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Facilitating Access to Facilitating Access to Post-Secondary Education in CanadaPost-Secondary Education in Canada

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PSE in Canada is a Success…PSE in Canada is a Success…

Canada has one of the highest PSE attainment rates in the world.

• 43% of Canadians (25-64) have completed some form of PSE

• 54% increase since 1991, almost double the OECD average of 23%

Enrolment is rising• Colleges by 24% in the last decade• University enrolment at an all time

high of nearly 100,000 • Graduate enrolment grew by 12.6%

from 1997 to 2001

Enrolment will continue to rise• Over 93% of Canadian parents of

children aged 0 to 18 hope that their children will pursue PSE

Source: OECD Education at a Glance 2005

Percentage of Population 25-64 who had completed PSE, 2003

2217

9

17 1511 10 9 9 10

22

21

2816 18

2016

14 14 12

0

5

10

15

20

25

30

35

40

45

50

CDA JPN US FND SWE AUL IRE FRC UK GER

College University

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Low-Income• Only 50% likely to attend university due to

financial issues and perceptions of affordability

Rural• Distance and income

New Canadians• Prior Learning Recognition, literacy and essential

skills

Aboriginal• Income and academic un-preparedness (e.g.

literacy and essential skills)• Family responsibilities (tend to be older) • Cultural differences

Persons with Disabilities• Higher costs and higher need• Inadequate infrastructure and accessibility (e.g.

transportation)

Adult Learners• Work and family• Unresponsive schedule and PLAR

Highest Level of Education(18-21 year-olds, by family income quartile)

0

5

10

15

20

25

30

35

40

Lowest Quartile Lower Middle Higher Middle Highest Quartile

University Colleges

……However, Barriers Limit Access…However, Barriers Limit Access…

Source: Survey of Labour and Income Dynamics

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……and Concerns about Capacity and Qualityand Concerns about Capacity and Quality

Core funding pressures may be affecting system capacity and quality• Deferred maintenance at universities estimated at $3.6B• Less than half of college training equipment is considered up to date• Increasing class sizes • Greater focus on part-time sessional staff• Faculty retirements loom and enrolments projected to steadily increase

More than half of the teaching staff in PSE are over age 50 20,000 new faculty needed by the end of the decade (up to 30% of faculty)

Shift to R&D funding privileges universities over colleges

Some key outcomes are unsatisfactory• Colleges have not been successful at impacting literacy and essential skill levels• Canada produces fewer PhDs graduates per capita than the US

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Student Financial Assistance:Student Financial Assistance:A Multi-lateral PartnershipA Multi-lateral Partnership

Student Financial Assistance in Canada is a combination of targeted and universal supports provided by federal, provincial, and private sources

• Subsidized Government Student Loans

• Grants / Bursaries for target groups

• Scholarships for high-merit students

• Asset-based programs

• Savings Incentives

• Tax measures

Government of Canada fund capacity through unconditional block transfers

• Canada Social Transfer

• Government looking into a dedicated PSE and training transfer

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Canada Students Loans ProgramCanada Students Loans Program

Canada Student Loans Program promotes accessibility to PSE by lowering financial barriers through loans and grants targeted at Canadians with demonstrated financial need

• Approximately 340,000 recipients per year, receiving $1.6B in loans

• Approximately 41% of all current full-time PSE students have a Canada Student Loan

• 70% of students with loans said they would not have went to PSE without financial support

Financial need is demonstrated using the following “needs assessment”

• Assessed Need = Costs (Living & Education) – Resources (Student & Parental)

CSLP is delivered in partnership and close collaboration with ten participating provinces and territories

CSLP award limits are $210 per week of study for full-time students

• Provincial and territorial award limits range from $140 - $165 per week

• CSLP provides loans and grants to meet 60% of a student’s assessed need, leaving 40% for provinces and territories to finance

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Canada Students Loans ProgramCanada Students Loans Program During studies, loans are:

• Interest-free for full-time students; repayment starts 6 months after leaving school• Interest payable for part-time students

Interest begins to accumulate once studies end• Loans are typically amortized over 9.5 years• Interest rate is: fixed rate (prime + 5%) or variable rate (prime + 2.5%)

Debt management programs exist for borrowers who have difficulties in repayment.

• Repayment can be deferred interest free for qualifying borrowers in difficulty for up to 54 months

CSLP also provides additional non-repayable assistance to “disadvantaged groups” including:

• Students from low-income families• Students with dependants• Students with permanent disabilities

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Canada Millennium Scholarship Canada Millennium Scholarship FoundationFoundation

Canada Millennium Scholarship Foundation (CMSF) is an independent organization created by an act of Parliament in 1998 with an endowment of $2.5B to be disbursed by 2009/10

Objectives of the foundation are to:• Improve access to postsecondary education; and

• Encourage a high level of student achievement and engagement in Canadian society

CMSF distributes $300M annually in the form of bursaries and $25Min scholarships throughout Canada

CMSF bursaries are given to undergraduate students who demonstrate “high need” as assessed by the CSLP

Average bursary is around $3,000 and reduces a student’s annual debt

Scholarships range from $4,000 - $10,000 per year• Scholarship award winners do not have to be eligible for a Canada Student Loan

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Canada Education Savings ProgramCanada Education Savings Program

Canada Education Savings Program (CESP) encourages families to save for their children’s education in Registered Education Savings Plans (RESP) through the provision of Canada Education Savings Grants and Canada Learning Bonds.

RESP savings can be used to pay for full and/or part-time studies in an apprenticeship program, trade school, CEGEP, college or university.

Savings in RESPs grow tax free until the child enrols in post-secondary education.

The Canada Education Grants adds 20% - 40% (based on family income) to the first $2,000 in annual RESP contributions for eligible beneficiaries 0-17 years old.

Children born after 2003 into low-income families are also are entitled to receive a $500 Canada Learning Bond at birth to start an RESP.

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Post-Secondary Supports for Post-Secondary Supports for Aboriginal CanadiansAboriginal Canadians

Department of Indian Affairs and Northern Development operates PSE SFA for First Nations and Inuit consisting of:

• Post-Secondary Student Support Program (PSSSP)

• University College Entrance Preparation Program (UCEPP)

• Indian Studies Support Program (ISSP)

PSSSP and UCEP programs support eligible First Nation and Inuit students with tuition fees, books, travel and living allowances when applicable

ISSP is a proposal-driven program • It supports post-secondary institutes in program development and delivery.

Government of Canada has provided endowments to the National Aboriginal Achievement Foundation, which provides grants, scholarships and bursaries to all Aboriginal peoples (First Nations, Inuit, Métis, and non-Status Indians)

Federal/Provincial/Territorial governments have agreed to work with Aboriginal leaders to develop strategies to improve Aboriginal peoples’ education outcomes

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Universal Federal Tax MeasuresUniversal Federal Tax Measures

GoC offers a variety of universal tax credits:

• Tuition Fee Credit – equal to eligible tuition expenses

• Education Tax Credit – equal to $400 per month for full-time students and $120 per month for part-time students

• Interest Paid – equal to the interest portion of Canada Student Loan payments

First $3,000 of an individual’s scholarship and bursary income is tax exempt

Tax credits are equal to the lowest marginal tax rate (currently 15%)

• Credits are non-refundable, but in some cases can be transferred to a parent or spouse or carried forward indefinitely to be applied in a future tax year

All provinces treat tuition tax credits in the same manner as the GoC

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Addressing Non-Financial BarriersAddressing Non-Financial Barriers

Only modest investments have been made toward reducing non-financial barriers (e.g. social capital barriers, informational barriers, cultural barriers)

• However, there is no single national approach

Some pilot projects are in place (e.g. New Brunswick & CMSF, Manitoba) to address non-financial barriers

Some colleges and universities have also developed programs

• Access Programs have been introduced in Manitoba, providing counselling and academic support to ease the transition to post-secondary education

• Student Support Centres (e.g., First Nations House of Learning at the University of British Columbia) serve as a community within a community and provide counseling and mentoring supports to alleviate feelings of isolation and cope with the academic pressures

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Way Forward – More Responsive System of Way Forward – More Responsive System of Student Aid…Student Aid…

Create a balanced approach to address access and affordability challenges• Strengthen and expand PSE accessibility supports

• Adjust SFA to better reflect ongoing affordability challenges

• Improve debt management measures

Extend and expand grants to facilitate access by disadvantaged groups

Increase and enhance measures to address non-financial barriers should be increased

• Provide more timely and relevant information

• Expand outreach programs nationally

• Recognize innovative pathways to learning (e.g., PLAR)

Modernize the delivery of student financial assistance (e.g., e-enabled client centered delivery)

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……and Taking Action to Meet Objectives in and Taking Action to Meet Objectives in Learning, Social Policy,…Learning, Social Policy,…

Lifelong Learning Demographics and knowledge-based economy necessitate that the PSE

system is responsive to wider range of learners (e.g., more mature learners, Aboriginal people, distance students, international students, etc.)

Greater mobility between institutions and within the labour market require strategic responses (e.g., prior learning recognition and credit transfer)

Strong foundation of literacy and essential skills needed for success in KBE and to promote social inclusion of all individuals

Social Inclusion PSE institutions support changing needs of communities Higher education plays a key role in facilitating understanding of different

perspectives in an increasingly diverse society Individuals who complete PSE have higher levels of participation in the labour

market and society Colleges and universities are increasingly seen as gateways for immigrant

selection and integration

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……Innovation, and International Innovation, and International

Innovation and Competitiveness Leading-edge research and innovation is increasingly important to remain

competitive in the global knowledge based economy Human capital development is key to improving Canada’s overall

productivity Institutions will continue to be hubs of local and regional economic

development

International International Policy Statement committed Canada to “promote the

internationalization of education through student exchange programs and direct institutional links.”

Increasing recognition by all levels of government, PSE institutions and private sector of importance of internationalization

Need to improve links with immigration policy

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Current EnvironmentCurrent Environment

Federally

• New government in Ottawa moving towards “open” federalism

• Funding pressures – the Government of Canada seeking to address the “fiscal imbalance”

Provincial Territorial

• Provinces collaboratively raising need for increased federal funding

• Council of the Federation (CoF) has identified need for a national skills and learning strategy

• Council of Ministers of Education Canada (CMEC) coordinates provincial education ministries

Stakeholders

• Stakeholders have been lobbying all levels of government to increase support to PSE

• Canadians are also increasingly attuned to PSE and want increased investments by all levels of government

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ANNEXESANNEXES

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Post-Secondary Financing: Post-Secondary Financing: Shared ResponsibilityShared Responsibility

• Provincial and territorial governments maintain strong jurisdiction over PSE

• However, the Government of Canada is a key partner in providing supports to learners and Canada’s learning system.

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Federal government spendingFederal government spending

Support focuses on four main instruments:

transfers to provinces through CST (cash portion for PSE estimated at approximately $2.3B)

support to institutions for research through granting councils and foundations ($1.5B)

direct support to students through grants and loan programs ($1.4B)

support to students and their families through tax measures, including savings incentives ($1.4B)

specific support for First Nation & Inuit students living outside the territories ($301 M)

Support has evolved over time according to changing needs and priorities

biggest change in the mid-90s with a shift from transfers to direct support (i.e. research and student financial assistance)

Changes in GoC expenditures relative to the mid-1990s*

($ Billions)

GoC Expenditures on PSE, 2003-04*

Transfers34%

Research support

22%

Tax measures20%

Student financial

assistance20%

First Nations/Inuit 4%

0

0.5

1

1.5

2

2.5

Transfers Researchsupport

Tax measures Studentfinancial

assistance

FirstNations/Inuit

1994-95 2004-05

*Note: transfers only include notional calculation of cash component

$ Billions$ Billions

OVERVIEW

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Comparison of participation ratesComparison of participation rates