Good afternoon. I thank you for the opportunity to speak to you today about our priorities for budget 2010.
The Canadian Federation of Students is Canada's largest student organization. We represent college, undergraduate, and graduate students at Canada's public universities and colleges, both small and large. Altogether, we unite over half a million students on campaigns for affordable, high-quality post-secondary education.
My comments today come at a time when students are facing incredible hardships. More than any other generation in Canada's history, students today are struggling to afford their education. Record tuition fees, combined with the effects of the global recession, have heavily impacted students and their families.
This past summer saw the second-highest level of student unemployment since Statistics Canada started collecting data in 1977, with both July and August breaking all previous records. Those students who did find jobs received fewer hours and earned less.
More than ever, students are looking for the federal government to build on its long history of involvement in funding for post-secondary education. Canadians have benefited from more than six decades of federal funding, from direct or indirect transfers to student loans and grants. This kind of national leadership will be critical to our long-term economic recovery and to reducing socio-economic inequality.
Students have applauded the substantial investments in post-secondary education in the last three budgets. However, without a national vision, there is no guarantee that these investments make it into the hands of students and their families. For example, shortly after the announcement of one of the largest increases in federal funding for post-secondary education, the Government of British Columbia cut funding to universities by $50 million.
A post-secondary education act, akin to the Canada Health Act, will not only help increase accountability, but will also help establish long-term post-secondary education objectives that target quality and affordability at our public institutions. In return for upholding these principles, provincial governments would receive increased and predictable funding from the federal government.
The second area I would like to focus my comments on today is our student financial assistance system. The 2008 budget answered the Canadian Federation of Students' call for a true national system of grants, with students receiving their first Canada student grants this fall.
However, high fees continue to push student debt to historic heights. Average debt for a four-year program ranges between $21,000 and $28,000, depending on the province or the area of study. Last January, student loans owed to the federal government surpassed $13 billion for the first time in Canadian history. This continues to increase by $1.2 million a day. This figure does not even include provincial student loan debt or personal debt.
The federal government currently spends substantial amounts on expensive tax credits that predominantly benefit those who need it least. These non-refundable education and tuition fee tax credits cost the federal government over $1.44 billion a year. Tax credits are a poor instrument to improve access or reduce student debt, and they aren't available when students are required to pay their tuition fees or living expenses.
A much more effective way to ensure federal funding improves student financial assistance would be to shift all funding from back-ended tax credits to upfront grants. This would be a cost-neutral measure for the federal government and would reduce student debt by 75%.
I will end my presentation here. I look forward to providing more in-depth information during the question period.
Thank you again for the opportunity to speak with you.