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Facilitating Access to Post-Secondary Education in Canada 1 Facilitating Access to Post-Secondary Education in Canada 1

PSE in Canada is a Success… Ø Canada has one of the highest PSE PSE in Canada is a Success… Ø 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% Percentage of Population 25 -64 who had completed PSE, 2003 Ø 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 Ø 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 2

…However, Barriers Limit Access… Ø Low-Income • Only 50% likely to attend university due …However, Barriers Limit Access… Ø Low-Income • Only 50% likely to attend university due to financial issues and perceptions of affordability Ø Rural • Distance and income Ø New Canadians • Prior Learning Recognition, literacy and essential skills Ø Aboriginal • Income and academic un-preparedness (e. g. literacy and essential skills) • Family responsibilities (tend to be older) • Cultural differences Ø Persons with Disabilities • Higher costs and higher need • Inadequate infrastructure and accessibility (e. g. transportation) Ø Adult Learners • Work and family • Unresponsive schedule and PLAR Source: Survey of Labour and Income Dynamics 3

…and Concerns about Capacity and Quality Ø Core funding pressures may be affecting system …and Concerns about Capacity and Quality Ø Core funding pressures may be affecting system capacity and quality • • • Deferred maintenance at universities estimated at $3. 6 B 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) Ø Shift to R&D funding privileges universities over colleges Ø Some key outcomes are unsatisfactory • Colleges have not been successful at impacting literacy and essential skill levels • Canada produces fewer Ph. Ds graduates per capita than the US 4

Student Financial Assistance: A Multi-lateral Partnership Ø Student Financial Assistance in Canada is a Student Financial Assistance: A Multi-lateral Partnership Ø 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 Ø Government of Canada fund capacity through unconditional block transfers • Canada Social Transfer • Government looking into a dedicated PSE and training transfer 5

Canada Students Loans Program Ø Canada Student Loans Program promotes accessibility to PSE by Canada Students Loans Program Ø 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. 6 B 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 Ø Financial need is demonstrated using the following “needs assessment” • Assessed Need = Costs (Living & Education) – Resources (Student & Parental) Ø CSLP is delivered in partnership and close collaboration with ten participating provinces and territories Ø 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 6

Canada Students Loans Program Ø During studies, loans are: • • Interest-free for full-time Canada Students Loans Program Ø During studies, loans are: • • Interest-free for full-time students; repayment starts 6 months after leaving school Interest payable for part-time students Ø 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%) Ø 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 Ø CSLP also provides additional non-repayable assistance to “disadvantaged groups” including: • • • Students from low-income families Students with dependants Students with permanent disabilities 7

Canada Millennium Scholarship Foundation Ø Canada Millennium Scholarship Foundation (CMSF) is an independent organization Canada Millennium Scholarship Foundation Ø Canada Millennium Scholarship Foundation (CMSF) is an independent organization created by an act of Parliament in 1998 with an endowment of $2. 5 B to be disbursed by 2009/10 Ø Objectives of the foundation are to: • • Improve access to postsecondary education; and Encourage a high level of student achievement and engagement in Canadian society Ø CMSF distributes $300 M annually in the form of bursaries and $25 Min scholarships throughout Canada Ø CMSF bursaries are given to undergraduate students who demonstrate “high need” as assessed by the CSLP Ø Average bursary is around $3, 000 and reduces a student’s annual debt Ø Scholarships range from $4, 000 - $10, 000 per year • Scholarship award winners do not have to be eligible for a Canada Student Loan 8

Canada Education Savings Program Ø Canada Education Savings Program (CESP) encourages families to save Canada Education Savings Program Ø 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. Ø RESP savings can be used to pay for full and/or part-time studies in an apprenticeship program, trade school, CEGEP, college or university. Ø Savings in RESPs grow tax free until the child enrols in post-secondary education. Ø 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. Ø 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. 9

Post-Secondary Supports for Aboriginal Canadians Ø Department of Indian Affairs and Northern Development operates Post-Secondary Supports for Aboriginal Canadians Ø 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) Ø PSSSP and UCEP programs support eligible First Nation and Inuit students with tuition fees, books, travel and living allowances when applicable Ø ISSP is a proposal-driven program • It supports post-secondary institutes in program development and delivery. Ø 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) Ø Federal/Provincial/Territorial governments have agreed to work with Aboriginal leaders to develop strategies to improve Aboriginal peoples’ education outcomes 10

Universal Federal Tax Measures Ø Go. C offers a variety of universal tax credits: Universal Federal Tax Measures Ø Go. C 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 Ø First $3, 000 of an individual’s scholarship and bursary income is tax exempt Ø 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 Ø All provinces treat tuition tax credits in the same manner as the Go. C 11

Addressing Non-Financial Barriers Ø Only modest investments have been made toward reducing non-financial barriers Addressing Non-Financial Barriers Ø 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 Ø Some pilot projects are in place (e. g. New Brunswick & CMSF, Manitoba) to address non-financial barriers Ø 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 12

Way Forward – More Responsive System of Student Aid… Ø Create a balanced approach Way Forward – More Responsive System of Student Aid… Ø 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 Ø Extend and expand grants to facilitate access by disadvantaged groups Ø 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) Ø Modernize the delivery of student financial assistance (e. g. , e-enabled client centered delivery) 13

…and Taking Action to Meet Objectives in Learning, Social Policy, … Lifelong Learning Ø …and Taking Action to Meet Objectives in Learning, Social Policy, … Lifelong Learning Ø 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. ) Ø Greater mobility between institutions and within the labour market require strategic responses (e. g. , prior learning recognition and credit transfer) Ø Strong foundation of literacy and essential skills needed for success in KBE and to promote social inclusion of all individuals Social Inclusion Ø PSE institutions support changing needs of communities Ø Higher education plays a key role in facilitating understanding of different perspectives in an increasingly diverse society Ø Individuals who complete PSE have higher levels of participation in the labour market and society Ø Colleges and universities are increasingly seen as gateways for immigrant selection and integration 14

…Innovation, and International Innovation and Competitiveness Ø Leading-edge research and innovation is increasingly important …Innovation, and International Innovation and Competitiveness Ø Leading-edge research and innovation is increasingly important to remain competitive in the global knowledge based economy Ø Human capital development is key to improving Canada’s overall productivity Ø Institutions will continue to be hubs of local and regional economic development International Ø International Policy Statement committed Canada to “promote the internationalization of education through student exchange programs and direct institutional links. ” Ø Increasing recognition by all levels of government, PSE institutions and private sector of importance of internationalization Ø Need to improve links with immigration policy 15

Current Environment Ø Federally • New government in Ottawa moving towards “open” federalism • Current Environment Ø Federally • New government in Ottawa moving towards “open” federalism • Funding pressures – the Government of Canada seeking to address the “fiscal imbalance” Ø Provincial Territorial • Provinces collaboratively raising need for increased federal funding • Council of the Federation (Co. F) has identified need for a national skills and learning strategy • Council of Ministers of Education Canada (CMEC) coordinates provincial education ministries Ø 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 16

ANNEXES 17 ANNEXES 17

Post-Secondary Financing: Shared Responsibility • Provincial and territorial governments maintain strong jurisdiction over PSE Post-Secondary Financing: Shared 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. 18

OVERVIEW Federal government spending Support focuses on four main instruments: Go. C Expenditures on OVERVIEW Federal government spending Support focuses on four main instruments: Go. C Expenditures on PSE, 2003 -04* § transfers to provinces through CST (cash portion for PSE estimated at approximately $2. 3 B) § support to institutions for research through granting councils and foundations ($1. 5 B) § direct support to students through grants and loan programs ($1. 4 B) § support to students and their families through tax measures, including savings incentives ($1. 4 B) § specific support for First Nation & Inuit students living outside the territories ($301 M) Support has evolved over time according to changing needs and priorities Changes in Go. C expenditures relative to the mid-1990 s* $ Billions ($ Billions) § biggest change in the mid-90 s with a shift from transfers to direct support (i. e. research and student financial assistance) *Note: transfers only include notional calculation of cash component 19

Comparison of participation rates 20 Comparison of participation rates 20