Thank you.
Good morning. My name is Jessica McCormick. I'm the chair of the Canadian Federation of Students--Newfoundland and Labrador. The federation represents every public university and college student in the province and over half a million post-secondary students across Canada. I'd like to thank the committee for the opportunity to make the voice of students heard here today.
The student movement's recommendations focus on how the next federal budget can improve access to post-secondary education for students like me and pave the way for a more stable and equitable economy.
As a student who faced significant barriers accessing post-secondary education in my home province of Nova Scotia, I was forced to leave my family, friends, and community in Cape Breton and attend Memorial University of Newfoundland, where tuition fees are less than half those of Nova Scotia. A recent study conducted by the Memorial University Faculty of Education found that since the tuition fee freeze was introduced in 1999 there has been a 1,079% increase in the number of Nova Scotians studying at MUN.
Inadequate post-secondary education funding has resulted in tuition fee increases of over 230% since 1992. Those who receive government assistance or private bank loans face average debt loads of $28,000, with many debts over twice that figure. Over the previous few years, the federal government has made some progress in increasing access to post-secondary education, both through the increase to the Canada social transfer and the introduction of a national grants program. However, there is much work to be done to increase accessibility to post-secondary education in this country.
Our first recommendation is that the government adopt a post-secondary education act. At a time when over 70% of new jobs require a degree or a diploma, it is crucial that we have a national vision and framework.
A post-secondary act--similar to the Canada Health Act--would clarify the federal government's shared role in ensuring that billions of federal dollars transferred to the provinces each year are spent on post-secondary education and that education is a right for everyone in Canada, regardless of their socio-economic circumstances. Although education is a provincial jurisdiction, not unlike health care, the federal government has a clear role to play in providing funding for post-secondary education as well as student financial assistance. In order to achieve this worthwhile goal, the federal government should work together with the provinces to implement a national post-secondary education act.
Our second recommendation is to expand the value and quantity of the Canada student grants by reallocating the current funding for ineffective education-related tax credits and savings schemes. For the past decade, the federal government has spent billions on back-ended assistance through the registered education savings program and the Canada education savings grant, as well as education-related tax credits. In addition to having little proof that these measures actually increase access to post-secondary education, uptake for these programs is predominantly by families with higher income levels.
In 2009-10 alone, the federal government spent $2.5 billion on these programs. This exceeds the total annual lending of the Canada student loans program by $400 million. By reallocating the funding, the federal government could eliminate the need for students to borrow from the CSLP until 2025.
Fall 2010 saw student debt hit an all-time high of approximately $15.3 billion. The debt burden faced by students is substantial and unsustainable and has reached a crisis point. Student debt has increased in almost every jurisdiction, with the exception of Newfoundland and Labrador. Here, student debt has been lowered through an expansion of the provincial grants program that now provides $70 in grants per week of study. This was accomplished while the post-secondary education system experienced an overall increase in enrollment and the province experienced a decrease in population.
If the federal government wants to seriously tackle student debt in Canada, it need look no further than the example set by the policies of the Government of Newfoundland and Labrador: expand the Canada student grants program.
Our final recommendation is to expand the number of Canada graduate scholarships by $75 million over three years, consistent with average program growth since its creation in 2003. Technology and innovation play a central role in the development of Canada's economy. In Newfoundland and Labrador, the volatility associated with a resource-based economy has highlighted the need for diversity and innovation.
Universities, and particularly graduate students, play an important role in the development of innovation and cutting-edge research. Graduate students are generating a significant portion of Newfoundland and Labrador's new and innovative social and economic ideas, products, and methods. Financial hardship affects the quality of research performed by graduate students, who are under stress and forced to shorten their field work, forego publishing and conference presentations, and rush the writing stage of dissertations.
As an addendum to our submission, I would like to point out that our national organization, the national aboriginal caucus of the federation, and several aboriginal and non-aboriginal organizations alike, have all recommended that the federal government eliminate the 2% cap on the post-secondary student support program. Students in Newfoundland and Labrador and across the country see this as an indefensible policy that is harmful to first nations and Inuit communities and to the economic well-being of the country. The current funding path on the PSSSP has prevented thousands of aboriginal students from attending post-secondary education institutions.
In conclusion, the lack of federal leadership in addressing increasing tuition fees and chronic underfunding has resulted in significant lost opportunity costs to our country. For every Canadian shut out of post-secondary education, the costs of health care, employment insurance, social assistance, and public safety increase, while the tax base is reduced at the same time.
The OECD estimates that the economic return on investing in post-secondary education is $1.63 for every dollar the federal government spends. Simply put, our government cannot afford to continue to underfund our post-secondary education system.
Thank you. I look forward to any questions the members of the committee may have.