Would dropping tuition fees benefit students?
RECENTLY, THE STUDENT Federation of the University of Ottawa (SFUO) erected a “Wall of Debt” to bring
awareness to high tuition fees and skyrocketing student debt—issues some experts challenge in their research.
The rising cost of education
According to the Canadian Federation of Students (CFS), students owe the federal government over $15 billion in loans, a number growing rapidly.
“We’re in a situation right now in Canada where the average student, upon graduation, owes $25,000,” said CFS chair Roxanne Dubois. “It’s a huge burden to put on today’s youth.”
That number is consistent with a report released by the Canadian Council on Learning (CCL) in September 2010, which states, “Between 1990 and 2000, the average debt for a university graduate more than doubled.”
Tuition rates are still going up—in the past year, tuition fees increased in every province and territory except Newfoundland and Labrador, Nova Scotia, and New Brunswick.
“Tuition fees in Canada have increased over four times the rate of inflation in the country,” said Dubois.
Liz Kessler, SFUO vp university affairs, said tuition is going up because of a lack of government involvement in the problem.
“The amount of funding the government is putting toward tuition fees goes down, and [universities] have to raise tuition fees to make up for the fact,” said Kessler. “That’s why students are in debt.”
Combating tuition fees
A national graduate survey done by Statistics Canada states, “Among graduates in 2005 who did not pursue further education, about half financed their post-secondary education without taking on any education-related loans.”
The report done by the CCL adds, “Graduates of [post-secondary education] who have accumulated large debt-loads (more than $20,000) were less likely to own their homes or to have saved for retirement than graduates who were debt-free,” indicating reliance on loans to pay for schooling is not ideal for students.
According to Dubois, in order to increase access to education, tuition fees should be lowered, a message reflected in CFS’s Education is a Right campaign.
“When we have a system that requires students to pay upfront to have access to it, it means students have to be able to find resources to go to school,” she said. “If they’re not able to, they have to take on loans and they have to get into debt.”
Alternative perspectives on dropping fees
Alex Usher, president of Higher Education Strategy Associates, an organization that devises tactics to help improve post-graduate education, compared student debt levels across eight countries in a report published in 2005.
He found student debt in Canada is higher in comparison to countries like New Zealand and Australia, but argues it is not excessive.
“If you make student loans easy to get, people are going to borrow,” said Usher. “We have higher than average costs—by no means the highest—and relatively loose rules about who gets to borrow.
“I can certainly see the argument for increasing the amount of grants you give to low-income students. I can’t see the argument for lowering tuition,” he added.
Ross Finnie, associate professor of the Graduate School of Public and International Affairs, agreed with Usher’s argument.
“[Post-secondary education] does appear affordable to those who want to go,” said Finnie. “There are very few who cite not being able to go as a barrier.”
Both Usher and Finnie argued there is little evidence demonstrating decreasing tuition fees will increase access to education. According to Finnie, though the average amount of graduate debt does run past the $20,000 mark, it’s still manageable.
“It sounds like a lot, but in a lifetime perspective it’s not very much, especially considering the benefits of having a higher education—including financial ones,” said Finnie.
The Statistics Canada survey confirms Finnie’s argument, showing earnings, on average, increase according to level of study. According to the survey, most post-secondary graduates with education related debt were able to pay it off within two years.
Finnie explained there are resources available for those having trouble managing their debt after graduation, like the federal government’s Repayment Assistance Plan.
“One thing students probably don’t understand as much as they could or should is there are some really good programs in place for those students who are having difficulty with their loans in the post-schooling period,” said Finnie. “A portion of the loans can be forgiven at the time. There’s lots of assistance in place—it’s just not very well advertised.”
Quality of education
Though tuition fees are likely to be going up, both Usher and Finnie said they shouldn’t be frozen or reduced—doing so could cause education quality to plummet. Finnie cited the example of Quebec, where tuition fees are among the lowest in the country.
“If you take tuition fees away, it could have a negative effect on the quality of the system,” Finnie said. “That’s one of the arguments made in Quebec: The fees are so low it basically starves the post-secondary education system.”
Finnie said the post-secondary enrolment rate in Quebec is among the lowest in Canada.
“Are [students] getting the quality that they should have and what they should expect given the fees they pay?,” he said. “I don’t think that’s been given enough attention over time and I think that’s where students should be focused. After all, do you really want the cheapest product or do you want a good quality product at a reasonable price?”
Increasing accessibility
There is a growing need for high-quality post-secondary education. According to Dubois, 70 per cent of newly posted jobs require a post-secondary diploma.
“We’re no longer in a period where pursuing post-secondary education is an option,” she said. “It’s necessary for students because we need to gain the skills and knowledge needed for the jobs.”
Finnie, whose research focuses on accessibility to education, said lack of finances isn’t the reason behind individuals deciding against post-secondary education—cultural factors are.
“Individuals who grow up in families where post-secondary education is valued, they go,” explained Finnie. “If they don’t have that, they tend not to go. That’s got little to do with family income or fee structures.”
Finnie recommended going into high schools and tackling what he calls “cultural barriers” to encourage more students to keep studying.
“To truly improve opportunities for access, we need to attack those barriers,” said Finnie. “That means getting in the high schools and increasing students’ awareness of the benefits of post-secondary education.”
Dubois, on the other hand, suggested implementing a national plan for post-secondary education similar to the health care plan currently in place.
“There’s a huge disparity between provinces,” she said. “We don’t have a national vision or national strategy for post-secondary education. What we’re calling for is a national vision in the form of a post-secondary education act that would have a dedicated transfer payment. This money would have to be spent [by the provinces] in some specific way, which would reduce tuition fees.”
So, do we drop fees?
Although lowering tuition fees sounds like a be-all, end-all solution, Finnie and Usher agreed it wouldn’t solve problems with debt and accessibility to post-secondary education.
“If you look at almost all the data, Canada’s relative rates of access … are very, very good,” said Usher. “If by lowering prices you increase access at the bottom end by two or three per cent, what you’re really saying is that 97 or 98 per cent would have gone anyway. So why would you bother?”
—Jane Lytvynenko
