Canadian post-secondary fees, benefits soaring: report

Canadians are spending more on post-secondary education, a new report says, but they're also reaping the benefits.

According to the Organization for Economic Co-operation and Development's annual Education at a Glance report, Canada is second only to the U.S. with how much it spends on post-secondary education in proportion to its GDP.

Private sources — primarily tuition fees — make up most of that funding.

The Canadian Federation of Students, a lobby group representing post-secondary students across the country, says that's a problem.

“We're asking Canadians and their families for too much in terms of paying the upfront costs of post-secondary education,” said Dave Molenhuis, the CFS' national chairman.

But people more than make back the money they pay for school, according to the report. The average Canadian man with a college or university education makes more than three times what he paid for his education. He also contributes $123,967 more in income taxes and social contributions over his working life than someone without post-secondary education.

But a lot of people can't afford to go to school in the first place, said Molenhuis.

High fees can prevent people from lower-income households, who are already more prone to debt, from attending school, he said.

Molenhuis also noted that a lot of undergraduates drop out due to the heavy financial burden.

“It leaves people behind,” he said of rising tuition fees.

The report says governments earn their money back and then some when they fund post-secondary education, in the form of taxes and other contributions from educated citizens.

“The benefits of investing in post-secondary education far outweigh the costs," said Molenhuis.

"Increasing core funding and reducing tuition fees are both within the governmentʼs reach."

An educated country also fares better during tough economic times, the report says.

“With the worldwide recession continuing to weigh on employment levels, education is an essential investment for responding to the changes in technology and demographics that are reshaping labour markets,” OECD secretary-general Angel Gurría said in a statement.

“Good education increases employability... In countries hit early by the recession, people with lower levels of education had more difficulties finding and keeping a job.”

The report comes days after it was announced that student debt in Canada is expected to hit $15 billion this month, years head of schedule.

“This is only the tip of the iceberg,” said Molenhuis, adding that number doesn't take into account provincial student loans, credit cards, student lines of credit or family loans.

“The system is becoming incredibly expensive and student debt is ballooning at an exorbitant rate.”