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Students in “dire circumstances” as they grapple with record unemployment rates, rising tuition costs and cuts to aid

(August 26, 2009) Students continue to be among those hardest hit by the recession, facing record unemployment rates, rising tuition fees in the six largest provinces, and cuts to student assistance.

Statistics Canada reports that the unemployment rate for students aged 15-24 rose to 21% in July, breaking all previous records. 152,000 fewer students were able to find work in July 2009 compared to one year earlier.

“Students who have been unable to find work this summer will be forced to take on more debt and may be unable to afford to return to school this fall,” said Katherine Giroux-Bougard, National Chairperson of the Canadian Federation of Students. “Summer jobs are not a luxury; they pay the bills.”

An Ipsos Reid poll conducted in mid-August shows that over one third of college and university students are concerned they will run out of money by the end of the fall semester.

“Students are in dire circumstances,” said Giroux-Bougard. “Many will not be able to make ends meet.”

According to the survey 80% of students plan to work during the coming year. Almost three-quarters of those surveyed said that finding work is essential to being able to afford to continue their education, with the same number saying that working will have a negative effect on their studies.

Tuition fees are currently the single largest expense for most college and university students, with average fees at almost $5,000 per year. What’s worse, says Giroux-Bougard, is that the six largest provinces will be increasing tuition fees this fall.

Both the federal and provincial governments are failing students, she says.

“By increasing tuition fees in a time of economic crisis, provincial governments are failing students, and, despite the recession and a dismal job market, the federal government has failed to increase funding for student financial aid and take action to reduce tuition fees,” said Giroux-Bougard.

“By not moving to reduce students debt the government has ignored an essential part of economic recovery,” she added.

The situation across the country

Aboriginal students Rising tuition fees have placed an increased burden on Aboriginal students across the country, a situation made worse because funding for these students, provided to band councils through the Post-Secondary Student Support Program (PSSSP), has remained flat with increases capped at just 2% per year. This fails to keep pace with the rate of inflation, let alone increasing numbers of Aboriginal students or tuition fee hikes.

British Columbia This summer the B.C. government cut its student aid budget by $16 million, or almost 14%, meaning students who cannot afford to repay their student debt, or who are disabled and can’t work, will no longer be eligible to have their loans forgiven. The cuts eliminate the Permanent Disability Benefits Program, Debt Reduction in Repayment, Loan Reduction for Residential Care Aide, Home Support Workers Programs, and the Health Care Bursary. The province’s Early Childhood Educator Loan Assistance Program is under review, and its Repayment Assistance Program is delayed. The cuts also eliminate the Premier’s Excellence Award that provided scholarships to high school students graduating with top marks. The government has also refused to freeze tuition fees, but has capped increases at 2%.

Alberta Officials in Alberta are reporting that record numbers of students are turning to loans, grants and bursaries to finance their education at universities and colleges this fall. The government has refused to implement a tuition fee freeze, instead tying increases to the rate of inflation, which, for the coming academic year means an increase of 4.1%.

Saskatchewan After a five-year tuition fee freeze, the provincial government announced in the spring that universities could raise fees up to 3%.

Manitoba The Manitoba government announced this spring that it was ending a decade-long tuition fee freeze and would allow the province’s universities to increase tuition fees by 4.5% and colleges to increase fees by $100.

Ontario In Ontario, tuition fees can be increased by 4.5% for first year students, and 4% for continuing students. Fees in graduate and professional programs can increase by up to 8% for students in their first year and 4 per cent for students in continuing years.

Québec The Quebec government ended a twelve year tuition freeze in 2007 with a fee increase of $50 per semester (or $100 per year). International students are bearing the brunt of new changes, however. In 2008 the government deregulated fees for international students in business, engineering, medicine, science, mathematics and computer science. Student groups worry that this will expanded to all areas of study for international students.

New Brunswick Tuition fees are frozen, but ancillary fees have tripled since last year at the University of New Brunswick

Nova Scotia In Nova Scotia, a tuition fee freeze is in place, but students continue to pay the highest average tuition fees in the country – average undergraduate tuition and compulsory fees in the province sit at almost $6,500 per year.

PEI In Prince Edward Island, tuition fees are increasing 4% for domestic students and 9% for international students.

Newfoundland and Labrador The Newfoundland and Labrador government has maintained a tuition fee freeze, eliminated interest on student loans, and has increased funding for up-front grants for the 2009-10 year.