A new report estimates Canadian undergraduate tuition fees will rise almost 18 per cent over the next four years, adding fuel to the debate over whether higher education is worth shelling out for.
The recently-released study by the Canadian Centre for Policy Alternatives (CCPA) says tuition is continuing to increase at a faster pace than the rate of inflation — a trend that has continued for more than two decades.
The projected increase doesn’t bode well for lower income families.
Statistics Canada says almost a third of 18 to 24-year-olds cite finances as the primary reason they don’t pursue education after high school. An additional 4.8 per cent said they weren’t able to get a loan.
Ontario and Nova Scotia are the worst for middle and low-income families, while Newfoundland and Labrador universities and colleges are almost three times more affordable, according to the study.
By 2015-16, the gap in affordability will be four times bigger, according to Erika Shaker, co-author of the study.
In a release, Shaker said government attempts to alleviate financial burdens through after-the-fact debt relief and tax breaks aren’t enough.
“While this can provide some modest relief for students who qualify, it does not help with the upfront costs: you can’t pay your university bill with a tax credit,” she said.
As a result, student debt is increasing.
The report said 60 per cent of Canadian students are graduating with an average debt of $27,000 the report said — the effects of which they will grapple with for a long time.
Students in debt can expect negative psychological effects, a longer delay in wealth accumulation and lower income than students who didn’t borrow money, the report said.
