According to a report released last month by the Canadian Centre for Policy Alternatives (CCPA), since 1990, the average tuition and compulsory fees have risen 6.2% annually – that’s thrice the rate of inflation. The report further reveals a wide range of tuition costs ranging from $2861 in Newfoundland and Labrador and $3278 in Quebec to $7061 in Alberta and $7513 in Ontario. At its current rate, tuition is projected to hit $9231 in Ontario in the next four years. Insufficient public investments have magnified debt loads for students and families as they are forced to bear the deficits when tuition and other fees increase, often in excess of the cost of living. This brings into the cost vs. value debate into the spotlight.
Students, particularly among low income families, are dissuaded from pursuing higher education when faced with costs exceeding $5000. Statistics Canada reports only 31% of youth from families in the bottom quartile of income distribution enroll in universities by age 19 compared to 50.2% for youths from families in the top quartile. What’s maddening is that media, governments, and university administrators falsely assume that as long as enrollments increase, fees are a non-deterrent. However, this is in fact due to the current reality that a degree is necessary to get a decent job. Such assumptions mask the true reason behind tuition hikes – diminishing public funding.
Provincial education spending has declined for the most part and has failed to buffer the surge in enrollments. From 1979 – 2009, government funding has drastically decreased from “84% to 58% while the proportion funded by student paid tuition has increased from 12% to 35%.” As student fees substitute the declining government investment, debt has increased as well. Presently, the average debt incurred by an undergraduate degree – for about 60% of Canadian students – is about $27, 000. Graduating with such a huge short fall has adverse effects such as decreasing likelihood of home ownership, slower wealth accumulation, and even negative psychological effects such as depression. In order to put things into perspective, CCPA devised a measurement scheme called the Cost of Learning Index which evaluates how much more (or less) affordable a university education is with the aim to compare provincial policies and spur pro-active government action.
The Index illustrates that currently, Newfoundland and Labrador is the most affordable province for university education with Nova Scotia being the least affordable for median-income families (with Ontario finishing closely behind) while Ontario was deemed to be the least affordable for families on the poverty line. Unsurprisingly, Ontario has consistently ranked amongst the highest-tuition-charging provinces. As a countermeasure, in 2011, the government introduced a “30% Tuition Rebate”; despite this, CCPA indicates that the rebate barely improves the province’s standing, especially for low income families, since fees were already high to begin with. Such programs are examples of increasingly passive approaches that most governments are taking.
Rather than choosing to lower costs upfront, most governments opt for after-the-fact financial assistance in the form of debt relief, loans forgiveness, tax credits and zero interest. These policies have ulterior motives – serving as buzz worthy highlights during election campaigns in addition to allowing for stealthier cancellations. Even though such programs may alleviate the debt burden for qualified students, it fails to assist them in paying the up-front costs. As stated by Erika Shaker, director of the CCPA’s education project, “you can’t pay your university bill with a tax credit.”
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