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Saturday, September 01, 2018

Do the math: Tuition fees are not out of control | Business - The Globe and Mail

The new school year is almost upon us, the traditional time in Canada for complaining about tuition fees and how out of control they are, as The Globe and Mail reports.


University tuition did rise quite a bit in the 1990s. In Ontario, the Mike Harris government allowed fee increases of 20 per cent each year for its first three years in office. Nationally, tuition regularly rose by 5 to 7 per cent a year after inflation. Combine that with some fairly savage cuts in student grant aid, and you could plausibly claim something of an affordability crisis. But since 2000, provincial governments have been reluctant to charge domestic students higher fees. Fees still rise annually, but at a slow and steady average rate of 2 per cent a year after inflation.

But that’s not the end of the story. Over the past 15 years, governments have chosen to pour money into various types of student assistance, so much so that every single dollar of new fees taken in by universities and colleges over the past 17 years has been matched by a dollar in non-repayable grants, scholarships, tax credits, or education-savings grants.

Here’s the math: Statistics Canada tells us the total amount of tuition and fees collected in 2015-16 by universities and colleges was $12.6-billion, up from $5.8-billion in 2000-01 (in 2016 dollars). This rise was partly a result of tuition increases, but a bigger factor is that universities and colleges now have a lot more students than they did in 2000; full-time equivalent enrollment rose by nearly 50 per cent over those 15 years. Moreover, a lot of those new students were international students; if we take out the roughly $3-billion that these new undergrads pay, the increase in tuition fees for domestic students since 2000 amounts to a total of about $3.8-billion.
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Source: The Globe and Mail