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fe tio fe u an ud n f Ca n pu d fo e p fo f n ucts io C n f de anuc de n n f pu pu d s tio b n enti
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c e e n r a f l b t t u o n r t t a d l a s
a at ra fo ra tio dia ts t di st ic at th li he th r t io bl f s ad ths p dia ion tior t er ic ic ti bli fo gode
d io t r t n n h a u e io e c e h n ic u h a e g o c r r
p ia n io th io f f pu e p n d d n pu g pu p e f e tu ian e p b n f fo n e ti du oo n e t od
u n f n e u u o l o o h
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u lic e r f pu f t e ic l e s at r ic d ic li bl t c n ed l e e th s b o t C s c p
Canadian
Federation
of Students
338 Somerset Street West
Ottawa, Ontario K2P 0J9
Tel: (613) 232 7394
Fax: (613) 232 0276
E-mail: info@cfs-fcee.ca
Web: www.cfs-fcee.ca
This report is available in digital
form on the Federation’s website at
www.cfs-fcee.ca/
Ce rapport est également
disponible en françcais.

The Federation is thankful to the following photographers whose

works were used under a Creative Commons license in this document:
• Francois de Halleux • Jon Erickson
• Cheryl Maze Walker • University of British
• Jeremy Wilburn Columbia Library
The Canadian Federation of Students
With over 600,000 members, represented by more than 80 students’ unions in all ten provinces, the
Canadian Federation of Students is the voice of post-secondary students in Canada. The Federation and
its predecessor organisations have represented students in Canada since 1927. The Federation represents
students at the college, undergraduate, and graduate level, and students who study both part and full-time.

British Prairies Ontario Ontario Ontario Maritimes Newfoundland

Columbia Alberta College of Art Algoma University (cont’d) (cont’d) Cape Breton University & Labrador
University of British and Design Students’ Students’ Union Nipissing University Trent University Students’ Union Grenfell College Student
Columbia Students’ Association Brock University Student Union Graduate Student Holland College Student Union
Union Okanagan Brandon University Graduate Students’ Association Union Marine Institute
Ontario College of Art
Camosun College Students’ Union Association and Design Student University of Western University of King’s Students’ Union
Student Society Graduate Students’ Carleton University Union Ontario Society of College Students’ Union Memorial University of
Capilano Students’ Association of the Students’ Association Student Federation of Graduate Students Mount Saint Vincent Newfoundland Students’
Union University of Calgary Carleton University the University of Ottawa Wilfrid Laurier University University Students’ Union
Douglas Students’ Union First Nations University Graduate Students’ Graduate Students’ Graduate Students’ Union Graduate Students’
of Canada Students’ Association Association des Association University of New Union of the Memorial
Emily Carr Students’ Association University of
Union Association étudiante de étudiant(e)s diplômé(e)s University of Windsor Brunswick Graduate
University of Manitoba la Cité collégiale de l’Université d’Ottawa Students’ Alliance Students’ Association Newfoundland
Kwantlen Student Students’ Union College of the North
Association Student Association of Queen’s University University of Windsor Student Union of
University of Manitoba George Brown College Society of Graduate and Graduate Students’ NSCAD University Atlantic Students’ Union
College of New Graduate Students’ Professional Students Society
Caledonia Students’ Glendon College University of Prince
Association Student Union Ryerson Students’ University of Windsor Edward Island Student
Union
University of Regina University of Guelph Union Organization of Part-time Union
North Island Students’ Students’ Union Universitvy Students
Union Central Student Continuing Education University of Prince
Association étudiante du Association Students’ Association of York Federation of Edward Island Graduate
Northwest Community Collège universitaire de Ryerson Students Student Association
College Students’ Union University of Guelph
Saint-Boniface Graduate Students’ Saint Paul University York University Graduate Association générale
Okanagan College University of Association Students’ Association Students’ Association des étudiants de
Students’ Union Saskatchewan Students’ l’Université Sainte-Anne
Lakehead University University of Toronto at
College of the Rockies Union Student Union Scarborough Campus
Students’ Union University of Students’ Union Québec
Laurentian Association
Selkirk College Saskatchewan Graduate of Mature and Part-time University of Toronto Concordia Student
Students’ Union Students’ Association Students Graduate Students’ Union
Simon Fraser Student University of Winnipeg Laurentian University Union Concordia University
Society Students’ Association Graduate Students’ University of Toronto Graduate Students
Association Students’ Union Association
Students’ Union of
Vancouver Community Laurentian University University of Toronto at Dawson Student Union
College Students’ General Mississauga Students’ Post-Graduate Students’
Thompson Rivers Association Union Society of McGill
University Students’ Association des Association of Part-Time University
Union étudiantes et étudiants Undergraduate Students
Vancouver Island francophones de of the University of
University Students’ l’Université Laurentienne Toronto
Union McMaster University Trent Central Student
University of Victoria Graduate Students’ Association
Students’ Society Association
Table of
contents
1 Introduction
2 Students working
3 Public opinion polling
5 Recommendations
6 Canada’s post-secondary education System
13 Education statistics
14 Student Debt in canada
16 Aboriginal Education
19 Research and Graduate Studies
22 Costing of recommendations
23 Further Reading
24 References

Public education
for the public good
investing in post-secondary education is essential
to future economic success and social equality
While Canada has begun to show signs of recovery from the
recession, the global recovery appears increasingly shaky.
In Canada and around the world, millions of the people who
lost their jobs are still unemployed and the job market in the
United States, Canada’s largest trading partner, still shows few
signs of recovery.
Following the large loss of manufacturing and other jobs
during the recession, many Canadians returned to school for
education and retraining. Combined with a large cohort of
high school graduates, this has produced the largest class of
post-secondary students in Canada’s history. While students
continue to enrol in higher education, saddling a generation
with billions of dollars in debt will have far reaching implications
for Canada’s economy and socio-economic equality.
This massive student cohort reflects the new economic reality:
a highly educated workforce is the foundation of Canada’s
economy. While the recession saw a major downturn in
Canada’s manufacturing sector, the importance of a highly
skilled workforce reflects a change that has been underway
for the past two decades.
With a highly educated workforce and a relatively stable
economy compared to other OECD countries, Canada is
positioned to emerge from the global recession in a stronger
position than other Western nations. However, record-high
levels of student debt and a post-secondary education
Canadian federation of students a national vision for post-secondary education
Introduction - Public education for the public good
system that is increasingly out of reach for ordinary Canadians
threatens Canada’s long-term economic prosperity.
In the absence of a national strategy for post-secondary
education divergent paths have emerged between the
provinces’ post-secondary education systems. Across the
country, students bear significantly different burdens for
pursuing higher education. This disparity threatens Canada’s
long-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 and
prevented from achieving their potential.
Following two decades of declining public funding, Canada’s
colleges and universities are seriously underfunded. Class
sizes have increased significantly, while needed repairs to
infrastructure have gone unaddressed. Tuition fees have
grown more than four-fold over the past two decades, causing
average student debt to increase to over $25,000.
Taking advantage of Canada’s current relative economic
strength, compared to other industrialised nations, requires
leadership at the federal level and a substantial reinvestment
in students and colleges and universities. This document
outlines five recommendations for the federal government
to implement in order to build and maintain a strong post-
secondary system that trains a workforce capable of
competing in the twenty-first century.
1
high fees push students to
work more, study less
Students are struggling to afford their
post-secondary education more than any Student Substantially Students say
unemployment more students working
previous generation. Record high tuition fees
remained high today work Has a negative
combined with the recession have taken a this past summer during the effect on academic
heavy toll on students and their families, school year performance
with the worst of it borne by vulnerable
groups including those with disabilities, and
racialised and Aboriginal peoples. Rapidly 25% 50% 75%

increasing student costs and a lower than 20% 40% 60%

average availability of summer work have
contributed to an increasing number of 15% 30% 45%

students working during the school year. 10% 20% 30%

Research has found that working while
5% 10% 15%
in school can have a negative effect
on a student’s academic performance, 0% 0% 0%
2008 2009 2010 1976 2008 Yes No
particularly when the student is working
Percent of students who were Percent of students who Students who were asked if
more than 20 hours per week, an occurrence unemployed during the summer worked during the year, while they thought working had a
that is becoming much more common. attending university negative effect on academic
performance

2 Public education, for the public good Canadian federation of students

Canadians want

Students working and public opinion polling

leadership
The quality of education has
suffered because of inadequate
government funding
It is more difficult today to get a A majority
of Canadians
university or college education
than it was ten years ago

Agree - 51%
Disagree - 33%
Agree - 50%
Disagree - 36%
believe that:
No opinion No opinion
• a university or college education
is more important than ever to get
by in today’s society;
• the federal government should
Should tuition fees What is the most important thing attach conditions to transfer
be increased, frozen for government to do for college payments to the provinces;
or reduced? and university education?
• the government should invest
50% 50%
Reduced - 35%
Lower tuition fees
and student debt - 48% more in post-secondary education,
40% Frozen - 44% 40% Create more spaces for
qualified students - 21%
even if it means they have to pay
Increased - 15%
30% 30% Reduce class sizes by hiring
more professors - 14%
a little more in taxes;
20% 20%
Invest more in research - 11%
• the government should invest in
10% 10%
making college or university more
affordable, even if it means a
0% 0%
small increase in taxes; and

67%
• a university or college education
Want the federal government to set conditions on transfer should be provided free for
payments to ensure that provinces use the money as
intended. everyone who can’t afford it.

59% Think governments are not doing enough to make sure that
everyone who is qualified has a chance to get a university or
college education.
Results are taken from a Harris/Decima random telephone survey of 2,000 adult Canadians
conducted between April 8 and April 19, 2010. The poll was commissioned by the Canadian
Association of University Teachers and the Canadian Federation of Students. National results

79%
are considered accurate within 2.2 percentage points, 19 times out of 20.
Are against increases in tuition fees, with 35% supporting
a reduction from current levels.
Canadian
Canadian federation
federation of students a
of students a national
national vision
vision for
for post-secondary
post-secondary education
education 3
 Recommendations
Recommendations
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-Secondary
Education Act modeled after the principles of the Canada Health 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 to 1992 levels; and
• Over five years, eliminate deferred maintenance at Canada’s colleges and universities.

Track success: measure results

Increase funding by $10 million to Statistics Canada’s 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 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.

Meet Canada’s obligations: fund Aboriginal education

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

Foster innovation: funding for research and graduate studies

Increase the number of Canada Graduate Scholarships to 3,000 – consistent with average growth in
the program since 2003 – to be distributed proportionally among the research councils according to
enrolment figures.

Canadian federation of students a national vision for post-secondary education 5

Canada’s post-secondary
education system
For over one-half century, the federal
government has recognised the crucial role
post-secondary education plays in driving
economic growth and innovation, and
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 remarkably less public
over the last two decades. Beginning in
the 1980s, the federal government limited
increases in transfers to the provinces
for post-secondary education, effectively
decreasing per-student funding. In 1995,
the federal government made one of the
deepest funding cuts in history, slashing
transfers to the provinces for social
programs by $7 billion. In every province,
with the exception of Québec, this funding
cut was passed directly on to students and
their families in the form of massive tuition
fee increases.
Despite the federal government posting
multi-billion dollar surpluses for over
a decade, funding for post-secondary
education was not restored.
These cuts triggered provinces to spend
less on higher education, and paved the
way for a dramatic shift towards private
funding as the primary 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.
Almost half of the operational funding for
universities today comes from students
themselves.
Prior to these cuts, access to post-
secondary education was similar from
province to province. Today, tuition fees
vary widely, making geography one of
the largest factors in determining whether
an individual can afford to obtain a post-
secondary credential.
In order to reduce inequalities across socio-
economic groups and regional disparities,
and increase the country’s competitiveness
internationally, the federal government
must once again prioritise affordable, high-
quality post-secondary education.

Government spending:
a question of priorities
Canadians overwhelmingly believe that
the federal government must provide more
support to the post-secondary education. While
Canada’s social programs are often treated
as expendable, funding such programs is a
necessity in order for Canada to maintain its
standard of living and preserve the stability of
our economy.
The federal government posted an $18.1 billion
surplus in the year 2000. By 2009 that surplus
had turned into a multi-billion dollar deficit.
While a large part of the deficit can be attributed
to a downturn in the economy and short-term
stimulus spending, Parliamentary Budget
Officer Kevin Page projects that Canada has a
structural deficit that, without corrective action,
will continue after Canada’s economy has
rebounded and stimulus spending has wound
down.
Current funding priorities, and a fiscal capacity
that has been reduced by multi-billion dollar
tax cuts, undermine the federal government’s
ability to afford to adequately retrain of out-of-
work Canadians and train the country’s future
workforce.
Investments in social programs, such as
health care and post-secondary education,
continuously rank as top priorities for
Canadians. In a recent poll conducted by Harris-
Decima, only 8 percent of Canadians identified
tax cuts, and 12 percent deficit reduction, as
Canadian federation of students a national vision for post-secondary education
Canada’s post-secondary education system
the most important priority for the federal
government. By comparison, over 60 percent
$13.7billion
Annual cost to the
identified investments in social programs, government of
reducing unemployment, or reducing poverty planned corporate
tax cuts by 2013
as their top priority. Despite this, the federal
60%
government has prioritised tax cuts and deficit
reduction over needed investments in Canada’s
ailing social programs.
of Canadians believe that
Significant reductions in Canada’s corporate investments in social
tax rate, brought in during recent years with programs and reducing
the ostensible goal of encouraging investment, poverty and unemployment
have failed to place Canada in a position of are higher priorities than tax
cuts and deficit reduction.
significant economic advantage.
In a recent report, the World Economic Forum
placed Canada in the middle of the pack for There is... not enough
investment climate. The report rated the impact revenue to pay for
that the level of taxation has on investment. the programs and
Canada experienced only a slight increase in its services Canadians
rating, compared to two years earlier, when the
most recent round of corporate tax cuts were
cherish most; but that,
beginning to be phased in. Cutting corporate is a political problem
tax rates is clearly an ineffective mechanism rooted in years of tax
to increase investment. This policy has failed cuts for corporations
to pay sufficient dividends to justify its massive and the wealthy.
cost.
Providing adequate funding for post-secondary Canadian Centre
education is well within the government’s reach, for Policy
Alternatives
and will do far more to guarantee Canada’s Alternative Federal
future economic success than reducing the Budget 2010
government’s fiscal capacity through ineffective
tax cuts.
7
 Fees are a barrier: Let the
income tax system do its job
Tuition and other fees
100%
Government funding Since the federal funding cuts of the mid-nineties, the Some organisations make the dubious claim that
80%
responsibility for financing post-secondary education university graduates will earn an additional $1 million
has been downloaded on the backs of students over their lifetime as a result of obtaining a university
60% and their families. Government grants as a share of degree or college diploma. This mythical $1 million
university operating revenue have plummeted to figure has been thoroughly debunked. Research has
40% nearly 50 percent in some provinces, down from over found that most graduates are middle-income earners.
80 percent less than three decades ago. This resulted The Organisation for Economic Co-operation and
20% in the share of university budgets funded by tuition fees Development (OECD) reports that male graduates
more than doubling between 1988 and 2008, from 14 earn only an additional $149,373 over their lifetime. The
0% to 35 percent (Figure 1.1). return is substantially lower for female graduates who,
1978 1988 1998 2008 on average, earn only an additional $87,280. Given
While government funding has been partially restored,
fee increases have made up the majority of the that at least 70 percent of new jobs require a degree,
Figure 1.1: University Operating difference. Over the past fifteen years, tuition fees have post-secondary education has become a virtual pre-
Revenue divided between tuition fees requisite for participation in the labour market, not a
and government funding grown to become the single largest expense for most
university and college students, increasing significantly guarantee of future wealth.
faster than inflation and all other student costs (Figure The most equitable way to finance the post-
Tuition fees
Public transportation 1.2). This is especially concerning, as studies have found secondary education system is through the
Food that high tuition fees limit access to post-secondary progressive income tax system, which recovers the
50% Inflation
Rent
education for students from low- and middle-income cost of an individual’s education many times over. In
backgrounds. addition, this system ensures that the wealthy and
40% Statistics Canada reports that students from low- poor are taxed in a fair manner, reflective of their
income families are less than half as likely to participate respective ability to contribute and the economic
in university than those from high-income households. benefit obtained as a result of their education.
30%
A survey conducted by the national statistical agency Education costs are a source of significant unease
tallied the reasons high school graduates did not go among Canadians. According to a recent Harris/
20% on to participate in post-secondary education. It found Decima poll, Canadians rank tuition fee reductions
that, by an overwhelming margin, the most frequently as the top priority for government investment
10% reported reasons were financial. in education. The same poll also found that 67
Tuition fees act as a flat tax that is applied to all students per cent of Canadians—including a majority of
at the same rate, regardless of their financial resources. Québec residents—want the federal government
0% to exercise more control over transfers to the
The argument that post-secondary education will
2000
2001
2001
2003
2004
2005
2006
2007
2008
2009
2010

increase a student’s long-term earning potential is provinces for post-secondary education.

often presented as an argument against tuition fee
regulation.
Figure 1.2 tuition fees grow faster
than all other student costs

National Leadership
needed
The 2007 federal budget contained the largest
increase to core transfer payments for post-
secondary education in fifteen years, increasing
transfer payments by $700 million. Although this
was the largest increase in recent memory, cash
transfer payments for post-secondary education
are still roughly $410 million short of 1992 levels
when accounting for inflation and population
growth.
The benefits of investing in higher education
go well beyond the cost of direct investment
in teachers, staff, and infrastructure. A highly
educated workforce increases the tax base
and reduces the cost of a number of 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 post-secondary education was
in excess of $100,000 per individual: an amount
that exceeds the costs by $62,141.
Since the cuts to federal transfers payments
in the nineties, the quality of post-secondary
education has significantly declined. Class
sizes have increased substantially, while at the
same time institutions have pushed to casualise
the academic workforce, replacing full-time
tenured faculty members with overworked and
inadequately compensated sessional instructors.
Between 1990 and 2006, the ratio of students to
full-time faculty members increased by almost
40 percent.
University and college budgets have become
strained to such an extent that deferred
maintenance has begun to pose serious health
Canadian federation of students a national vision for post-secondary education
Canada’s post-secondary education system
and safety risks to students and staff. In 2009,
the Canadian Association of University Business
Officers estimated that the total value of deferred Let’s be clear about the
maintenance on Canadian campuses was more effect of unsustainable
than $5 billion, half of which is considered urgent, cost and the resulting
a 35 percent increase in less than a decade.
debts on individual
The 2009 federal budget allocated $2 billion to students...The lower the
college and university infrastructure. However, fees, the more egalitarian
the government placed conditions on the
the society. The lower
funding, specifying that it only go to new projects
and those with a research-intensive focus. In
the fees, the more we
addition, the government required that provincial are able to release the
governments or the private sector contribute at genius of the citizenry
least fifty percent of the project’s cost. These as a whole. And that
restrictions prevented the funds from going genius, that collective
to badly needed renovations, resulting in the unconscious is the key to
high levels of deferred maintenance going a successful democracy.
unaddressed.
Despite the substantial reinvestment in post- John Ralston Saul
secondary education in recent years, the
federal government has actually done very
64%
little to ensure that these investments will have
their desired impact. The lack of regulations
governing the Canada Social Transfer (CST)
is only a symptom of a broader problem: the of Canadians
federal government has never outlined its vision believe that
for Canada’s post-secondary education system. the cost of a
Without such a vision, federal investments will post-secondary
continue to be undermined and devalued. education is too
high.
9
Towards a post-
secondary education act
Although the federal government is one of the
largest sources of funding for post-secondary
education, there is no mechanism to ensure
that the funds transferred to provincial
governments, who administer education, are
actually spent on post-secondary education.
Under previous federal-provincial funding
models, the provinces had to match the
federal government’s investments in order
to receive funding. If a provincial government
chose to cut funding, federal transfers
were reduced by a proportionate amount.
The current block-funding model—with
funds transferred through the CST—has no
requirement that provincial governments
maintain their funding in order to receive
federal money.
There have been numerous examples of
provinces receiving federal funds, then
reducing their funding for post-secondary
education. For example, in 2008, the
Government of British Columbia cut
funding to universities by $50 million
in the same year that it received over domain of provincial governments, they
$110 million in new funding from the federal
government. The federal government
must accept its responsibility to ensure
that federal funds for social programs
are used as intended. In the absence of
federal oversight, provincial governments
have been free to misappropriate federal
transfers intended for post-secondary
education.
There is consensus in the post-secondary
education sector that the current design of
transfer payment mechanisms is insufficient
to meet the challenges facing Canada’s
post-secondary education system.
The federal government has a responsibility
to ensure equality of access to post-
secondary education in every province.
Despite this, the barriers facing students
vary greatly from province to province.
Students attending the Memorial University
of Newfoundland pay fees that are less than
half those charged at Dalhousie University.
Similarly a student studying law at McGill
University pays just one-tenth the fees a
study pays to study law at the University of
Toronto.
Although federal politicians often attempt to
deflect responsibility by claiming that post-
secondary education is the exclusive
are only partially correct. A distinction
must be drawn between “jurisdiction” and
“responsibility”. Education is constitutionally
within the legislative jurisdiction of provincial
governments. However, this assignment of
legal and legislative authority should not
be confused with the responsibility of all
levels of government to coordinate their

behaviour in order to build the best system of post-secondary
education possible.
If the federal government is to play a role in reducing socio-
economic inequality and increasing global competitiveness,
provincial coordination is not an option, but rather a necessity.
Reductions in federal spending are only possible because of a
lack of leadership.
Canada has a solid record of federal-provincial collaboration,
where federal legislation is in place to lend structure to the
relationship. Canada’s health care system is a living example of
how governments can prioritise the needs of Canadians over
jurisdictional debates.
With the increase in core funding announced in the 2007 federal
budget, the next logical step is to adopt federal legislation to
govern the funding allocated for post-secondary education.
Earmarking funding for post-secondary education, as has been
the case in recent federal budgets, is not enough.
The Canadian Federation of Students and the Canadian
Association of University Teachers both recommend the
adoption of legislation or other binding forms of agreement that
would establish conditions for federal post-secondary education
transfers. These conditions must commit the provinces to
upholding principles similar to those of the Canada Health Act.
Specifically, the act should be based on principles of public
administration, affordability, comprehensiveness, democratic
governance, and academic freedom. In return for upholding
these principles, provincial governments would receive
increased and stable funding from the federal government.
Provincial governments have signalled that they are interested
in exploring further collaboration with the federal government
Canadian federation of students a national vision for post-secondary education
Canada’s post-secondary education system
to improve the affordability and quality of post-secondary
education. Recently, all provincial governments have signed on
to the federally-initiated “Service Delivery Vision” for integrating
provincial and federal student loan and grants programs.
The federal government must use this willingness to reach an
agreement on transfers for post-secondary education, in part by
restoring cash transfer levels to 1992 levels. Most importantly,
the federal government and provincial governments must
establish long-term objectives, including reducing tuition fees.
R
ecommendation 1
The federal government should, in
cooperation with the provinces, implement
a federal Post-Secondary Education Act,
modeled after the principles of the Canada
Health 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 to
1992 levels; and
• Over five years, eliminate deferred
maintenance at Canada’s colleges and
universities.
11
12 Public education, for the public good Canadian federation of students

Tracking success: collecting
education statistics
Collectively the federal government and provincial governments
spend billions of dollars per year on post-secondary education,
but adequate information to fully analyse the effectiveness of
that spending is not collected. A 2006 report by the Organisation
for Economic Cooperation and Development (OECD) noted that
Canada could not provide data on 57 of the 96 indicators used
to compare countries with respect to post-secondary education.
Recently the Council of Ministers of Education has started to fund
some collection of these missing statistics, through Statistics
Canada. However this is not a sustainable solution to the federal
government’s underfunding of the education branch of Canada’s
national statistical agency.
Canada does not currently collect information about the age of
students when they enter or leave the post-secondary education
system, nor is 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.
While a significant number of students attend private post-
secondary colleges, these institutions lack both government
oversight and data collection regarding their operations. Private
colleges lack accountability and have been repeatedly found to
not meet basic standards regarding quality and administration.
While Canada would be better off with a completely public post-
secondary education system, should private institutions continue
to exist it is important that sufficient data is collected to monitor
their operations.
In May 2010, the Department of Human Resources and Skills
Development Canada announced that it would cease funding the
Canadian federation of students a national vision for post-secondary education
Education statistics
Youth in Transition Survey (YITS) and the National Longitudinal
Survey on Children and Youth. These studies are the primary
sources of information on who pursues post-secondary education,
and who is excluded from it. They provide vital information on
students, their first post-graduation interaction with the labour
market, and the relationship between education and employment.
The YITS is critical to fulfilling Canada’s international commitment
to provide the OECD with comparable data on post-secondary
education.
Without the data supplied by these studies it is impossible for
governments to make informed decisions about post-secondary
education policies and priorities. The absence of this information
will also make it extremely difficulty to conduct further research
regarding the post-secondary education system.
While the costs to discontinuing research of this nature are great,
the amount of funding necessary to properly conduct research
on students and the post-secondary system is extremely small.
An increase of $10 million, less than three tenths of one percent
of what the federal government spends on post-secondary
education, would establish the resources needed to carry out this
research.
R ecommendation 2
Increase funding by $10 million to
Statistics Canada’s branch for the
collection and analysis of post-
secondary education statistics.
13
 Students today:
buried in debt
Canadians are making extraordinary sacrifices to
prepare themselves for an evolving workplace.
Past government decisions at the federal and
provincial levels are forcing students and their
families to take on more education-related debt
than any previous generation, during a time
“Student debt loads when earnings for many families have been
have never been stagnant for the past twenty years.
higher... People Skyrocketing tuition fees and the prevalence of
loan-based financial assistance have pushed
graduating with
$30,000 in student student debt to historic levels. This past year,
almost 400,000 students were forced to borrow
loans on top of $5,000
to finance their education. Loans disbursed by
in credit card debt... the Canada Student Loans Program, less those
The result is many
that have been repaid, are increasing by nearly
students fall into a hole $1 million dollars a day.
they can’t easily climb
In September 2010 the total amount of student
out of.” loans owed to the government reached and single parents, are more likely to hold
$15 billion, the legislative ceiling set by the
Laurie Campbell,
Canada Student Financial Assistance Act. In
Executive Director
Credit Canada response the government altered the definition
of “student loan” to exclude over $1.5 billion
in federal student debt. Even with this new
definition, it is expected that federal student debt
will hit the legislative ceiling again in the near
future. In addition, the $15 billion figure actually
only accounts for a portion of Canada’s total
education-related debt, as it does not include
provincial and personal loans, lines of credit, and
credit card debt.
The impact of debt on students and
society
Many students are adverse to taking on the
high levels of debt that are required to afford
a college or university degree. Debt aversion
is the personal calculation that the sacrifice of
debt accumulation and repayment are not worth
the risk associated with the costs of obtaining
a degree or diploma. 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
in not attending post-secondary education, for
one in four accumulating debt was the biggest
deterrent.
In addition, students from marginalised
communities, lower income backgrounds,
negative feelings about accumulating student
debt, leading to additional barriers for already
marginalised people.
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 for professionals, which
undermines some people’s access to health
care and legal aid. Studies of medical and law
students found that debt levels cause these
students to seek higher paying jobs in fields
 $2.12billion

Student debt in Canada

[High levels of] Student debt
[Canada Education
are one of the primary effects
Savings Grants]’s give
Amount that the Canada Student Loans of the move towards policy
Program expects to lend for the 2010-11 year. scarce public funds to
that downloads the costs
the wrong households...
of public education onto

$2.52billion
the CESG program
students and their families
should be discontinued.
Kevin Milligan ALTERNATIVE FEDERAL
Approximate cost of education tax credits BUDGET 2010
UBC Economist
and savings schemes for the 2009-10 year. Canadian Center for Policy
Alternatives

or regions that are not necessarily their first choice. Student debt
appears to be driving committed young doctors away from family
practice and young lawyers away from the public service and pro
bono work. High levels of debt also prevent individuals from starting
families, working in public service careers, purchasing a home, and
pursuing low paying or volunteer experience in a career related to
the field of study, often necessary to “get a foot in the door.”
Invest in effective measures: grants not loans
This massive public expenditure, if offered as upfront grants, 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 the 2010-11 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 eliminated.

In fall 2009, the Millennium Scholarship Foundation was replaced

with a publicly accountable federal grant program. For the first
time the federal government has the mechanism necessary to

R ecommendation 3
provide direct financial assistance to students. While creating the
Canada Student Grants Program is an important first step, in order
to meaningfully reduce student debt, a larger investment in up-front Increase the value and number of
grants is required. non-repayable grants available to
Tax credits and savings schemes are by far the most expensive direct
students by redirecting funds allocated
federal measure for post-secondary education. The most recent data to education-related tax credits and
indicates that the total cost of the federal government’s tax credits savings schemes to the Canada
and savings schemes will exceed $2.5 billion this year. Student Grants Program, and allow
graduate students to qualify for grants
Despite their large price tag, federal tax expenditures are a very poor
under the Program.
instrument to either improve access to post-secondary education or
relieve student debt. All students qualify for tax credits, regardless of
financial need, thus diverting vast sums of public funding to families
who do not necessarily need the support.

Canadian federation of students a national vision for post-secondary education 15

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. Aboriginal
education must be a key
component in any such effort..”
CENTRE for the Study
of Living Standards
2009 Research Report
$400billion
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] two percent increase to the
overall [PSSSP] budget does not
meet the increasing costs of tuition
and 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 Northern
Affairs Canada
Evaluation of the Postsecondary
Education Program
Keeping the promise:
Funding for
aboriginal education
Aboriginal Learners
Post-secondary education plays a vital role in
improving the standard of living and developing
a more equitable society. Investments in
post-secondary education 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. 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 reported that closing the educational
gap would lead to an additional $179 billion in
direct GDP growth, and over $400 billion in total
growth over the next 20 years.
Education’s place as a right for Aboriginal
peoples is the result of 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 more than a decade.
In 1968, the Department of Indian and Northern
Affairs Canada (INAC) began providing direct
funding for First Nations and Inuit students
to attend post-secondary education. These
programs were clearly successful. In 1977-78,
only 3,600 students received support to attend
college or university; by 1999-2000, over 27,000
students benefited. Despite this investment,
educational attainment levels of Aboriginal
peoples remain significantly lower than the
overall population.
The gap in participation in post-secondary
education can be attributed to the significant
and complex barriers that Aboriginal students
face. Research has found that Aboriginal people
are much more likely to be debt-averse and
more reluctant to access loan-based programs
if they are in financial need. Aboriginal students
are also more likely to enter post-secondary
education at a later age, which makes them
more likely to 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. This lack of access to work severely
limits financial resources for families to pay for the
rising costs of college or university.
A majority of Aboriginal peoples have aspirations
to pursue post-secondary studies, but are
deterred by financial barriers, caused by a lack of
federal funding for post-secondary education.

Funding for aboriginal education
Currently, the federal government provides
financial assistance to status First Nations and Inuit
students through the Post-Secondary Student
Support Program (PSSSP). The PSSSP is meant to
facilitate access to post-secondary education and
alleviate the financial barriers faced by Aboriginal
students by covering the costs of tuition fees,
books, supplies, travel, and living expenses.
Prior to 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. In
1996, increases in funding were capped at two
percent annually. As a result of this strict limit on
increases, funding has been unable to keep up
with increasing living costs, inflation and tuition fee
between 2001 and 2006, over 10,500 students
were denied funding, with roughly 3,000 more
students denied each year. Due to the shortfall in
funding, priority is often given to shorter college
programs to the detriment of more expensive
professional or post-graduate programs of study.
According to the Assembly of First Nations, a
total of $545 million is required to ensure that
no Aboriginal student is denied access to post-
secondary education due to financial barriers,
and that those students that are funded receive
an adequate level of support. As INAC currently
provides $306 million, an additional $239 million
would be required. An additional $208 million is
needed to address the roughly 19,000 students
that have previously been denied funding. In
Aboriginal education
Québec, an injection of $24 million (in addition
to $23 million to address the backlog) would be
required to meet the needs of Aboriginal students
in that province. This funding would support a
total of 36,382 students across Canada and
roughly 4,000 in Québec. The funding disbursed
through the PSSSP has a proven track record
for those who can access it. Most Aboriginal
students who are able to access funding through
the PSSSP succeed in completing their studies
and 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.

R
increases that averaged four percent this year.
Prior to the implementation of the funding cap
ecommendation 4
approximately 27,000 Aboriginal students Remove the funding cap on increases to the Post-
received financial assistance. By 2006, the Secondary Student Support Program and ensure that
number had fallen to just over 22,000. The lack every eligible First Nations and Inuit learner is provided
of funding has forced communities administering adequate funding to attend post-secondary education.
the funds to make difficult decisions about who
receives funding each year. It is estimated that
Canadian federation of students a national vision for post-secondary education 17

Supporting research and
innovation, investing in Canadians
Investment in graduate studies provides the
foundation for long-term innovation and trains
the highly skilled workers and researchers that
are needed to respond to the economic and
social challenges Canada faces now and in the
future.
However, despite Canada’s relatively high
level of university graduation, Canada ranks
last among peer countries for PhD graduation
(Figure 5.3 on next page). This is despite a
dramatic expansion of graduate studies over
the last ten years.
Funding for research and graduate studies
towards recovering from the larger cuts of the 200,000
1990s. These cuts have prevented funding for
175,000
university research from keeping pace with the
increases in graduate student enrolment. 150,000
In addition, recent federal budgets have also 125,000
targeted an increasing amount of research
100,000
funding for the short-term priorities of the
private sector, thus undermining basic research, 75,000
which leads to long-term innovation. The 2009
50,000
budget provided funding to the Social Sciences
and Humanities Research Council (SSHRC) 25,000
for additional Canada Graduate Scholarships
0
(CGS), but directed they go to “business-related

1998

2000

2002

2004

2006

Enrolment in graduate studies increased by
37.5 percent between 1996 and 2006 (Figure
5.1). Despite this, there have been only modest
funding increases to the federal research
granting councils and scholarships that make
graduate education affordable. The federal
government’s lack of commitment to research
and graduate education limits the number of
2008
degrees”. Research funded by the Natural
Science and Engineering Research Council Figure 5.1: Graduate Enrolment
has also become increasingly directed toward
government-prioritised sectors of the economy. $8,000
This approach of directing research priorities
$7,000 Actual tuition fees
undermines the independence and peer- Inflation
review standards within Canada’s research $6,000

masters and doctoral students that can be community and has earned criticism from $5,000

funded, thus reducing the pool of highly skilled
researchers. In addition, these limits reduce the
quality of graduate education and prevent the
maximum utilisation of university research.
many in the scientific and research community. $4,000
Research policy of this nature is short-sighted
$3,000
and guarantees that Canada will fail to take full
advantage of Canada’s world-class researchers. $2,000

Graduate students face many obstacles that $1,000

Leading up to the 2009 budget, there had
been modest improvements to research include limited funding options, an increasingly $0
commercialised and restrictive research

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

funding delivered through the federal granting
councils. However, the tens of millions of
dollars in cuts contained in the 2009 budget
undermined the progress that had been made
2010
environment, rising tuition fees, no access to
needs-based grants, and high levels of student Figure 5.2: Graduate TUITION
debt from previous degrees. This year tuition FEES compared to inflation

Canadian federation of students a national vision for post-secondary education 19

 800 Spending
700 Return on investment The failure to fund
$50
600 world-class universities
500
is one explanation for
$40
400
Canada’s comparative
300
weaknesses in
200 $30
high-level academic
100
0
achievement—and
$20
its associated
Sweden

Switzerland

Finland

Germany

U.K.

Austria

Australia

Norway

Netherlands

Ireland

Denmark

Italy

U.S.

Belgium

France

Japan

Canada
weaknesses in
$10
innovation.
2003 2004 2006 2007
Conference
board of Canada
Figure 5.3 PhD Graduates Figure 5.4: Return on Investment
Education and Skills
(Number of PhD graduates per 100,000 people, aged 25-29) In Commercialisation Report Card
(In millions of dollars)

fees for graduate students increased by 6.6 Introducing commercialisation into university Forum’s annual competitiveness report again
percent, to over $6,400 (Figure 5.2 on previous research discourages corporate investment in ranked Canada poorly with regards to most
page), an increase that is nearly 50 percent their own research facilities, which leads to fewer measures of innovation this year. Despite
larger than increases in undergraduate tuition employment opportunities for researchers in being placed seventh for university-industry
fees, and almost four times the rate of inflation. an already difficult job market. The result of this collaboration and eighth for the quality of
Despite their significant investment of time and restructuring is that many highly-skilled workers scientific research institutions, Canada achieves
money, a recent study indicated that doctoral are unable to contribute to their full potential. a poor grade based largely on lacking private
graduates earn little more–and in some Federal funding geared towards market driven sector investment. Canada ranked fourteenth
instances less–than those with only a master’s research programs has resulted in the private for innovation in the report, behind the
degree. sector relying on public universities for research United States, Japan, Germany, Sweden and
and development to an unhealthy degree, Switzerland, amongst others.
Commercialisation of research thus undermining long-term innovation. This As this trend deepens, private sector research
The drive to commercialise university research corporate subsidy contributes directly to Canada and development infrastructure is giving way to
has a number of negative consequences. lagging behind peer countries in private-sector a publicly-backed university system that does
As jobs in government research facilities are investment in research and development and not have a consistent track-record of bringing
becoming increasingly scarce, and universities the products those labs produce. innovations to the marketplace.
are replacing tenure-track professors with Canada has consistently ranked low on indexes Since the late 1990s, a number of initiatives have
contract staff, graduates are having a harder time that measure innovation. The World Economic been undertaken to transform public university
finding employment in their field.

20 Public education, for the public good Canadian federation of students


infrastructure to meet the government’s commercialisation objectives,
such as requiring publicly funded research to seek direct, private-
sector investment.
Commercialised university research is geared towards producing
products that can yield short term results, with little consideration to
long-term innovation. As research funding is increasingly directed in
this way, basic research and long-term innovation are undermined.
Recent increases in funding for the federal research granting councils,
especially those resources dedicated to graduate students, have
disproportionately benefited applied research programmes that are
designed to pursue a commercialised agenda over basic, curiosity-
driven research.
The encroachment of the private sector into universities undermines
the independence of the academy, since money for research is
increasingly tied to entities outside the normal academic program.
These corporations can wield power over decisions that are normally
left to the research community, such as investment in maintenance,
research facilities or new buildings. The research community can also
come under pressure from private interests that fund research to not
report results that are against the economic interests of the private
funding source. Despite the fact that the shift to an increasingly private
funding model threatens the independence of university research,
there is currently no whistle-blower protection for graduate students
who wish to report research misconduct.
Graduate Student Funding
Although in recent years there have been small increases to funding
for the granting councils, they have never fully recovered from the cuts
of the 1990s. Despite the fact that funding has failed to keep pace with
the rising enrolment of graduate students, the 2009 federal budget
cut $148 million from the granting councils. This came at a time when
most countries were investing heavily in their university research
capacity.
Funding for discovery-type grants in the social sciences and
humanities lags far behind the applied sciences. Without proper levels
Canadian federation of students a national vision for post-secondary education
Funding for research and graduate studies
of funding and support for graduate students, Canada’s research and
innovation capacity will continue to fall behind that of other countries.
An investment in graduate students will help 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 lower income families have a harder time affording
graduate studies without the need-based grants that they would have
had access to in their undergraduate degrees. In the absence of a
grants program, Canada will continue to lose the most highly qualified
people to the labour market before they finish their training based
purely on individual finances.
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 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 for Canada’s research capacity and
innovation.
R
ecommendation 5
Increase the number of Canada
Graduate Scholarships to 3,000
– consistent with average growth
in the program since 2003 – to be
distributed proportionally among
the research councils according to
enrolment figures.
21
 Post-secondary education:
a necessary investment
With an annual investment of $2.7 billion, and the adoption of a post-secondary education act, the federal
government can stop the shift towards a privatised user-pay model. Investing in post-secondary education is
not an option, but a necessity. It would pay substantial dividends for the economy and ensure that everyone in
Canada, including Aboriginal peoples, can benefit from higher education.

Cost of proposals
(amounts in millions)

Creation of new PSE transfer $ 0

Increase to PSE transfer $ 410
Addressing deferred maintenance $ 1,000 Note 1
Reduce tuition fees to 1992 levels $ 799 Note 2
Increase funding for Aboriginal education $ 245
Clear backlog of funding for aboriginal education $ 208 note 3
Increase funding to Statistics Canada Centre for education statistics $ 10
Increase the number of Canada Graduate scholarships to 3000 $ 25
Increase in grants (Less savings from eliminated tax credits and savings schemes) $ 0

$ 2,697

Funding to remain at $1 billion per year for five years NOTE 1

Amount to increase to $1.59 billion in year two, and 2.39 billion NOTE 2
in year three, and for every year thereafter
One time cost Note 3

22 Public education, for the public good Canadian federation of students

 Costing of recommendations and further reading
For further reading...
the facts about post-secondary education
Fall 2009
Local•Section 1281

Canadian Federation of Students

www.cfs-fcee.ca
Strategy for Change:
LOI CANADIENNE
Money Does Matter CANADA POST-SECONDARY SUR L’ENSEIGNEMENT
EDUCATION ACT POSTSECONDAIRE
Post-Secondary Education Tax Credits
Billions in Misdirected “Financial Aid”
the number of months enrolled in post-secondary education
BILL C-X PROJET DE LOI C-X
Background multiplied by $65 for full-time students and $20 for full-time
As defined by the federal government’s Department of students.
Finance, tax expenditures include “exemptions, deductions,
rebates, deferrals and credits” that serve “to advance a wide Scholarship, fellowship and bursary tax credit: all An Act relating to post-secondary education ob- Loi concernant les objectifs de l’enseignement

Public Risk Private Gain range of economic, social, environmental, cultural and other amounts received for post-secondary scholarships, jectives and to cash contributions by Canada postsecondaire et les contributions pécuniaires
public policy objectives”. fellowships and bursaries exempt from tax, where these in respect of post-secondary education under versées par le Canada au titre de l’enseigne-
amounts are received in connection with enrolment in a provincial administration and to amend certain ment postsecondaire de compétence pro-
Since the mid-1990s, federal governments have increasingly program for which the student can claim the education tax
favoured tax expenditures over directly allocated student Acts in consequence thereof. vinciale et modifiant d’autres lois en con-
An introduction to the commercialisation of university research financial assistance. In total,
credit
séquence.
federal tax expenditures for Registered Education Savings
post-secondary students have Plans: Contributions to
Figure 1. Each year, the federal government spends more on
grown from $566 million in education related tax breaks for families earning over $70,000
Registered Education Savings
2009 1996 to more than $2.4 billion than it does on needs based grants. Plans (RESPs) grow tax-free until
in 2009.1 This represents a 431% the time that they are withdrawn,
National Graduate Caucus increase and more than seven Tax Credits Transferred at which point the saved amount As proposed by the Canadian Association Proposé par l’Association canadienne des
Canadian Federation of Students times the amount the federal to High Income Earners is taxable as income for the of University Teachers professeures et professeurs d’université
government’s granting program beneficiary. For more information,
will distribute in student $432M see the Canadian Federation of 2007 2007
financial aid. Students’ factsheet on the RESP
$345M program at www.cfs-fcee.ca.
The collection of tax
expenditures offered by the All of the post-secondary tax
Low- and Middle-Income credits can be used either by the
federal government for post-
Canada Student Grants student or transferred to a family
secondary education fall into
two categories: tax credits for member. Registered Education
expenses that have already been Saving Plans are, in the vast
incurred; and tax deductible savings plans to be used for majority of cases, established by parents for their children’s
An alternative for accessible, high-quality future education costs.
future education costs.
post-secondary education
Education Tax Credit: Students may claim a 16% tax credit
for the accrued “education amount”. The education amount
A Poor Approach to Reducing Student Debt
is equal to the number of months enrolled in post-secondary The non-refundable education and tuition fees tax credits
education multiplied by $400 for full-time students and $120 have been the most widely used and expensive federal tax
for part-time students. measures for post-secondary education. In the 2007 tax
year, the most recent year for which statistics are available,
Tuition Fee Tax Credit: Students may claim a 16% tax
National Office • Bureau national 2,688,240 claims were filed for the education, tuition fee and
credit for tuition fees and ancillary fees paid. In 1987, it
student loan interest credits, costing the federal government
338 rue Somerset Street West / Ouest became possible to transfer this credit to a spouse, parent, or
almost $1.8 billion in foregone tax revenue.2
Ottawa, Ontario grandparent. As of 1997, this credit may be carried forward
Canadian Federation of Students for application in future tax returns. This massive public expenditure, if offered as upfront
K2P 0J9 grants, could have almost eliminated the need for students
Student Loan Interest Tax Credit: Students may claim
(613) 232-7394 October 2007 to borrow. For example, the Canada Student Loans Program
a 16% tax credit for the interest paid in a year during
expects to lend roughly $2.2 billion during the 2009-10
www.cfs-fcee.ca repayment of a Canada Student Loan and provincial
academic year.3 In other words, if the amount of money the
student loan.
federal government spent on education related tax credits
Textbook Tax Credit: Students may claim a 16% tax credit this year had been shifted to the “front-end” in the form
for the assigned “textbook amount”. The amount is equal of grants through the Canada Student Grants Program,

A primer on the Strategy for Change: Post-secondary education act

commercialisation of An alternative proposal for Fact sheet: post-secondary
Canadian association of university
university research Student financial assistance education tax credits
teachers
www.caut.ca/uploads/pseact-2007.pdf

Local•Section 1281

the facts about post-secondary education

Fall 2009
Canadian Federation of Students
www.cfs-fcee.ca

Student Employment

FUNDING TUITION
Introduction
Employment is an important source of income for
students. According to Statistics Canada, income from
employment held during the current academic year was
the second most commonly used source of funding after
Work and Academic Success
Studies have found that working a significant number of
hours (over 20 per week) while in school has a negative
impact on academic success. Roughly 60% of university
students who worked during the year reported that it had
a negative impact on their academic performance. One in

FEES
personal savings. In fact, 63% of students age 20-24 relied
on employment to finance their education and over 25% four of these students rated the impact as significant. 9, 10

FOR
cited income from current employment as their most
important source of funding.1
Although there are several reasons that students are
increasingly combining work with school, rapidly
increasing tuition fees are most likely the biggest factor.
Working during the year also decreases a student’s
likelihood of finishing their degree. Statistics Canada’s
Youth in Transition study found that, “working at all
and working more hours both have a negative effect on
persistence”.11

POST-
While employment can help a student gain work

IN
Undergraduate tuition fees in Canada have increased
almost 300% from an average of $1,706 in 1991-92 to
$4,917 in 2009-10.2 International students are often
charged tuition fees of up to $15,000 per year, and some
professional students in excess of $25,000. Tuition fees have
experience and pay for expenses, students who work
over 20 hours a week and rely on employment to pay for
the increasing cost of their education find themselves at a
disadvantage. As tuition fees and other costs continue to

SECONDARY CANADA
grown to become the single largest expense for most
post-secondary students.
The 2006 College Student Survey (CSS) asked Canadian
college students why they worked. A majority said that
they worked to “pay for necessities” while another 10
percent said they worked to “pay for school or
rise, more and more students are finding little choice but to
take on more work.
Summer Employment
In summer 2009 student unemployment rose to over 20%,
the second highest rate ever recorded. The combination of

EDUCATION
school-related debt”. Today, one in four college and
university students depend on working to make ends
meet.
Working during studies
During the 2008-09 year, 48% of full-time students between
the ages of 20 and 24 worked during the school year,
compared to just 26.6% of their counterparts in 1976.4
Part-time students worked even more, with 91% of those
between the ages of 20-29 being employed during the
course of their degree.5 The number of full-time students
working more than 35 hours per week has almost doubled
over the past two decades.6
Full-time students who work do so an average of 15
hours per week, while part-time students work more than
30 hours per week. Over the course of their degree an
increasing number of students rely on employment, with
over 50% more students working during the last year of
their degree than their first.7
Female students report working more than their male
counterparts. In 2008, female students were 25 % more
likely to be employed during the academic year. 8
students having less savings from summer work, family’s
savings and income being diminished as a result of the
economic downturn and students facing higher tuition fees
than ever before has resulted in one-third of college and
university students saying they will run out of money by
the end of the Fall semester.12
More than 4 in 10 students rely on earnings from summer
employment to pay for their tuition fees and living costs.
For these students, savings from summer work account for
over one-third of their money for the year.
The Summer Canada Career Placement Program
The Summer Career Placement Program was created
by the federal government in the mid-nineties to help
students find summer employment and get career-
building work experience. The Program is a partnership
between employers and the federal government in which
the government subsidises private, public and non-profit
employers to hire students over the summer. In 1996, a
study done by the government found that nearly 7 in 10
participating employers would not have hired a student
without the program, which indicates that the program
created summer employment for over 50,000 students.

CA NAD I A N F E D E RAT I O N O F ST U D E N TS
C A N A D I A N F E D E RAT I O N O F ST U D E N TS

fact sheet: funding for post- Fact sheet: tuition fees Fact sheet: student Effects of tuition fees
secondary education employment Hugh mckenzie
www.ocufa.on.ca

Publications of the Canadian federation of students Related publications

All publications are available for download at www.cfs-fcee.ca

Canadian federation of students a national vision for post-secondary education 23

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24