoN

ReNt

100%

80%

60%

40%

20%

0%1978 1988 1998 2008

tuItIoN aNd otheR Fees

goveRNmeNt FuNdINg


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canadaspo

st-secondarYe

ducationsYsteM

9

The2007federalbudgetcontainedthelargestincrease to core transfer payments for post-

secondaryeducationinfteenyears,increasingtransferpaymentsby$700million.Althoughthiswasthelargestincreaseinrecentmemory,cashtransferpaymentsforpost-secondaryeducationarestillroughly$410millionshortof1992levelswhen accounting for ination and populationgrowth.

The benets of investing in higher educationgowell beyond the cost of direct investmentin teachers, sta, and infrastructure. A highly

educated workforce increases the tax baseand reduces the cost of a number of socialprograms, including health care, public safetyandemploymentinsurance.Arecentreportbythe EC found that the direct public benetof investing in post-secondary education wasinexcessof$100,000perindividual:anamountthatexceedsthecostsby$62,141.

Since the cuts to federal transfers paymentsin the nineties, the quality of post-secondary

education has signicantly declined. Classsizeshaveincreased substantially,while at thesametimeinstitutionshavepushedtocasualisethe academic workforce, replacing full-timetenuredfacultymemberswithoverworkedandinadequatelycompensatedsessionalinstructors.Between1990and2006,theratioofstudentstofull-time faculty members increased by almost40percent.

University and college budgets have become

strained to such an extent that deferredmaintenancehasbeguntoposeserioushealth

andsafetyrisks tostudentsand sta. n2009,theCanadianAssociationofUniversityBusiness

cersestimatedthatthetotalvalueofdeferredmaintenanceonCanadiancampuseswasmorethan$5billion,halfofwhichisconsideredurgent,a35percentincreaseinlessthanadecade.

The2009federalbudgetallocated$2billiontocollege and university infrastructure. However,the government placed conditions on thefunding,specifyingthatitonlygotonewprojectsand those with a research-intensive focus. naddition,thegovernmentrequiredthatprovincial

governmentsor theprivatesectorcontributeatleast fty percent of the projects cost. Theserestrictions prevented the funds from goingto badly needed renovations, resulting in thehigh levels of deferred maintenance goingunaddressed.

espite the substantial reinvestment in post-secondary education in recent years, thefederal government has actually done verylittletoensurethattheseinvestmentswillhave

their desired impact. The lack of regulationsgoverning the Canada Social Transfer (CST)is only a symptom of a broader problem: thefederalgovernmenthasneveroutlineditsvisionforCanadaspost-secondaryeducationsystem.Without such a vision, federal investmentswillcontinuetobeunderminedanddevalued.

national leadershipneeded

Lets be clear about theeffect of unsustainablecost and the resultingdebts on individualstudents...The lower thefees, the more egalitarianthe society. The lowerthe fees, the more weare able to release the

genius of the citizenryas a whole. And thatgenius, that collectiveunconscious is the key toa successful democracy.

JohN RaLstoN sauL

64%of cninsbelieve thtthe ost of ost-seonryetion is toohih.


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Althoughthefederalgovernmentisoneofthelargestsourcesoffundingforpost-secondaryeducation,thereisnomechanismtoensurethat the funds transferred to provincialgovernments,whoadministereducation,areactuallyspentonpost-secondaryeducation.Under previous federal-provincial fundingmodels, the provinces had to match thefederal governments investments in ordertoreceivefunding.faprovincialgovernmentchose to cut funding, federal transfers

were reduced by a proportionate amount.The current block-funding modelwithfunds transferred through theCSThasnorequirement that provincial governmentsmaintain their funding in order to receivefederalmoney.

There have been numerousexamples ofprovinces receiving federal funds, thenreducing their fundingfor post-secondaryeducation. For example, in 2008, the

overnment of British Columbia cutfunding to universities by $50 millionin the same year that it received over$110millioninnewfundingfromthefederalgovernment. The federal governmentmust accept its responsibility to ensurethat federal funds for social programsare used as intended. n the absence offederal oversight, provincial governmentshave been free tomisappropriate federal

transfers intended for post-secondaryeducation.

Thereisconsensusinthepost-secondaryeducationsectorthatthecurrentdesignoftransferpaymentmechanismsisinsucientto meet the challenges facing Canadaspost-secondaryeducationsystem.

Thefederalgovernmenthasaresponsibilityto ensure equality of access to post-secondary education in every province.

espite this, the barriers facing studentsvary greatly from province to province.StudentsattendingtheMemorialUniversityofewfoundlandpayfeesthatarelessthanhalfthosechargedatalhousieUniversity.Similarly a studentstudying lawatMcillUniversity pays just one-tenth the fees astudypaystostudylawattheUniversityofToronto.

Althoughfederalpoliticiansoftenattemptto

deectresponsibilitybyclaimingthatpost-secondary education is the exclusivedomain of provincial governments, theyare only partially correct. A distinctionmustbedrawnbetweenjurisdictionandresponsibility.Educationisconstitutionallywithinthelegislativejurisdictionofprovincialgovernments.However,thisassignmentoflegal and legislative authority should notbe confused with the responsibility of alllevels of government to coordinate their

towards a post-secondary education act


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canadaspo

st-secondarYed

ucationsYsteM

11

behaviourinordertobuildthebestsystemofpost-secondaryeducationpossible.

fthe federal governmentis toplay a role in reducingsocio-economic inequality and increasing global competitiveness,provincialcoordinationisnotanoption,butratheranecessity.Reductionsinfederalspendingareonlypossiblebecauseofalackofleadership.

Canadahas a solid recordof federal-provincial collaboration,where federal legislation is inplace to lendstructure to therelationship.Canadashealthcaresystemisalivingexampleof

howgovernmentscanprioritisetheneedsofCanadiansoverjurisdictionaldebates.

Withtheincreaseincorefundingannouncedinthe2007federalbudget, thenextlogicalstepis toadopt federal legislationtogovern the funding allocated for post-secondary education.Earmarkingfundingforpost-secondaryeducation,ashasbeenthecaseinrecentfederalbudgets,isnotenough.

The Canadian Federation of Students and the CanadianAssociation of University Teachers both recommend theadoptionoflegislationorotherbindingformsofagreementthat

wouldestablishconditionsforfederalpost-secondaryeducationtransfers. These conditions must commit the provinces toupholdingprinciplessimilartothoseoftheCanadaHealthAct.Specically, the act should bebased on principlesof publicadministration, aordability, comprehensiveness, democraticgovernance, and academic freedom. n return for upholdingthese principles, provincial governments would receiveincreasedandstablefundingfromthefederalgovernment.

Provincialgovernmentshavesignalledthattheyareinterestedinexploringfurthercollaborationwith the federal government

to improve the aordability and quality of post-secondaryeducation.Recently,allprovincialgovernmentshavesignedontothefederally-initiatedServiceeliveryisionforintegratingprovincialandfederalstudentloanandgrantsprograms.

Thefederalgovernmentmustusethiswillingnesstoreachanagreementontransfersforpost-secondaryeducation,inpartbyrestoringcashtransfer levelsto 1992levels.Mostimportantly,the federal government and provincial governments mustestablishlong-termobjectives,includingreducingtuitionfees.

recommendation 1The federal government should, incooperation with the provinces, implementa federal Post-Secondary Education Act,modeled after the principles of the CanadaHealth Act, accompanied by a dedicated

cash transfer with funding allocated to: Immediately restore per capita funding

to 1992 levels;

Over three years, reduce tuition fees to1992 levels; and

Over ve years, eliminate deferredmaintenance at Canadas colleges anduniversities.


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educations

tatistics

13

Collectivelythefederalgovernmentandprovincialgovernmentsspendbillionsofdollarsperyearonpost-secondaryeducation,but adequate information to fully analyse the eectiveness ofthatspendingisnotcollected.A2006reportbytherganisationforEconomicCooperationandevelopment(EC)notedthatCanadacouldnotprovidedataon57ofthe96indicatorsusedtocomparecountrieswithrespecttopost-secondaryeducation.RecentlytheCouncilofMinistersofEducationhasstartedtofundsome collection of these missing statistics, through StatisticsCanada.HoweverthisisnotasustainablesolutiontothefederalgovernmentsunderfundingoftheeducationbranchofCanadas

nationalstatisticalagency.

Canadadoesnotcurrentlycollectinformationabouttheageofstudentswhentheyenterorleavethepost-secondaryeducationsystem, nor is data collected on completion rates for highereducationor the average length that a student spends in thepost-secondarysystem.namoregeneralsense,Canadalacksmuchofthedataregardingboththeinputsandoutcomesofthepost-secondaryeducationsystem.

While a signicant number of students attend private post-secondary colleges, these institutions lack both government

oversightanddatacollectionregardingtheiroperations.Privatecollegeslackaccountabilityandhavebeenrepeatedlyfoundtonotmeetbasic standards regardingquality andadministration.WhileCanadawouldbebetterowithacompletelypublicpost-secondaryeducationsystem,shouldprivateinstitutionscontinuetoexistitisimportantthatsucientdataiscollectedtomonitortheiroperations.

nMay 2010, the epartment ofHuman Resources and SkillsevelopmentCanadaannouncedthatitwouldceasefundingthe

outh in Transition Survey(TS) and theational LongitudinalSurvey onChildren and outh. These studies arethe primarysourcesofinformationonwhopursuespost-secondaryeducation,andwho isexcludedfrom it. Theyprovide vitalinformationonstudents, their rst post-graduation interaction with the labourmarket,andtherelationshipbetweeneducationandemployment.TheTSiscriticaltofulllingCanadasinternationalcommitmenttoprovide theECwithcomparable dataon post-secondaryeducation.

Without the data suppliedbythesestudiesit isimpossible forgovernmentstomakeinformeddecisionsaboutpost-secondaryeducationpoliciesandpriorities.Theabsenceofthisinformationwillalsomakeitextremelydicultytoconductfurtherresearchregardingthepost-secondaryeducationsystem.

Whilethecoststodiscontinuingresearchofthisnaturearegreat,theamountof fundingnecessaryto properlyconduct researchonstudentsandthepost-secondarysystemisextremelysmall.Anincreaseof$10million,lessthanthreetenthsofonepercentof what the federal government spends on post-secondaryeducation,wouldestablishtheresourcesneededtocarryoutthisresearch.

tracking success: collectingeducation statistics

recommendation 2Increase funding by $10 million toStatistics Canadas branch for thecollection and analysis of post-secondary education statistics.


18/30

Canadiansaremakingextraordinarysacricesto

preparethemselvesfor anevolvingworkplace.Past government decisions at the federal and

provincial levels are forcing studentsand their

familiestotakeonmoreeducation-relateddebt

than any previous generation, during a time

when earnings for many families have been

stagnantforthepasttwentyyears.

Skyrocketingtuitionfeesandtheprevalenceof

loan-based nancial assistance have pushed

student debt to historic levels. This past year,

almost400,000studentswereforcedtoborrow

tonance their education.Loansdisbursedby

theCanadaStudentLoansProgram,lessthose

thathavebeenrepaid,areincreasingbynearly

$1milliondollarsaday.

nSeptember2010thetotalamountofstudent

loans owed to the government reached

$15 billion, the legislative ceiling set by the

Canada Student Financial Assistance Act. n

responsethegovernmentalteredthedenitionof student loan to exclude over $1.5 billion

in federal student debt. Even with this new

denition,itisexpectedthatfederalstudentdebt

willhit the legislative ceilingagainin thenear

future.naddition,the$15billiongureactually

only accounts for a portion of Canadas total

education-related debt, as it does not include

provincialandpersonalloans,linesofcredit,and

creditcarddebt.

the impaCt of debt on students and

soCiety

Many students are adverse to taking on the

high levels ofdebtthatare requiredto aord

a college or university degree. ebt aversion

is thepersonal calculation thatthe sacriceof

debtaccumulationandrepaymentarenotworth

the riskassociatedwiththe costs of obtaining

a degreeordiploma.Research hasfound that

debt aversion is strong among those who

chosenottopursuepost-secondaryeducation.

f the 70 percent of high school graduateswho cite nancial reasons as the main factor

in not attendingpost-secondary education,for

oneinfouraccumulatingdebtwasthebiggest

deterrent.

n addition, students from marginalised

communities, lower income backgrounds,

and single parents, are more likely to hold

negative feelings about accumulating student

debt, leading to additional barriers for already

marginalisedpeople.Research nds that debt levels have a direct

impactonsuccessandretention.Studentswith

higherdebtlevelsarefarlesslikelytocomplete

theirdegreeordiploma.

After graduation student debt distorts career

choice, especially for professionals, which

undermines some peoples access to health

careand legal aid.Studiesofmedicaland law

students found that debt levels cause these

students to seek higher paying jobs in elds

Studentdebtloadshaveneverbeenhigher...Peoplegraduatingwith

$30,000instudentloansontopof$5,000increditcarddebt...Theresultismanystudentsfallintoaholetheycanteasilyclimboutof.

LaurieCampbell,Executiveirector

CreditCanada

students today:buried in debt


19/30


or regions thatare notnecessarilytheir rst choice.Studentdebt

appears to bedriving committedyoung doctorsaway fromfamily

practiceand younglawyers awayfrom thepublicservice andpro

bonowork.Highlevelsofdebtalsopreventindividualsfromstartingfamilies,workinginpublicservicecareers,purchasingahome,and

pursuinglowpayingorvolunteerexperienceinacareerrelatedto

theeldofstudy,oftennecessarytogetafootinthedoor.

invest in effeCtive measures: grants not loans

n fall2009,the Millennium Scholarship Foundationwas replaced

with a publicly accountable federal grant program. For the rst

time the federal government has the mechanism necessary to

provide direct nancial assistance to students.While creating the

CanadaStudentrantsProgramisanimportantrststep,inorder

tomeaningfullyreducestudentdebt,alargerinvestmentinup-frontgrantsisrequired.

Taxcreditsandsavingsschemesarebyfarthemostexpensivedirect

federalmeasureforpost-secondaryeducation.Themostrecentdata

indicates that thetotalcostof thefederalgovernmentstaxcredits

andsavingsschemeswillexceed$2.5billionthisyear.

espitetheirlargepricetag,federaltaxexpendituresareaverypoor

instrumenttoeitherimproveaccesstopost-secondaryeducationor

relievestudentdebt.Allstudentsqualifyfortaxcredits,regardlessof

nancialneed,thusdivertingvastsumsofpublicfundingtofamilies

whodonotnecessarilyneedthesupport.

Thismassivepublicexpenditure,ifoeredasupfrontgrants,could

turn every dollar loaned by the Canada Student Loans Program

(CSLP) into a non-repayable grant. The CSLP expects to lend

approximately$2.1 billion during the2010-11 academicyear. f theamountofmoneythefederalgovernmentspentonsavingsschemes

andeducationrelatedtaxcreditseachyearhadbeensimplyshifted

totheCanadaStudentrantsProgram, studentdebtowedto the

federalgovernmentcouldbeeliminated.

studentdebtincanada

15

$2.12illinamont tht the cn tent ons

prorm exets to len for the 2010-11 yer.

$2.52illin

aroximte ost of etion tx reitsn svins shemes for the 2009-10 yer.

recommendation 3

Increase the value and number ofnon-repayable grants available tostudents by redirecting funds allocatedto education-related tax credits andsavings schemes to the CanadaStudent Grants Program, and allowgraduate students to qualify for grantsunder the Program.

[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

aLteRNatIe FedeRaLbudet 2010cnin cnr fr pliyalrniv

[Canada Education

Savings Grants]s give

scarce public funds to

the wrong households...

the CESG program

should be discontinued.

KeIN mILLIaNubc eni


20/30

aboriginal learners

Post-secondary education plays a vital role inimprovingthestandardoflivinganddevelopinga more equitable society. nvestments inpost-secondary education provide essentialimprovements to the well-being of Aboriginalpeoplesandcommunities.

CanadasAboriginalpopulationisgrowingatsixtimesthe rateofthe non-Aboriginalpopulation.Accordingtothe2006census,overonemillionpeople, roughly four percent of Canadaspopulation,identiedasAboriginal.fthese,48percentwereundertheageof24.tisestimatedthatover 300,000Aboriginal youthcouldenterthe labour forcein the next 15years alone. nMay 2009, the Centre for the Study of LivingStandardsreportedthatclosingtheeducationalgap wouldlead toan additional$179 billion indirectPgrowth,andover$400billionintotal

growthoverthenext20years.Educations place as a right for Aboriginalpeoples is the result of a series of treatiessignedoverthecourseofseveraldecadesandrecognised in Canadas Constitution.However,despitethecleareconomicandmoralnecessityto ensure access to education for Aboriginalpeoples, funding for their education hasremainedstagnantformorethanadecade.

n1968,theepartmentofndianandorthern

Aairs Canada (AC) began providing directfunding for First ations and nuit students

to attend post-secondary education. Theseprograms were clearly successful. n 1977-78,only3,600studentsreceivedsupporttoattendcollegeoruniversity;by1999-2000,over27,000students beneted. espite this investment,educational attainment levels of Aboriginalpeoples remain signicantly lower than theoverallpopulation.

The gap in participation in post-secondary

education can be attributed to the signicantand complex barriers that Aboriginal studentsface.ResearchhasfoundthatAboriginalpeopleare much more likely to be debt-averse andmorereluctant toaccess loan-based programsiftheyareinnancialneed.Aboriginalstudentsare also more likely to enter post-secondaryeducation at a later age, which makes themmore likely tohavedependents. This leadstohigher costs such as childcare and relocation.Additionally,approximately20percentoftheFirstations population isunemployed, includingastaggering41percentofthoseinthe15-24yearagegroup.Thislackofaccesstoworkseverelylimitsnancialresourcesforfamiliestopayfortherisingcostsofcollegeoruniversity.

AmajorityofAboriginalpeopleshaveaspirationsto pursue post-secondary studies, but aredeterredbynancialbarriers,causedbyalackof

federalfundingforpost-secondaryeducation.

keeping the promise:funding for

aboriginal education

Improving the social and

economic well-being of the

Aboriginal population is not

only a moral imperative; it is a

sound investment which will

pay substantial dividends in the

coming decades. Aboriginaleducation must be a key

component in any such effort..

Centre for the studyof living standards2009 Rr Rr

$400

illin

the otentil gdp ontribtion ofaboriinl cnins over the nexttwenty yers if aboriinl etionlevels rose to mth those of theenerl oltion.

[the] two percent increase to the

overall [PSSSP] budget does not

meet the increasing costs of tuitionand other expenses, such as cost

of living and books, and it has been

recommended by the Standing

Committee on Aboriginal Affairs

and Northern Affairs that it be

eliminated for the PSE program

indian and northernaffairs Canadaevlin f pnry

ein prgr


21/30


funding for aboriginal eduCation

Currently, the federal government provides

nancialassistancetostatusFirstationsandnuit

students through the Post-Secondary Student

SupportProgram(PSSSP).ThePSSSPismeantto

facilitateaccesstopost-secondaryeducationand

alleviatethenancialbarriersfacedbyAboriginal

students by covering the costs of tuition fees,

books,supplies,travel,andlivingexpenses.

Prior to 1992, funding was determined by the

numberofeligiblestudentsand theirexpenses.

Between 1992 and 1997, the model shifted

from per-student funding to block funding. n

1996, increasesin fundingwerecapped attwopercentannually.Asaresultofthisstrictlimiton

increases, fundinghasbeenunable tokeepup

withincreasinglivingcosts,inationandtuitionfee

increasesthataveragedfourpercentthisyear.

Prior to theimplementationof thefundingcap

approximately 27,000 Aboriginal students

received nancial assistance. By 2006, the

numberhadfallentojustover22,000.Thelack

offundinghasforcedcommunitiesadministering

thefundstomakedicultdecisionsaboutwhoreceives fundingeach year. tis estimated that

between2001and2006,over10,500students

weredenied funding,with roughly3,000more

studentsdeniedeachyear.uetotheshortfallin

funding,priorityisoftengiventoshortercollegeprograms to thedetriment of moreexpensive

professionalorpost-graduateprogramsofstudy.

According to the Assembly of First ations, a

total of$545millionis required toensure that

noAboriginal student isdeniedaccess topost-

secondary education due to nancial barriers,

andthatthosestudentsthatarefundedreceive

anadequatelevelofsupport.AsACcurrently

provides$306million,anadditional$239million

wouldberequired.Anadditional$208millionisneededtoaddresstheroughly19,000students

that have previously been denied funding. n

Qubec, an injectionof$24million(in addition

to$23milliontoaddressthebacklog)wouldbe

requiredtomeettheneedsofAboriginalstudents

in that province. This fundingwould support atotal of 36,382 students across Canada and

roughly4,000inQubec.Thefundingdisbursed

through the PSSSP has a proven track record

for those who can access it. Most Aboriginal

studentswhoareabletoaccessfundingthrough

the PSSSPsucceedin completingtheirstudies

and nd meaningful work. Regardless of their

place of residence, the majority of Aboriginal

graduates return to work in their communities

andareemployedintheireldofstudy,achieving

economic self-reliance andhelping to develop

healthyandstablecommunities.

aboriginal

education

17

recommendation 4Remove the funding cap on increases to the Post-Secondary Student Support Program and ensure thatevery eligible First Nations and Inuit learner is providedadequate funding to attend post-secondary education.


22/30


23/30


nvestment in graduate studies provides the

foundation for long-term innovation and trains

thehighlyskilledworkersandresearchersthat

are needed torespondto the economicand

socialchallengesCanadafacesnowandinthe

future.

However, despite Canadas relatively high

level of university graduation, Canada ranks

last among peer countries forPh graduation

(Figure 5.3 on next page). This is despite a

dramatic expansion of graduate studies overthelasttenyears.

Enrolment in graduate studies increased by

37.5percentbetween1996 and2006 (Figure

5.1).espitethis,therehavebeenonlymodest

funding increases to the federal research

granting councils and scholarships that make

graduate education aordable. The federal

governments lackof commitment to research

and graduate education limits the number of

masters and doctoral students that can befunded,thusreducingthepoolofhighlyskilled

researchers.naddition,theselimitsreducethe

qualityof graduateeducationand preventthe

maximumutilisationofuniversityresearch.

Leading up to the 2009 budget, there had

been modest improvements to research

fundingdelivered throughthe federalgranting

councils. However, the tens of millions of

dollars in cuts contained in the 2009budget

underminedtheprogressthathadbeenmade

towardsrecoveringfromthe largercutsofthe

1990s.Thesecutshavepreventedfunding for

universityresearchfromkeepingpacewiththe

increasesingraduatestudentenrolment.

n addition, recent federal budgets have also

targeted an increasing amount of research

funding for the short-term priorities of the

privatesector,thusunderminingbasicresearch,

whichleadstolong-terminnovation.The2009

budgetprovidedfundingtotheSocialSciences

and Humanities Research Council (SSHRC)for additional Canada raduate Scholarships

(CS),butdirectedtheygotobusiness-related

degrees. Research funded by the atural

Science and Engineering Research Council

hasalsobecome increasinglydirected toward

government-prioritisedsectorsoftheeconomy.

This approach of directing research priorities

undermines the independence and peer-

review standards within Canadas research

community and has earned criticism frommanyinthescienticandresearchcommunity.

Research policy of this nature isshort-sighted

andguaranteesthatCanadawillfailtotakefull

advantageofCanadasworld-classresearchers.

raduate students face many obstacles that

includelimitedfundingoptions,anincreasingly

commercialised and restrictive research

environment, rising tuition fees, no access to

needs-basedgrants,andhighlevelsofstudentdebtfrompreviousdegrees. Thisyeartuition

supporting research andinnovation, investing in canadians

fundingforresearchandgraduatestudie

s

19

figure 5.1: graduate enrolment

200,000

175,000

150,000

125,000

100,000

75,000

50,000

25,000

0

1998

2000

2002

2004

2006

2008

$8,000

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$0

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

figure 5.2: graduate tuition

fees compared to inflation

actuaL tuItIoN Fees

INFLatIoN


24/30


fees for graduate students increased by 6.6

percent,toover$6,400(Figure5.2onprevious

page), an increase that is nearly 50 percent

larger than increases in undergraduate tuition

fees,andalmostfourtimestherateofination.

espite theirsignicantinvestmentof timeand

money, a recent study indicated that doctoral

graduates earn little moreand in some

instances lessthan thosewith onlya mastersdegree.

CommerCialisation of researCh

Thedrive tocommercialise university research

has a number of negative consequences.

As jobs in government research facilities are

becoming increasingly scarce, and universities

are replacing tenure-track professors with

contractsta,graduatesarehavingahardertime

ndingemploymentintheireld.

ntroducing commercialisation into university

research discourages corporate investment in

theirownresearchfacilities,whichleadstofewer

employment opportunities for researchers in

analreadydicultjobmarket.Theresultofthis

restructuringis thatmany highly-skilledworkers

areunabletocontributetotheirfullpotential.

Federal fundinggeared towardsmarketdriven

researchprogramshas resulted in the privatesectorrelyingonpublicuniversitiesforresearch

and development to an unhealthy degree,

thus undermining long-term innovation. This

corporatesubsidycontributesdirectlytoCanada

laggingbehindpeer countries inprivate-sector

investment in research and development and

theproductsthoselabsproduce.

Canadahasconsistentlyrankedlowonindexes

that measure innovation. TheWorld Economic

Forums annual competitiveness report again

ranked Canada poorly with regards to most

measures of innovation this year. espite

being placed seventh for university-industry

collaboration and eighth for the quality of

scientic researchinstitutions,Canada achieves

a poorgrade based largelyon lackingprivate

sector investment. Canada ranked fourteenth

for innovation in the report, behind the

United States, Japan, ermany, Sweden and

Switzerland,amongstothers.

As this trend deepens,privatesectorresearch

anddevelopmentinfrastructureisgivingwayto

a publicly-backed university system that does

not have a consistent track-recordof bringing

innovationstothemarketplace.

Sincethelate1990s,anumberofinitiativeshave

been undertaken to transform public university

figure 5.4: return on investment

in commercialisation

(In millions of dollars)

figure 5.3 phd graduates

(Number of PhD graduates per 100,000 people, aged 25-29)

800

700

600

500

400

300

200

1000

swedeN

swItzeRLaNd

FINLaNd

geRmaNY

u.K.

austRIa

austRaLIa

NoRwaY

NetheRLaNds

IReLaNd

deNmaRK

ItaLY

u.s.

beLgIum

FRaNce

JapaN

caNada

$50

$40

$30

$20

$10

2003 2004 2006 2007

The failure to fundworld-class universitiesis one explanation forCanadas comparativeweaknesses inhigh-level academicachievementandits associatedweaknesses ininnovation.

ConferenCeBoard of Canadaein n skillRr cr

speNdIN

RetuRN oN INestmeNt


25/30


fundingforresearchandgraduatestudie

s

21

infrastructuretomeetthegovernmentscommercialisationobjectives,

such as requiring publicly funded research to seek direct, private-

sectorinvestment.

Commercialised university research is geared towards producing

products that canyieldshorttermresults,withlittleconsideration to

long-terminnovation.As researchfunding isincreasingly directed in

thisway,basicresearchandlong-terminnovationareundermined.

Recentincreasesinfundingforthefederalresearchgrantingcouncils,

especially those resources dedicated to graduate students, have

disproportionately benetedapplied researchprogrammes that are

designedto pursuea commercialisedagendaoverbasic,curiosity-

drivenresearch.

Theencroachmentoftheprivatesectorintouniversitiesundermines

the independence of the academy, since money for research is

increasingly tied to entities outside the normal academic program.

Thesecorporationscanwieldpoweroverdecisionsthatarenormally

left tothe research community, such as investment inmaintenance,

researchfacilitiesornewbuildings.Theresearchcommunitycanalso

comeunderpressurefromprivateintereststhatfundresearchtonot

report resultsthatareagainstthe economicinterestsof theprivate

fundingsource.espitethefactthattheshifttoanincreasinglyprivate

funding model threatens the independence of university research,

there iscurrentlynowhistle-blowerprotectionfor graduatestudents

whowishtoreportresearchmisconduct.

graduate student funding

Althoughinrecentyearstherehavebeensmallincreasestofunding

forthegrantingcouncils,theyhaveneverfullyrecoveredfromthecuts

ofthe1990s.espitethefactthatfundinghasfailedtokeeppacewith

therisingenrolmentof graduatestudents,the 2009 federalbudget

cut$148millionfromthegrantingcouncils.Thiscameatatimewhen

most countries were investing heavily in their university research

capacity.

Funding for discovery-type grants in the social sciences and

humanitieslagsfarbehindtheappliedsciences.Withoutproperlevels

offundingandsupportforgraduatestudents,Canadasresearchand

innovationcapacitywillcontinuetofallbehindthatofothercountries.

Aninvestmentingraduatestudentswillhelpproducethehighlyskilled

workersthatCanadaneedstocompeteintheglobaleconomy.

Students often enter graduateprogramswith substantialdebt from

their previousdegree. However, there arecurrently noneed-based

grants available tograduatestudents fromthe federal government.

Students from lower income families have a harder time aording

graduatestudieswithouttheneed-basedgrantsthattheywouldhave

hadaccessto in theirundergraduatedegrees. n theabsenceofa

grantsprogram,Canadawillcontinuetolosethemosthighlyqualied

people to the labour market before they nish their trainingbased

purelyonindividualnances.

Canada raduate Scholarships (CS) provide merit-based funding

directly to graduate students. These scholarships are administered

throughthegrantingcouncilsandare oneof themainmechanismsforthefederalgovernmenttograduatestudies.Thelimitednumberof

scholarshipsavailablehasmeantthatmanyofthebestandbrightest

researchers are unable to maximise their potential. ncreasing the

numberofCSswouldhelppromotegraduateresearchandensure

thatgraduatestudentshavetheresourcestofocusontheirresearch,

whichwillpaylong-termdividendsforCanadasresearchcapacityand

innovation.

recommendation 5Increase the number of CanadaGraduate Scholarships to 3,000 consistent with average growthin the program since 2003 to bedistributed proportionally amongthe research councils according toenrolment gures.


26/30


With anannualinvestmentof$2.7billion, and theadoptionofapost-secondary educationact, the federalgovernmentcanstoptheshifttowardsaprivatiseduser-paymodel.nvestinginpost-secondaryeducationisnotanoption,butanecessity.twouldpaysubstantialdividendsfortheeconomyandensurethateveryoneinCanada,includingAboriginalpeoples,canbenetfromhighereducation.

post-secondary education:a necessary investment

Creation of new Pse transfer

inCrease to Pse transfer

addressing deferred maintenanCe

reduCe tuition fees to 1992 levels

inCrease funding for aBoriginal eduCation

Clear BaCklog of funding for aBoriginal eduCation

inCrease funding to statistiCs Canada Centre for eduCation statistiCs

inCrease the numBer of Canada graduate sCholarshiPs to 3000

inCrease in grants (less savings from eliminated tax Credits and savings sChemes)

cost of proposals

$ 2,697

$ 0

$ 410

$ 1,000

$ 799

$ 245

$ 208

$ 10

$ 25

$ 0

note 1

note 2

note 3

(amountsinmillions)

AMUTTCREASET$1.59BLLEARTW,A2.39BLLEARTHREE,AFREEREARTHEREAFTER

FUTREMAAT$1BLLPEREARFRFEEARS

ETMECST

note 2

note 3

note 1


27/30


u adg...

National Ofce Bureau national

338 rue SomersetStreetWest /Ouest

Ottawa,Ontario

K2P 0J9

(613)232-7394

www.cfs-fcee.ca

Public Risk Private GainAn introduction to thecommercialisation ofuniversity research

2009

National Graduate Caucus

Canadian Federation of Students

a Primer on theCommerCialisation ofuniversity researCh

Strategy for Change:

MoneyDoes Matter

An alternative for accessible, high-qualitypost-secondary education

Ca na d ia n F e de r a t i on o f S tude n t s

O c tobe r 2 007

strategy for Change:an alternative ProPosal forstudent finanCial assistanCe

effeCts of tuition feeshugh mCkenziewww.f.n.

FUNDING

FOR

POST-

SECONDARY

EDUCATION

faCt sheet: funding for Post-seCondary eduCation

Fall 2009

Canadi an Feder ati on of S tudentswww.cfs-fcee.ca

about post-secondary educationthe factsLocalSection1281

BackgroundAsdenedbythe federalgovernmentsDepartmentofFinance,taxexpendituresincludeexemptions,deductions,rebates,deferralsandcreditsthat servetoadvancea widerangeofeconomic, social,environmental,culturalandotherpublicpolicyobjectives.

Sincethemid-1990s, federalgovernmentshaveincreasinglyfavouredtaxexpendituresoverdirectly allocatedstudentnancialassistance.Intotal,federaltaxexpendituresforpost-secondarystudentshavegrownfrom$566millionin1996tomorethan $2.4billionin2009.1 Thisrepresentsa431%increaseandmorethanseventimestheamountthefederalgovernmentsgrantingprogramwilldistributeinstudentnancialaid.

Thecollectionof taxexpendituresofferedbythefederalgovernmentforpost-secondaryeducationfallintotwocategories:tax creditsforexpensesthathavealreadybeenincurred;andtaxdeductiblesavings planstobe usedforfutureeducationcosts.

EducationTaxCredit:Studentsmayclaima 16%taxcreditfortheaccruededucation amount.Theeducationamountisequalto thenumberofmonths enrolledinpost-secondaryeducationmultipliedby$400for full-timestudentsand$120forpart-timestudents.

TuitionFeeTaxCredit:Studentsmayclaima 16%taxcreditfortuitionfees andancillaryfeespaid.I n1987,itbecamepossibletotransfer thiscreditto aspouse,parent,orgrandparent.Asof1997, thiscreditmaybe carriedforwardforapplicationinfuture taxreturns.

StudentLoanInterestTaxCredit: Studentsmayclaima16%tax creditfortheinterest paidinayear duringrepaymentofaCanadaStudent Loanandprovincialstudentloan.

TextbookTaxCredit:Studentsmayclaima 16%taxcreditfortheassignedtextbook amount.Theamountisequal

thenumberofmonths enrolledinpost-secondaryeducationmultipliedby$65for full-timestudentsand$20for full-timestudents.

Scholarship,fellowshipandbursarytaxcredit: allamountsreceivedforpost-secondarysc holarships,fellowshipsandbursariesexemptfromtax, wheretheseamountsarereceivedinconnectionwith enrolmentinaprogramforwhichthe studentcanclaimthe educationtaxcredit

RegisteredEducationSavingsPlans:ContributionstoRegisteredEducationSavingsPlans(RESPs)grow tax-freeuntilthetimethatthey arewithdrawn,atwhichpointthe savedamountistaxableasincome forthebeneciary.Formoreinformation,seetheCanadianFederationofStudentsfactsheetontheRESPprogramatwww.cfs-fcee.ca.

Allofthepost-secondary taxcreditscanbeused eitherbythestudentortransferredtoa familymember.RegisteredEducationSavingPlansare,in thevast

majorityofcases, establishedbyparentsfor theirchildrensfutureeducationcosts.

APoorApproachto ReducingStudentDebtThenon-refundableeducationandtuitionfees taxcreditshavebeenthemost widelyusedandexpensivefederaltaxmeasuresforpost-secondaryeducation.In the2007taxyear,themostrecenty earforwhichstatistics areavailable,2,688,240claimswereledfor theeducation,tuitionfeeandstudentloaninterestcredits,costing thefederalgovernmentalmost$1.8billionin foregonetaxrevenue. 2

Thismassivepublicexpenditure,if offeredasupfrontgrants,couldhavealmost eliminatedtheneedforstudentstoborrow.For example,theCanadaStudentLoansProgramexpectstolendroughly $2.2billionduringthe 2009-10academicyear.3 Inotherwords,if theamountof moneythefederalgovernmentspentoneducationrelatedtax creditsthisyearhadbeen shiftedtothefront-endin theformofgrantsthrought heCanadaStudentGrantsProgram,

Post-Secondary Education Tax CreditsBillions in Misdirected Financial Aid

Tax CreditsTransferredtoHigh Income Earners

$432M

Low-and Middle-IncomeCanadaStudent Grants

Figure 1. Each year, the federalgovernmentspends more oneducation related taxbreaks forfamilies earning over$70,000

than itdoes on needs based grants.

$345M

faCt sheet: Post-seCondaryeduCation tax Credits

Fa ll 2 0 0 9

Ca n a d ia n Fed era t io n o f S t u d en t s

w w w .cf s- f cee.ca

about post-secondary educationfactsLocalSection1281

the

Student Employment

IntroductionEmploymentisanimportantsourceofincomeforstudents.AccordingtoStatisticsCanada,incomefromemploymentheldduringthecurrentacademicyearwasthesecondmostcommonlyusedsourceoffundingafterpersonalsavings.Infact,63%ofstudentsage20-24 reliedonemploymenttonancetheireducationandover25%citedincomefromcurrentemploymentastheirmostimportantsourceoffunding.1

Althoughthereareseveralreasonsthatstudentsareincreasinglycombiningworkwithschool,rapidlyincreasingtuitionfeesaremostlikelythebiggestfactor.UndergraduatetuitionfeesinCanadahaveincreasedalmost300%fromanaverageof$1,706in1991-92 to$4,917in2009-10.2 Internationalstudentsareoftenchargedtuitionfeesofupto$15,000per year,andsomeprofessionalstudentsinexcessof$25,000.Tuitionfeeshavegrowntobecomethesinglelargestexpenseformostpost-secondarystudents.

The2006CollegeStudentSurvey(CSS)askedCanadiancollegestudentswhytheyworked.Amajoritysaidthattheyworkedtopayfornecessitieswhileanother10percentsaidtheyworkedtopayforschoolorschool-relateddebt.Today,oneinfourcollegeanduniversitystudentsdependonworkingtomakeendsmeet.

WorkingduringstudiesDuringthe2008-09year,48%offull-timestudentsbetweentheagesof20and 24workedduringtheschoolyear,comparedtojust26.6%oftheircounterpartsin1976. 4Part-timestudentsworkedevenmore,with91%ofthosebetweentheagesof20-29beingemployedduringthecourseoftheirdegree.5 Thenumberoffull-timestudentsworkingmorethan35hoursperweekhasalmostdoubledoverthepasttwodecades.6

Full-timestudentswhoworkdosoanaverageof15hoursperweek,whilepart-timestudentsworkmorethan30hoursperweek.Overthecourseoftheirdegreeanincreasingnumberofstudentsrelyonemployment,withover50%morestudentsworkingduringthelastyearoftheirdegreethantheirrst.7

Femalestudentsreportworkingmorethantheirmalecounterparts.In2008,femalestudentswere25%morelikelytobeemployedduringtheacademicyear.8

WorkandAcademicSuccessStudieshavefoundthatworkingasignicantnumberofhours(over20perweek)whileinschoolhasa negativeimpactonacademicsuccess.Roughly60%ofuniversitystudentswhoworkedduringtheyearreportedthatithadanegativeimpactontheiracademicperformance.Oneinfourofthesestudentsratedt heimpactassignicant. 9,10

Workingduringtheyearalsodecreasesastudentslikelihoodofnishingtheirdegree.StatisticsCanadasYouthinTransitionstudyfoundthat,workingatallandworkingmorehoursbothhaveanegativeeffectonpersistence.11

Whileemploymentcanhelpastudentgainworkexperienceandpayforexpenses,studentswhoworkover20hoursaweekandrelyon employmenttopayfortheincreasingcostoftheireducationndthemselvesatadisadvantage.Astuitionfeesandothercostscontinuetorise,moreandmorestudentsarendinglittlechoicebuttotakeonmorework.

SummerEmploymentInsummer2009studentunemploymentrosetoover20%,thesecondhighestrateeverrecorded.Thecombinationofstudentshavinglesssavingsfromsummerwork,familyssavingsandincomebeingdiminishedasaresultoftheeconomicdownturnandstudentsfacinghighertuitionfeesthaneverbeforehasresultedinone-thirdofcollegeand

universitystudentssayingtheywillrunoutofmoneybytheendofthe Fallsemester.12

Morethan4in10 studentsrelyonearningsfromsummeremploymenttopayfortheirtuitionfeesandlivingcosts.Forthesestudents,savingsfromsummerworkaccountforoverone-thirdoftheirmoneyfortheyear.

TheSummerCanadaCareerPlacementProgramTheSummerCareerPlacementProgramwascreatedbythefederalgovernmentinthemid-ninetiestohelpstudentsndsummeremploymentandgetcareer-buildingworkexperience.TheProgramisa partnershipbetweenemployersandthefederalgovernmentinwhichthegovernmentsubsidisesprivate,publicandnon-protemployerstohirestudentsoverthesummer.In1996,astudydonebythegovernmentfoundthatnearly7in 10participatingemployerswouldnothavehireda studentwithouttheprogram,whichindicatesthattheprogramcreatedsummeremploymentforover50,000students.

faCt sheet: studentemPloyment

CANADAPOST-SECONDARYEDUCATIONACT

BILL C-X

AnAct relatingtopost-secondaryeducationob-jectivesandto cashcontributionsby Canadainrespectof post-secondaryeducationunderprovincialadministrationandtoamendcertainActsin consequencethereof.

LOI CANADIENNESURLENSEIGNEMENT

POSTSECONDAIRE

PROJET DE LOI C-X

Loiconcernant lesobjectifs delenseignementpostsecondaireetlescontributionspcuniairesversesparle Canadaautitre delenseigne-ment postsecondaire de comptence pro-vinciale et modifiant dautres lois en con-squence.

Asproposed bythe CanadianAssociationofUniversity Teachers

2007

Propospar lAssociationcanadiennedesprofesseureset professeursduniversit

2007

Post-seCondary eduCation aCtCanadian assoCiation of universityteaCherswww../l/-2007.f

TUITION

FEES

IN

CANADA

CANADIAN FEDERATION OF STUDENTS

faCt sheet: tuition fees

costingofrecoMMendatio

nsandfurther

reading

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publications of the canadian federation of studentsAll publications are available for download at www.cfs-fcee.ca

related publications



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ActuarialReportnTheCanadaStudentLoansProgram.ceoftheChiefActuary,Ministerof PublicWorksandovernmentServices,overnmentofCanada(2009).

AlmanacofPost-SecondaryEducationinCanada.CanadianAssociationofUniversityTeachers(2008).

Alternative Federal Budget, Canadian Centre for PolicyAlternatives (2010).BertWaslander. Focusing ndian andorthern Aairs CanadasPost Secondary EducationProgram:Targetsandmpacts.AssemblyofFirstations,(2009).

Callender,Claire&JonJackson.FearofebtandHigherEducationParticipation.:UniversitiesU(2003).

CensusofPopulation.StatisticsCanada(2006).

avies,P.,Slack,.,Hughes,A.,Mangan,J.andigurs,.nowingWheretoStudy?Fees,BursariesandFairAccess.,StaordshireUniversityandSuttonTrust(2008).

rolet,Marie.ParticipationinPost-secondaryEducationinCanada:Has theRoleofParentalncomeandEducationChanged over the 1990s? Business and Labour MarketAnalysis,StatisticsCanada(2005).

Education at a lance. rganisation for Economic Co-perationandevelopment(2010).

TheEectofncreasingAboriginalEducationalAttainmentontheLabourForce,utputandtheFiscalBalance.CenterfortheStudyofLivingStandards(2009).

Evaluation of the Post-Secondary Education Program:Regina.,ndianandorthernAairsCanada(2005).

Facts and Figures. atural Sciences and EngineeringResearchCouncil(2007).

Formative Evaluation of the Post-Secondary EducationProgram.ndianandorthernAairsCanada(2010).

The lobal Competitiveness Report 20102011. WorldEconomicForum(2010).

Hankivsky,lenaCostEstimatesofroppingutofHighSchoolinCanada.CanadianCouncilonLearning(2008).

How is the downturn impacting Canadian universitystudents?, PriceWaterhouseCoopers (2009).Hull, JeremyPost-SecondaryEducationand LabourMarketutcomesCanada.ndianandorthernAairsCanada(2005).

Thempact ofBursaries: ebt and Student Persistencein Post-Secondary Education., Canada MillenniumScholarshipFoundation(2006).

anniainen,Takalo,Tuomasand esa. o patents slowdowntechnologicalprogress?Realoptionsin re-search,patenting,andmarketintroduction.nternationalJournalofndustrialrganization18(2000).

wong, Je. halla, rfan. Streiner, A. Baddour, avid,.Waddell,Ralph.Johnson,an.Eectsofrisingtuitionfeesonmedicalschoolclasscompositionandnancialoutlook.CMAJ166(8),UniversityofToronto,.(2002).

LabourForcenformation.LabourForceSurveyProgram,StatisticsCanada(2010).

Peng,Amy.ang,Ling.ividingTimeBetweenWorkandStudy:Are Tuition Fees a Factor? Canadian Journal ofHigher Education Revue canadienne denseignementsuprieurolume40,o.1,13-29(2010).

Mackenzie, Hugh. Funding Postsecondary Educationnntario:Beyond The Path fLeastResistance., ThentarioCoalitionforPostsecondaryEducation(2004).

Mandelson, Michael. Aboriginal Peoples and Post-Secondary Education in Canada. Caledon nstitute of

SocialPolicy(2006).Money,Jobs,andFear:TuitionreportfromtheBAstudentdivision.ntarioBarAssociation(2003).

oHigherPriority:AboriginalPost-SecondaryEducationnCanada.ReportoftheStandingCommitteeonAboriginalAairs and orthern evelopment, 39th Parliament, 1stSession(2007).

PerceptionsofFirstationsResidentsn-Reserve.ES:ttawa,ESResearchAssociatesnc.(2006).

RedeningHowSuccessisMeasuredinFirstations,nuitandMtisLearning,ReportonLearninginCanada2007,CanadianCouncilonLearning(2007).

Report Card onCanada. Conference Board of Canada(2010).Stresseduniversitystudentssayworkingparttimeaectsgrades,RoyalBankofCanada(2010).

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ReportonStudentebt.CanadianCollegeStudentSurveyandCanadianUndergraduateSurveyConsortium(2007).

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