High cost for higher education
News
Posted By Tara Seel, Tara's Two Bits, Guest Columnist
Updated 1 month ago
Who doesn't love babies? Canadians, apparently. We're just not procreating very much these days. Immigration, rather than new births, accounts for the majority of our population growth. In generations past, couples had several children for a variety of reasons: to help work on the farm or in the family business, for example. But the times have changed. These days, it is hard to find a good job without some form of post-secondary education. Yet, tuition at post-secondary institutions continues to rise. This means most young people are borrowing high amounts of money to finance an education that is showing meek returns in the current economic situation.
Statistics Canada released a study this year showing that Canadian grads are accumulating more debt than ever before, putting them at a real disadvantage as they enter the workforce. StatsCan also says these debt-ridden grads will receive labour market returns to their education similar to those of non-borrowers. But, over what period of time? When will a graduate start earning enough to handle their debt load? Never mind paying off debts, post-secondary graduates are in the market to buy houses so they can move out of their parents' homes; they are at the stage in their life when many are thinking about marriage and starting families. How can anyone afford to do all this when over a quarter of Canadian graduates begin this stage of their life owing more than $25,000? On top of that, many graduates are not building up savings or acquiring investments for the future and retirement because there is no way they can afford to do so. Saddling a generation of students with such an astronomical amount of debt will have far-reaching implications, some of which we are seeing already, such as low birth rates, economic instability and a lack of socio-economic equality.
Many countries offer free or affordable post-secondary education to its citizens (and, in some cases, international students) despite the increased costs of running schools. Canada needs to board this bandwagon. To make high quality post-secondary education accessible does nothing but enhance Canada's prospects for the future. On the other hand, watching our young people begin their adult lives with debt loads never before experienced will bring much hardship not only to individuals, but to the country as a whole.
It is unrealistic to believe the government, in these hard economic times, can say, "You know what, Tara? You make a great point. We're going to fund post-secondary studies." However, there are other approaches to take to alleviate the stresses on graduates until a funded program can be put in place. One such approach would be to keep post-secondary grads who have borrowed for their education in the lowest tax bracket, despite the level of their earnings, for the first five years after graduation. That way, instead of paying a high level of tax, they can pay down their loans and have a more solid economic and socio-economic footing moving forward. After five years of paying less income tax, they have a better chance of being in a position to buy a house, start a family or start a business.
Something has to change. As it stands, many graduates are barely keeping their heads above water, and treading water is no way to live.
Tara Seel is a guest columnist with The Daily Graphic.
news@cpheraldleader.com
Topic guidelines: We welcome your thoughts, stories and information related to this article.
Please stay on topic and be respectful of others. Keep the conversation appropriate for interested readers.
