Post Secondary Education In Canada

We now get the larger part of our industrial growth not from more capital investment but from improvements in men and improvements brought about by highly improved men. “ –
JOHN KENNETH GALBRAITH, “The Liberal Hour”, 1960.
In the past decades, globalization along with the rapid advancement of technology produced a strong demand for highly educated and skilled labour force worldwide. In response to the changes in labour market environment the number of young Canadians who choose to attend college or university is constantly rising. Between 2000 and 2013, the post-secondary participation rate among working age population in Canada jumped from 42.8% to 53.9%, according to Statistics Canada Survey ( Statistics Canada, CANSIM table 282-0004, 2013

). The trend toward the higher-skilled occupations is expected to continue over the next 10 years. Based on Canadian Occupational Projection System report by Employment and Social Development Canada, it is estimated that approximately 71.7% of all new job openings in Canada will require college or university education over the 2013 to 2022 period (ESDC 2013 COPS Projections, 2013).
The Government of Canada provides educational fundamentals by fully subsidising the elementary and secondary education systems.

It is also Government’s responsibility to ensure barrier free public access to post-secondary education system; however, Canadian students enrolled in the post-secondary institutions are required to pay tuition fees. The increasing need for higher skilled labour supply has given rise to an ongoing debate whether the post-secondary education in Canada should also be tuition free.
In short, the answer is No. Tertiary education in Canada should not be tuition free. Unlike elementary and secondary education systems that are fully subsidised by the government, post-secondary education should be within the public reach but not 100% tuition free. Now, take a step back to analyze the

dispute.
What do you want to be when you grow up? A question from childhood that suddenly is far more relevant once you step out of the high school doors. There is no universal answer to this question, yet we can all agree that we share something in common – a desire to be successful, financially sound and happy. The means of achieving these goals may vary, luckily there are options out there for us these days, and post-secondary education is just one of them. Post-secondary education is not a right, neither is it a privilege. It is purely a question of your own preference, an opportunity that you chose to proceed over other existing alternatives in hopes to make your dream of a bright future come true. While attaining a degree increases the likelihood of success, like any other opportunity it does not guarantee a desired outcome; yet, it does come with a price that you must be prepared to pay.
Those in support of tuition free education argue that Government investment in higher education will generate a return that will not only cover, but even exceed the cost of delivering the tertiary education.

Public education level is one of the important indicators of economic development of any country. High quality schooling generates a better trained population and skilled workforce, which, in return, benefits the government and society as a whole. The mechanism works as a chain reaction: higher education transforms into skilled workforce; skilled workforce into increased productivity; increased productivity leads to lower unemployment rates and higher income; higher income means higher taxes collected by the government; higher taxes allow better funding of social programs. The final outcome is improved standards of living. A valid argument, since there are social and economic benefits associated with higher level of education it is also reasonable for the Canadian Government to invest in post-secondary education system. It is indeed in the interest of Canadian Government to ensure the best access to post-secondary education for all students regardless of their income

circumstances.
However, besides the social and economic benefits, it is certain that someone with post-secondary degree will also be gaining private benefits. A higher level of education provides an edge in today’s job market; it gives employees job security due to broader employment opportunities and lower unemployment probability. Based on Labour force survey estimates by Statistics Canada, youth aged 15 and over with educational level higher than high school completion are more likely to get employed; in November 2015 the employment of those with a post-secondary education rate was estimated at about 70.2% and university degree 74.1%, while those with high school diploma only had their employment rate at 57.4% (Statistics Canada. Table 282-0003, 2015). Furthermore, that private investment in tertiary education is likely to pay off as jobs that require higher skill levels correspondingly are better compensated. Paul Davidson, president of the Association of Universities and Colleges of Canada The research by the Association of Universities and Colleges of Canada revealed that individuals with a degree make $1.4 million more over their lifetime than those with no post-secondary (The Globe and Mail, 2013). Finally, the increase in disposable income means higher life satisfaction. As mentioned previously it is in the best interest of those individuals who benefit from higher education to invest in their future and self-improvement. This logic suggests that students also should be responsible for paying at least some portion of the tuition costs.
Another argument in favor of free public higher education is that the high tuition fees are putting it out of reach for the low-income and middle-class children. During the 2014 to 2015 academic year, an average full time Canadian student was paying around $5,959 per year just in tuition fees, with an additional $900 for books and other course materials, and an average 3.3% cost increase per year (Statistics Canada,2015). Majority of people will also need money for food, accommodation, clothes, transportation and entertainment; however those expenses are hard to estimate, so we will not take them into consideration at this point. Based on the average four years it takes to earn a bachelor’s degree the total comes to roughly $28,821 Canadian dollars (University cost and debt calculator, 2015). No doubt, tuition fees can impose an access barrier to higher educational participation in case where there is lack of financial assistance programs in place.
The Government of Canada is taking a number of measures to support and improve the public access to post-secondary education for all students. According to Department of Finance Canada, in 2015 to 2016 federal funding for post-secondary education will be $4 billion (Department of Finance Canada, 2015). This represents 31% of the total payment from the federal government to social programs. Funded by the federal government, Canada Student Loans Program is the largest financial assistance program available to all Canadian students. The key components of the program include student grants, bursaries and scholarships that don’t need to be paid back; loan forgiveness for doctors and nurses; as well repayment assistance that helps to pay off the loan debt (CSLP Annual Report 2012-2013 , 2015) Tuition tax relive programs are also in place for the students with federal and provincial or territory loans. In 2012 to 2013, more than 356,000 students received financial assistance in the form of non-repayable grants, 65% of whom were students from the lower income families(CSLP Annual Report 2012-2013 , 2015). Even though the Government already provides social support to low-income students and helps to remove the entree barriers to higher education, essentially only those who are willing to take extra steps and extra time to research the opportunities are benefiting from them. Making post-secondary education tuition free is not an effective solution, as it most likely will have no influence on the composition of students who attend post-secondary institutions.
Another argument against tuition fees is that students who work get lower grades; lower GPA rates in return weaken post-secondary standards and graduates’ qualifications. To be able to afford the tuition costs many students are forced to work in minimum-wage jobs while attending classes. The most dedicated students end up working full time jobs on top of taking multiple courses, majority switch to part-time studies, some students take a few years off to pay out the accumulated debts. Either way, the necessity to work throughout school years puts a lot of pressure on students as it creates a conflict between work and study, causing some kids to drop their classes or even drop out of school.
On the other hand, paying for a portion of your tuition fees out of your own pocket is a responsibility that involves financial management and planning. You are more likely to make wiser choices and carefully pick the field of studies that you are interested in, and as a result improve your performance. In 2013, a national study by the University of California revealed a correlation between students’ money contributions and GPA grades. According to this study students who don’t pay for their education tend to have lower grades than those who do: students without financial aid averaged 3.15 GPA, students with $16,000 in support averaged about 3.0 while students receiving $40,000 averaged a 2.95 (National Center for Education Statistics, 2012). The reason behind is fairly obvious, no one likes to lose money. When you realize how much the education actually costs, chances are you will take your studies more seriously. Overall, higher student involvement means lower dropout rates, higher grades and of course greater skills. This is another reason why students should be putting money towards their education.
In fact, tuition fees are not the biggest concern when it comes to post-secondary education accessibility. The bigger concern is that most of the kids out of high-school are lacking basic financial literacy skills. They are not aware of the existing financing options and they do not know how to properly manage their money, as a result they can not make adequate financial decisions. Perhaps, a better solution will be to offer financial management training throughout the high school education by providing teenagers with information about the existing opportunities, and teaching them on how to responsibly manage their finances. Financial literacy skills will do a better job for them in the future. Kids have to understand the value of education and to be able to make intelligent financial choices. Canada’s Government needs work in helping students understand their options in regards to financing their education and how their education can be applied to life after school.
In conclusion, post-secondary graduates in Canada are the largest source of new labour supply. It is in the interest of the Government to ensure that the post-secondary education is accessible for students from low and medium income families. But then again, tuition free tertiary education is not an effective solution. “Free” education is not free money; it is taxpayers’ money. The cost of delivering tertiary education requires funding, professors have to be paid salaries, institution facilities have to be updated, and administration costs have to be covered. Students who benefit from higher education must also invest in their future and self-improvement. Financial education is very important part of this process.