Initiatives to Improve Student Access and Success

1. Initiatives to Improve Student Access and Success Government of Canada May 2007

2. PSE is vital to Canada’s social and economic well-being • In a globalized economy, knowledge, innovation, and skilled talent are critical to future economic prosperity and global competitiveness. • The private rate of return to completion of tertiary education in Canada is estimated at 8-10%. • Better educated workers earn higher wages, have greater earnings growth over their lifetimes, and experience less unemployment. • Positive public returns to education are estimated at 7-10%. • For example, the province of Ontario saves about $160 million per year through benefits from improved health and reduced welfare, unemployment and crime. • PSE facilitates: • Economic growth and innovation • Increases earnings and employment • Expansion of individual opportunity • Social benefits such as better health outcomes • Federal Student Financial Assistance (SFA) programs promote social equity and provide a foundation for human capital development • When evaluating PSE it is important to examine both entry and success FOR DISCUSSION PURPOSES ONLY - not for wider circulation

3. SFA in Canada is delivered in partnership with federal and jurisdictional governments. A mixture of repayable and non-repayable assistance is provided to students based on an assessment of need. Students and their families are expected to contribute to the cost of their PSE. The goals of SFA are to maintain the government’s commitment to accessibility to PSE, to make the loan experience a positive one, to ensure awareness of PSE options, and to make sure the program is running efficiently and effectively. SFA in Canada is based on the “student centered model” typified by high tuition and high levels of aid relative to other countries Secret Overview of SFA in Canada Tuition/Aid Models • Australia • Canada • US • NZ, UK • Aid • Grants • Loans • Tax • measures • France • Sweden • Finland Cost to Learner FOR DISCUSSION PURPOSES ONLY - not for wider circulation

4. In Canada, overall participation is good, however costs are rising… Percentage of Population 25-64 who had completed PSE, 2004 • PSE Participation rates are high • Canada enjoys a high PSE participation rate, particularly among young people. Of youth aged 18-20 in 2000, 54% had participated in PSE. By the time they were aged 24-26 in 2004, 77% had participated in PSE. • Canada’s PSE attainment rates lead OECD countries • Affordability is a growing issue and there is unmet need: • Roughly 40% of all students require SFA • Consequently, debt management is a challenge • 44% of graduates leave school with debt (average bachelor graduates - $20,000; college graduates - $13,000) • Concerns about completion remain: • Estimates vary but at least 20% of those who participate in college or university drop out before completing. Source: OECD Education at a Glance 2006 Top Barriers to PSE Malatest, Class of 2003 in CMSF Price of Knowledge, 2006-07 FOR DISCUSSION PURPOSES ONLY - not for wider circulation

5. In Canada, equity is also an issue: many groups lag behind… • Disparities exist for key segments of the population • Low-income • 31% of Canadians from lowest income quartile have attended university, compared to 43.4% from highest quartile • Persons with Disabilities • Persons with disabilities face lower completion rates – 40% of persons with disabilities have completed PSE compared to 48% of those without disabilities • Rural students • Distance from institution is a strong indicator of participation; rural students (those living beyond 80km of a university) are only 58% as likely to attend university as students living within easy commuting distance (less than 40km). PSE participation rates by level of participation and household after-tax income quartile FOR DISCUSSION PURPOSES ONLY - not for wider circulation

6. …and their access to PSE could help maintain participation • Aboriginal students • Only 38% of Aboriginal population 25 years and older have some PSE, compared to 48% of non-Aboriginal population • Barriers include non-completion of secondary school, low-income, disabilities • First generation learners • Education tends to persist inter-generationally; when parents have some level of PSE, their children have a PSE role model are more likely to participate in PSE • By contrast, for parents who do not have any PSE, their children are also unlikely to participate • First generation learners are important for breaking the cycle of choosing to forgo PSE FOR DISCUSSION PURPOSES ONLY - not for wider circulation

7. There are challenges in keeping pace with the evolving needs of learners… • The SFA system in Canada has evolved to adjust to new social and economic realities • Increase in Canadian Access Grants to aid groups that are more receptive to grants than loans • Introduction of tax credits to help offset rising costs • The massification of the PSE sector has meant that PSE is no longer for society’s elite alone. Our quality of life increasingly depends on all classes of people having access to PSE. • Efforts to increase access and participation in PSE, however, should not be at the expense of quality. • Two levels of government has rendered PSE more complex • SFA policies are not clear and coherent, and supports do not operate in a complementary fashion indicating a need for greater policy coherence and cooperation between the federal and provincial/territorial governments • The result has been complexity and poor client experience in some respects • Needs assessment policies and practices are not consistent and transparent • SFA service delivery burdens students and does not respond to their expectations for simplicity and convenience • Students expect E-delivery FOR DISCUSSION PURPOSES ONLY - not for wider circulation

8. In the future we will need to examine alternate pathways to PSE… • Canada’s SFA has traditionally focused on learners with a direct pathway to PSE, but in the face of changing demographics, labour market shortages and the literacy deficit, new pathways that support the knowledge-based economy must also be taken into account • Adult learners face unique challenges to completion of and re-entry to PSE • They have significant human capital, but may require support to understand the benefits of PSE • Many have dependents and numerous financial responsibilities and thus may be less willing or able to finance PSE • They do not have easy access to a network of advice and support for PSE, nor are many SFA products directly marketed to them • Immigrants face challenges in getting recognition for educational credentials FOR DISCUSSION PURPOSES ONLY - not for wider circulation

9. …SFA needs to be complemented by non-financial programming • As learners and their paths to PSE diversify, they need more and different information to support their decisions • PSE and SFA information should be provided across a variety of channels so that it can be accessed by learners outside the traditional high-school-to-PSE pathway • Second chance and alternate pathways are emerging but are not well supported • Public sector, PSE institutions, financial institutions and stakeholders need to work together to develop tools to help learners make informed decisions regarding their education FOR DISCUSSION PURPOSES ONLY - not for wider circulation

10. How can we improve access? • Multi-pronged strategies: • Financial assistance should be designed to promote access (e.g. up-front grants as opposed to loans for targeted groups) • More money is not always the solution; many barriers to PSE are non-financial and programming should be designed accordingly • A range of customized supports need to be available to disadvantaged students (low-income, rural students, first generation learners) as well as to those who pursue alternate pathways to PSE (e.g. Adults, Aboriginal people, people with learning disabilities, etc.) FOR DISCUSSION PURPOSES ONLY - not for wider circulation

11. What is being done to improve access A variety of approaches have been successful. A selection of notable efforts could include: • Addressing First Generation Learners • British Columbia has recognized the importance of first generation learners and has suggested that SFA is provided in the form of grants for this group • Providing better information and transparent services • Misconceptions about the benefits of PSE, lack of PSE role models, academic and literacy barriers, and lack of available information about PSE options impact participation of under-represented groups • Targeting under-represented groups such as Aboriginals to promote equity • Providing targeted grants and developing unique programs for Aboriginal learners, persons with disabilities, and low-come students among others, would help them to overcome non-financial and financial barriers to PSE FOR DISCUSSION PURPOSES ONLY - not for wider circulation

12. How can we increase success? • Increase student retention • Counseling could help address “lack of fit” problem • Offer support services for disadvantaged or nontraditional (e.g. adult) students • These services should extend throughout the entire program to ensure success and not merely access to PSE • Focus on preparation and foundational skills • To ensure that students are adequately prepared for PSE and thus that they have greater chances of success • Integrate teaching and learning and research • A balance between modern pedagogical approaches as well as high end research experiences is necessary (e.g. Nobel Prizewinner Carl Weiman) • Ensure funding for faculty, infrastructure and equipment is sufficient for a high quality experience FOR DISCUSSION PURPOSES ONLY - not for wider circulation

13. What is being done to increase success • Increased funding of early intervention programs for at-risk students • Better prepared students are more likely to succeed • Targeted, full program supports for disadvantaged students • e.g. Aboriginal learners, part-time students • Completion incentives for students • e.g. Alberta’s Loan Relief Program Completion Payment • Experiments with different pedagogies (e.g. Inquiry-based learning vs. lecture-based learning) • Promotion of co-operative education opportunities • Transition programs for first-year PSE students • Incentives for PSE institutions to increase their retention and graduation rates • Increased funding of PSE FOR DISCUSSION PURPOSES ONLY - not for wider circulation

14. What is the experience in your jurisdictions regarding… • Enhancing equity of participation. • Responding to non-financial barriers to PSE and unique quality of service. • Increasing completion in addition to participation. • Maximizing access without compromising success. FOR DISCUSSION PURPOSES ONLY - not for wider circulation