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Affordability of Post-Secondary Education

Affordability of Post-Secondary Education. By: Nick Falvo PhD Candidate Public Policy Guest Presentation to Prof. Ted Jackson’s PADM 5227 Class Feb 9, 2012. Rising Inequality. Canadian Context. 1979 Gov’t grants covered 80% of a university or college’s operating budget

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Affordability of Post-Secondary Education

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  1. Affordability of Post-Secondary Education By: Nick Falvo PhD Candidate Public Policy Guest Presentation to Prof. Ted Jackson’s PADM 5227 Class Feb 9, 2012

  2. Rising Inequality

  3. Canadian Context • 1979 Gov’t grants covered 80% of a university or college’s operating budget • 2012 Gov’t grants cover roughly 50% of a university or college’s operating budget Source: CFS, 2011.

  4. Rising Tuition • In 1990, the average university student in Ontario paid approximately $2,500 in tuition fees (in 2011 dollars). • In 2011, the figure was roughly $6,500 (also in 2011 dollars). Source: Macdonald and Shaker, 2011.

  5. Rising Inequality Meets Rising Tuition • A “middle income” Ontario family with a household member who graduated from university in 1990 had to dedicate about three months of their after-tax income to pay for the tuition fees. • Today: More than six months. Source: Macdonald and Shaker, 2011

  6. Rising Inequality Meets Rising Tuition (cont’d) • For households in the lowest quintile, it was nine months in 1990 and would be almost two years today. Source: Macdonald and Shaker, 2011.

  7. Yet, More Young People Enroll Today Than Ever Before…

  8. University and College Participation Rates (Ontario) Enrolment as share of population aged 18-24

  9. Less Funding, More Students • Between 1985-1986 and 2007-2008, annual federal cash transfers to Ontario for PSE (in constant 2007 dollars) ↓d from $1.4 billion to $1 billion. • During that same period, PSE enrolment in Ontario increased by more than 60%. Source: Clark et al, 2009

  10. Class Sizes Getting Bigger • The ratio of FTE students per full-time faculty member at Ontario universities ↑d by 47% b/w 1987-1988 and 2007-2008. • During that same period, FTE enrolments per full-time academic staff at Ontario’s community colleges almost doubled. Source: Clark et al, 2009

  11. %age of Canadian University Students Who Work During the Academic Year • 1976 25% • 2008 50% Source: CFS, 2011

  12. Student Debt Rising • For a four-year degree in Ontario, student debt has risen by 175% in the past 15 years. Source: CFS-Ontario

  13. And Then There Was Quebec… • Among the lowest tuition fees in Canada • PSE participation in Quebec is 9% higher than in the rest of Canada Source: Martin and Tremblay-Pepin, 2011

  14. Comparing Student Debt Average of debt for students enrolled in their final year of a bachelor’s degree program who took out student loans is: • Quebec: $15,000 • Ontario: $26,000 Source: Martin and Tremblay-Pepin, 2011

  15. Canada’s Best-Kept PSE Secret: Newfoundland and Labrador • Since 2003, N&L gov’t has ↑d funding for PSE by 82%. • Average tuition fees for domestic students in N&L are now $2,600/yr, which is half the Canadian average. Source: Dunne and Falvo, 2011

  16. Newfoundland and Labrador (cont’d) • Enrolment in N&L’s only university and only community college by students from the other three Atlantic provinces ↑d more than tenfold between 2001 and 2008. • Since the late 1990s, # of people in N&L with student debt has ↓d from 20,000 to roughly 8,000. Source: Dunne and Falvo, 2011

  17. Concluding Thoughts • Across Canada, far more young people enroll in PSE today than ever before. • Senior levels of government are paying substantially less per student than 30 years ago.

  18. Concluding Thoughts (cont’d) • Rising inequality—combined with rising tuition—is wedging households apart in terms of PSE affordability • Compared to 20 years ago, top-earning households see little difference in terms of financial burden. Not so for other households (i.e. the 99%).

  19. Concluding Thoughts (cont’d) • Many students cope by taking on substantially more gainful employment and student debt than in the past. • These ‘coping strategies’ run the risk of creating further wedges b/w rich and poor.

  20. Concluding Thoughts (cont’d) • Judging from rising student-faculty ratios, it is fair to say that students today get less attention from tenured faculty than in the past.

  21. Concluding Thoughts (cont’d) • Both Quebec and Newfoundland and Labrador have kept tuition fees considerably lower than in the rest of Canada. • Though association doesn’t imply causality, both provinces have experienced high participation rates and low levels of student debt.

  22. Thank You

  23. Contact Info Nick Falvo PhD Candidate (Public Policy) Carleton University E-mail: nfalvo@connect.carleton.ca

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