CFS (2009) Canada's Education Action Plan

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    Canadian Federation o Students Educatio Actio Pla

    BRITISH COLUMBIA

    University of British Columbia Students UnionOkanagan

    Broadway Campus Students Union ofVancouver Community College

    Camosun College Student Society

    Capilano Students Union

    Douglas Students Union

    Downtown (City Centre) Students Union ofVancouver Community College

    Emily Carr Students Union

    Kwantlen Student Association

    College of New Caledonia Students Union

    North Island Students Union

    Northwest Community College Students Union

    Okanagan College Students Union

    College of the Rockies Students Union

    Selkirk College Students Union

    Simon Fraser Student Society

    Thompson Rivers University Students Union

    Vancouver Island University Students Union

    University of Victoria Students Society

    PRAIRIES

    Alberta College of Art and Design StudentsAssociation

    Brandon University Students Union

    Graduate Students Association of the Universityof Calgary

    First Nations University of Canada StudentsAssociation

    University of Manitoba Students Union

    University of Manitoba Graduate StudentsAssociation

    University of Regina Students Union

    Association tudiante du Collge universitairede Saint-Boniface

    University of Saskatchewan Students Union

    University of Saskatchewan Graduate StudentsAssociation

    University of Winnipeg Students Association

    OnTARIO

    Algoma University Students Union

    Brock University Graduate Students Association

    Carleton University Students Association

    Carleton University Graduate Students

    AssociationAssociation tudiante de la Cit collgiale

    Student Association of George Brown College

    Glendon College Student Union

    University of Guelph Central Student Association

    University of Guelph Graduate StudentsAssociation

    Lakehead University Student Union

    Laurentian Association of Mature and Part-timeStudents

    Laurentian University Graduate StudentsAssociation

    Laurentian University Students GeneralAssociation

    Association des tudiantes et tudiantsfrancophones de lUniversit Laurentienne

    McMaster University Graduate StudentsAssociation

    Nipissing University Student Union

    Ontario College of Art and Design Student Union

    Student Federation of the University of Ottawa

    Graduate Students Association des tudiant(e)sdiplm(e)s de lUniversit dOttawa

    Queens University Society of Graduate andProfessional Students

    Ryerson Students Union

    Continuing Education Students Association ofRyerson

    Saint Paul University Students Association

    University of Toronto at Scarborough CampusStudents Union

    University of Toronto Graduate Students Union

    University of Toronto Students Union

    University of Toronto at Mississauga StudentsUnion

    Association of Part-Time UndergraduateStudents of the University of Toronto

    Trent University Central Student Association

    OnTARIO

    Trent University Graduate Student Association

    University of Western Ontario Society ofGraduate Students

    Wilfrid Laurier University Graduate StudentsAssociation

    University of Windsor Students Alliance

    University of Windsor Graduate Students Society

    University of Windsor Organisation of Part-timeUniversity Students

    York Federation of Students

    York University Graduate Students Association

    QUBEC

    Concordia Student Union

    Concordia University Graduate StudentsAssociation

    Dawson Student Union

    Post-Graduate Students Society of McGillUniversity

    MARITIMES

    Cape Breton University Students Union

    Dalhousie Association of Graduate Students

    Holland College Student Union

    University of Kings College Students Union

    Mount Saint Vincent University Students Union

    University of New Brunswick Graduate StudentsAssociation

    Student Union of NSCAD University

    University of Prince Edward Island Student Union

    University of Prince Edward Island GraduateStudent Association

    Association gnrale des tudiants de

    lUniversit Sainte-Anne

    nEWFOUnDLAnD AnD LABRADOR

    Grenfell College Student Union

    Marine Institute Students Union

    Memorial University of Newfoundland StudentsUnion

    Graduate Students Union of the MemorialUniversity of Newfoundland

    College of the North Atlantic Students Union

    With over 600,000 members in 85 students unions and all tenprovinces, the Canadian Federation o Students is the voice

    o post-secondary students in Canada. Founded in 1981, theFederation represents students at the college, undergraduate andgraduate level, and students who study both part and ull-time.

    The Canadian Federation o Students

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    2 Educatio Actio Pla Canadian Federation o Students

    Over the past year Canadians have borne witness to some othe greatest economic uncertainty in our history. As the global

    economy ell into a deep recession, many Canadians were laid oor unable to continue to work ull-time, while others let the labourmarket, retiring early or heading back to school.

    In hard times Canadians look to their government or leadership.In response to this demand the ederal government embarkedon one o the most expensive spending programs in Canadashistory. The 2009 budget included over $50 billion in stimulusspending. Despite this massive investmentarguably the biggestre-engagement o the ederal government in decadesthere wasnothing oered to make college and university more aordable

    or help the thousands o students and graduates with mortgage-sized debt loads.

    It is time or bold leadership. Transitioning to the economyo tomorrow means investing today in students, colleges anduniversities, and post-secondary research. Ensuring a justtransition means developing a system where no Canadian is letbehind, regardless o their race, ethnicity or social status. This alsomeans ensuring that Canadas treaty responsibilities are ulflledand that Aboriginal peoples are able to access our institutions ohigher learning.

    The ederal government has a long history o involvement in theunding o post-secondary education. Canadian universities andcolleges have beneftted rom more than six decades o ederalunding, including student loans and grants, and direct and indirecttransers to the province. This kind o national leadership will becritical in steering the economy out o recession while protectingand empowering vulnerable Canadians.

    Canadas Education Action Plan

    06 | Taking responsibilityNational vision or higher educ

    10 | Opening doorsImproving student fnancial aid

    12 | Towards innovation

    Investing in Canadians

    14 | Meeting obligations

    Funding or Aboriginal educati

    02 | Education Action Plan Introduction

    03 | Leadership in higher educationPolling results

    04 | Key recommendations

    05 | Students today

    Running low on options

    INTRODUCTION RECOMMENDATIONS

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    Polling

    Canadians Want Leadership

    Polling highlights

    Investing in education and researchis a top priority or Canadians

    Investments in education andresearch are seen as an importantway to stimulate the economy

    Lowering tuition ees and reducingstudent debt are top priorities

    A vast majority believe tuition ees

    should be rozen or reduced

    Canadians believe that qualiedcitizens cannot aord to go to schooland as a result are not enrolling

    Canadians are concerned with cutsin research grants

    70%

    think tuition eesshould be rozen orreduced

    Fees should be reduced

    Fees should be rozen

    Fees should be increased

    67%are concerned aboutCanadas ability to attractand retain university

    researchers

    Very concerned

    Somewhat concerned

    Neither

    Somewhat unconcerned

    Very unconcerned

    61%believe there are manyqualifed people who dont

    have the opportunity to goto college or university

    Many do not have the opportunity

    Most people have the opportunity

    No opinion

    Fund inrastructure to create jobs

    Invest more in education & research

    Reduce taxes and the debt

    Increase EI benefts

    Bail out struggling businesses

    Negotiate more ree trade deals

    Most important additionalstimulus investment

    77%say the reason qualifed

    people do not have theopportunity is the high cos

    It is too expensive

    Family responsibilities

    Arent enough student spaces

    Other reasons

    These results are rom a Harris/Decima random telephone survey o 2,000adult Canadians conducted between April 2 and April 13, 2009. The poll wascommissioned by the Canadian Association o University Teachers and theCanadian Federation o Students. National results are considered accuratewithin 2.2 percentage points, 19 times out o 20.

    16 | A worthwhile investment

    Costing o recommendations

    17 | Reerences

    CONCLUSION AND NOTES

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    4 Educatio Actio Pla Canadian Federation o Students

    Take responsibility: create a national vision or post-secondary educationThe ederal government should develop a post-secondary education cashtranser payment or the purpose o reducing tuition ees and improvingteaching, learning, and research inrastructure at colleges and universities. Thetranser should be guided by the principles set out in a ederal Post-SecondaryEducation Act, developed in cooperation with the provinces.

    Track success: measure results

    Increase unding or Statistics Canadas branch or the collection and analysiso post-secondary education statistics.

    Open doors: reduce student debt

    Increase the value and number o up-ront grants available to students byredirecting unds currently used on education related tax credits and savingsschemes into upront student grants.

    Towards innovation: unding or research and graduate studies

    Increase graduate student-specic unding by doubling the number o CanadaGraduate Scholarships available, to be distributed proportionally among theresearch councils according to enrolment gures, and allowing graduate

    students to access grants under the Canada Student Grants Program.

    Meet our obligations: Aboriginal education

    Remove the unding cap on the Post-Secondary Student Support Program andincrease unding to meet the needs o all Aboriginal post-secondary learners,including allocating unding to clear the existing backlog.

    Key Recommendations

    KeyR

    ecommendations

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    Students Today

    Students today: running low on optionsStudents today are struggling to aord their education more than any othergeneration in Canadas history. Record high tuition ees combined with the

    eects o the global recession have taken a high toll on students and theiramilies with the worst o it borne by vulnerable groups including those withdisabilities, people o colour and Aboriginal peoples.

    Summer unemployment

    This past summer saw the second highest level o student unemploymentsince Statistics Canada started collecting data in 1977, with both July andAugust breaking all previous records. Those students that did nd jobsaced lower wages and ewer hours.

    Running out o money

    With tuition ees rising and little money saved rom summer work, manystudents ear they will not make it through the year. 43 per cent o newcollege and university students and 35 per cent o returning studentsthink that they will run out o money by Christmas, while hal o all post-secondary students expect to be out o money beore the end o thesecond semester.

    Cutting back, worrying about their uture

    Students are anxious about their nances and rethinking uture plans.Over one th o students plan to accept work outside o their area ostudy; almost 15 per cent plan to relocate to nd a job and over ortypercent have cut back their spending.

    Last year, beore the worst o the recession hit, students already reportedspending less on ood; not buying all the books they needed; and paying

    their tuition late, incurring additional ees.

    5%

    2007

    10%

    15%

    20%

    2008 2009

    Student unemployment in July

    Working during the year

    This year almost 8 in 10 college and university students plan to work while inschool, with almost hal depending on it to make ends meet. With one o theworst job markets in recent memory, many students will be let scrambling,unable to fnd the job they were depending on to get them through the year.

    While working a small number o hours during the school year can bebenefcial, high ees and hard times are orcing many students to takeon more than they can handle. This is especially worrying given researchindicating that working can be negatively correlated with academic success.

    Roughly 60 per cent o university students who work during the course otheir studies report a negative impact on their academic perormance.

    Full-time students who workduring the school year

    0%

    1976

    10%

    20%

    30%

    2008

    40%

    50%

    Students reportingcutting back on essentials

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    6 Takig ResposibilityCanadian Federation of Students 2009

    Taking Responsibility:A National Vision or Post-Secondary Education

    Tuition Fees Are a Barrier

    The responsibility or nancing post-secondary educationhas been increasingly downloaded onto amilies since theederal unding cuts o the mid-1990s. Between 1986 and2006 government grants as a share o university operatingrevenue have plummeted rom 80 per cent to less than 57per cent. As a direct result, the share o university operatingbudgets unded by tuition ees more than doubled duringthe same period (14 to 29 per cent) . Today, tuition eesare increasing more rapidly than any other cost aced bystudents (Figure 1) and ar aster than infation (Figure 2).

    Tuition ees are blind, both to the actual nancial resourceso students and their amilies and to the uture earnings ograduates. In spite o this, the increased earnings o thosewith a post-secondary degree has oten been used as anargument against tuition ee regulation. Some organisationsmake the dubious claim that university graduates will earnan additional $1 million during their lietime as a result otheir education credentials. This mythical $1 million gurebeen thoroughly debunked; in reality, the vast majority ouniversity and college graduates are middle-income earners.In act, a university or college education is virtually a pre-requisite or participation in todays economy.

    Let the Income Tax System Do Its Job

    The income tax system, not user ees, should be counted

    on to nance post-secondary education. Without creatingnancial barriers and burdening students with massive levelso student debt, progressive income taxes recover the costo an individuals education many times over, while alsosupporting the post-secondary system or the upcominggeneration. The progressive tax system ensures that thestatistical outliersunusually wealthy and unusually poorgraduatesare taxed in ways that are air and refective otheir income.

    Residency Should Not Determine Access

    Without a national vision or post-secondary education, each

    province is let to set its own policies or the nancing opost-secondary education. As a result a students residencyhas become an important actor in determining whether astudent can aord to attend college or university. Studentsstudying or their bachelor degree in Newoundland andLabrador are charged less than hal the tuition ees asstudents in Ontario. A law student at McGill University inQubec pays roughly $2,000 in tuition ees, while the samestudent studying at the University o Toronto would payalmost ten times as much.

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    Canadian Federation o Students Educatio Actio Pla

    Wanted: National Leadership

    Education costs are a source o signicant unease amongCanadians. According to a recent Harris/Decima poll,Canadians rank tuition ee reductions as the top priority orgovernment investment in education. The same poll alsoound that 69 per cent o Canadiansincluding a majorityo Qubec residentswant the ederal government toexercise more control over transers to the provinces orpost-secondary education.

    Despite substantial investment in post-secondaryeducation in recent years, the ederal government hasactually done very little to ensure that these investmentswill have the desired impact. A dearth o regulationsgoverning the Canada Social Transer (CST) is only asymptom o a broader problem: the ederal governmenthas never outlined a vision or how to keep post-secondaryeducation in Canada both aordable and cutting-edge.Without such a vision, ederal investments will continue tobe undermined and devalued.

    Transers or Post-Secondary Education

    The 2007 ederal budget contained the largest increaseto core transer payments or post-secondary education inteen years. Although this is the largest increase in recentmemory, cash transers or post-secondary educationare still roughly $1 billion short o 1992 levels, when

    accounting or infation and population growth. To be atthe level o unding in 1992 (measured as a percentage ogross domestic product), the ederal government shouldbe allocating approximately $4.4 billion per year in cashtransers or post-secondary education$1.2 billion morethan what is currently budgeted (Figure 3).

    Despite historic increases to ederal unding or post-secondary education, the ederal governments CSTinvestments are not reaching amilies. Without bindingagreements, provincial governments are under noobligation to ensure ederal monies transerred to them

    benet students. For example, the Government o BritishColumbia cut unding to universities in 2008 by $50million, the same year that the BC government receivedover $110 million in new post-secondary unding romthe ederal government. Without any binding agreementsor legislated guidelines, this type o displacement willcontinue to handicap colleges and universities.

    A National Vision

    Figure 1: Studet costs

    Figure 3: Federal cash trasers or

    post-secodary educatio (% o GDP)

    Figure 2: Tuitio ees: actual vs. ifatio

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    8 Educatio Actio Pla Canadian Federation o Students

    Towards a Post-Secondary Education Act

    There is a consensus in the post-secondaryeducation community that the current design

    o transer payment mechanisms is insucientto meet ederal objectives or post-secondaryeducation.

    The ederal government has a responsibility toensure equality o access to post-secondaryeducation in every province. Althoughprovincial politicians are quick to declarepost-secondary education the exclusivedomain o their legislatures, they are onlypartially correct. A distinction must be drawnbetween jurisdiction and responsibility.

    Post-secondary education is constitutionallywithin the legislative jurisdiction o provincialgovernments. However, this assignment olegal and legislative authority should not beconused with the responsibility o all levels ogovernment to coordinate their behaviour inorder to build the best system o post-secondaryeducation possible.

    I the ederal government wants to play a rolein reducing socioeconomic inequality andincreasing global competitiveness, provincial

    coordination is not just an option, it is a necessity.The reductions in ederal spending describedin previous sections are only possible becauseo a lack o ederal leadership.

    Historically, Canada has a solid record o ederal-provincial collaboration when there is ederallegislation to lend structure to the relationship.Canadas Medicare system is a living exampleo how governments can prioritise the needso Canadians over their own jurisdictionalposturing. With the increase in core unding

    announced in the 2007 ederal budget, thenext logical step or the ederal governmentis to institute ederal legislation to governthe unding set aside or post-secondaryeducation. Although the increased undinghas been earmarked or post-secondaryeducation, there is nothing holding provincialgovernments to spend the increased unding

    on post-secondary education (as seen in theBritish Columbia example).

    The Canadian Federation o Students and the

    Canadian Association o University Teachers(CAUT) both recommend the adoption olegislation or other binding orms o agreementthat would establish conditions or ederal post-secondary education transers. These conditionsmust commit the provinces to upholdingprinciples similar to those o the CanadaHealth Act: public administration, aordability,comprehensiveness, democratic governance,and academic reedom. In return or upholdingthese principles, provincial governments would

    receive increased and predictable unding romthe ederal government.

    Provincial premiers have signalled that they areinterested in exploring urther collaborationwith the ederal government to improve theaordability and quality o post-secondaryeducation. Most recently, all provincialgovernments have signed onto the ederally-initiated Service Delivery Vision or integratingthe provincial and ederal student loan andgrants programs.

    The ederal government must use this willingnessto reach an agreement on transers or post-secondary education, in part by restoring cashtranser levels to 1992 levels. Most importantly, theederal government and provincial governmentsshould establish long-term objectives, includingreducing tuition ees.

    Recommendation #1

    The ederal government should developa post-secondary education cash transerpayment or the purpose o reducing tuitionees and improving teaching, learning, andresearch inrastructure at colleges anduniversities. The transer should be guidedby the principles set out in a ederal Post-Secondary Education Act, developed incooperation with the provinces.

    A National Vision

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    Recommendation #2

    Increase unding or Statistics Canadas branch or the collection and analysis o post-

    secondary education statistics.

    Although provincial and ederal governments spend over $35 billion per year on post-secondary

    education, we do not collect adequate inormation to ully analyse the eectiveness o that

    spending. A 2006 comparative international report by the Organisation or Economic Cooperation

    and Development (OECD) listed Canada as missing or 57 o the 96 indicators used to compare

    countries.

    In order to make evidence-based decisions about policy and priorities or post-secondary education

    and research to improve the quality and equality o access we need proper and complete inormation

    about the post-secondary education, research and training system. This may seem like an

    elementary observation, but the ederal government is neglecting its responsibility to collect and

    analyse proper inormation about education participation, administration and outcomes. Data on

    Aboriginal students and colleges is particularly scarce.

    Tracking success: missing

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    10 Educatio Actio Pla Canadian Federation o Students

    Canadian amilies are making extraordinary sacrices to prepare themselves oran evolving workplace. Past government decisions at the ederal and provinciallevels are orcing students and their amilies to take on more education-relateddebt than any previous generation during a time when earnings or the majorityo amilies have been stagnant or the past twenty years.

    Skyrocketing tuition ees and loan-based nancial aid have pushed student debtto historic highs. Monies owed to the ederal government alone or studentloans surpassed $13 billion in January 2009. This year approximately 386,000students in Canada will be orced to borrow to nance their education.

    Student debt levels have been linked to lower degree completion levels andreduced likelihood o continuing studies beyond a bachelors degree orcollege diploma. Heavy debt loads are also a negative actor in an already weakeconomy. Student loan obligations push new graduates to take lower payingwork in order to get a oot in the door, and reduces their ability to start aamily, work in public service careers, invest in assets and build career-relatedvolunteer experience.

    Debt and Accessibility

    Tuition ees and other nancial considerations oster an aversion to debt thatprevents many students (and parents) rom making post-secondary education a

    priority. Debt is responsible or lower levels o university and college completion,not to mention nancial stress that is disproportionately borne by those romlow-income backgrounds. Ater graduation, student debt perverts careerchoice, especially or proessionals, which in turn aects certain populationsaccess to health care and legal aid. Studies o medical and law students oundthat they expect to seek higher paying jobs in elds or regions that are notnecessarily their rst choice. Student debt appears to be driving committedyoung doctors away rom amily practice and young lawyers away rom thepublic service and/or pro bono work.

    Opening Doors:

    a new ormula or student nancial aid

    Student debt loadshave never beenhigher... peoplegraduating with$30,000 in student

    loans on top o $5,000in credit card debt...The result is manystudents all into a holethey cant easily climbout o.

    Laurie Campbell,Executive DirectorCredit Canada

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    Canadian Federation o Students Educatio Actio Pla

    Debt aversion is the personal calculation that thesacrice o debt accumulation and repaymentare not worth the return rom post-secondaryeducation. Research has ound that debt aversion isstrong among non-attendees in Canada. Accordingto Statistics Canadas Youth in Transition Survey, 70per cent o high school graduates who do not go onto post-secondary education cite nancial reasonsas the main actor. One in our o those cite debtaversion as their principal deterrent.

    It has been determined that students rom racialisedcommunities and lower income backgrounds, as wellas single parents are more likely to hold negativeeelings about taking on student debt. Two thirds ostudents who decide against enrolling in universitysay that student debt aected their decision.Canadian research suggests that debt levels havea direct impact on success in post-secondaryeducation, with those with higher debt levels beingar less likely to complete their degrees.

    Canada Student Grants

    In all 2009, the Millennium Scholarship Foundationwas replaced with a publicly accountable ederalgrants program. This was an important rst steptowards tackling student debt. In order to meaningullyreduce debt, a larger investment in up-ront grants isrequired.

    The non-reundable education and tuition ee taxcredits have been the most expensive ederal taxmeasures or post-secondary education. Looking

    Recommendation #3

    Increase the value and number o up-rontgrants available to students by redirectingunds currently used on education relatedtax credits and savings schemes into uprontstudent grants.

    at the most recent data available, the total cost othe ederal governments tax credits and savingsschemes is almost $2.5 billion.

    This massive public expenditure, i oered as uprontgrants, could nearly eliminate the need or studentsto borrow. The Canada Student Loans Program willlend approximately $2.2 billion during the 2009-10year. I the amount o money the ederal governmentspent on tuition ee and education tax credits each

    year had been simply shited to the ront-end inthe orm o grants through the Canada StudentLoans Program, student debt owed to the Federalgovernment could more than be eliminated.

    Despite their large price tag, ederal tax expendituresare a very poor instrument to either improve accessto post-secondary education or relieve studentdebt, since everyone who participates qualies ortax credits regardless o nancial need. The ederalgovernment is diverting vast sums o public undingwhere they are not necessarily required.

    $37,000

    $2,195,568,000

    $2,421,000,000

    average debt at graduation among those

    with both private and government loans at

    the Bachelors level.

    Amount that the Canada Student Loans Program

    expects to lend or the 2009-10 year.

    Approximate cost o education tax credits

    and savings schemes or the 2009-10 year.

    Loans disbursed by the Canada Student Loans Program,less those that have been repaid, is increasing by $1.2million dollars a day, or more than $430 million per year.

    On January 21, 2009, the amount o student loans owedto the Government o Canada surpassed $13 billiondollarsmore than the debt o some provinces andapproximately the cost o the Aghanistan mission to-date (January 2009). Worse, the $13 billion fgure doesnot include approximately $58 billion in provincialstudent debt or personal debts such as credit cards,lines o credit, and amily loans.

    Student Financial Aid

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    Funding Graduate Studies

    Graduate research is the oundation o a knowledge based economy.Investing in graduate studies osters innovation over the long term andmakes Canada more competitive internationally. Canadas students,industries, and economy all stand to benet rom increased undingor university research. Graduates with advanced degrees have theknowledge to respond to challenges with innovative solutions.

    Graduate studies in Canada have expanded dramatically over thelast ten years, with enrolment increasing by 37.5 per cent between1996 and 2006 (Figure 4). Despite this, there have been only modestunding increases to the granting councils and scholarships, thatmake graduate education aordable. The ederal governments lack

    o commitment to research and post-secondary education reducesboth the quality o graduate education and the return on Canadiansinvestment in university research.

    Graduate students ace many obstacles including limited undingoptions, an increasingly commercialised and restrictive researchenvironment, rising tuition ees, and high levels o student debt. Despitethe large investment o time and money, a recent study indicated thatPhD graduates earn little moreand in some instances lessthan thosewith a masters degree.

    Since the late 1990s, a number o initiatives have been undertakento bring a larger proportion o private-sector unds into the universitysystem. The government sponsored commercialisation agendainvolves direct private sector investment in university research withthe goal o creating commodiable end products. The push or thecommercialisation o university research has implications not onlyor decision-making structures within post-secondary institutions, butalso or the reporting o research results. Prot-driven objectives inuniversity research puts pressure on researchers to report resultsthat are in line with the goals o the private unding agent, therebyundermining the independence o the academy.

    Commercialised research is geared towards producing products that

    can yield short term results, with little consideration to long-terminnovation. As research money is increasingly directed this way, basicresearch and long-term innovation are undermined. Recent increasesin unding or the research granting councils, especially thoseresources dedicated or graduate students, have disproportionatelybeneted applied research programmes that are designed to pursuea commercialised agenda over basic research.

    In addition to undermining long-term innovation, imbalanced ederalunding increases geared towards market driven research programmesare leading to an unhealthy private-sector dependency on public

    Introduction

    Investing in Canadians:

    research and graduate studies

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    Canadian Federation o Students Educatio Actio Pla

    Research and Graduate Studies

    universities or research and development. This corporatesubsidy contributes directly to Canada lagging behind other

    OECD countries in our private-sectors investment in researchand development and the products those labs produce. As thistrend deepens, our private sector research and developmentinrastructure will give way to a publicly-backed universitysystem that does not have a consistent track-record o bringinginnovations to the marketplace.

    Graduate Student Funding

    Although in recent years there have been small increases tounding or the granting councils, they have never ully recoveredrom the cuts o the 1990s. While unding has also ailed to keep

    pace with the rising enrolment o graduate students, the 2009ederal budget cut $148 million rom the granting councils. Thiscame at a time when most countries were investing heavily intheir university research capacity.

    Funding or discovery-type grants in the social sciences andhumanities lags ar behind the applied sciences. Without properlevels o unding and support or graduate students, Canadasresearch and innovation capacity will continue to all behind thato other countries. An investment in graduate students will helpproduce the highly skilled workers that Canada needs to adjustto the knowledge based economy.

    Canada Graduate Scholarship (CGS) provides merit-basedunding directly to graduate students. These scholarships areadministered through the granting councils and are one o themain mechanisms or unding graduate studies. The limitednumber o scholarships available has meant that many o thebest and brightest researchers are unable to maximise theirpotential. Increasing the number o CGSs would help promotegraduate research and ensure that graduate students have theresources to ocus on their research, which will pay long termdividends or Canadas research capacity and innovation.

    Recommendation #4

    Increase graduate student-specic unding by doublingthe number o Canada Graduate Scholarships available, tobe distributed proportionally among the research councilsaccording to enrolment gures, and allowing graduatestudents to access grants under the Canada StudentGrants Program.

    Figure 4: Graduate Erollmet

    (in thousands)

    Figure 5: Retur o Ivestmeti Commercialisatio

    (in millions)

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    14 Educatio Actio Pla Canadian Federation o Students

    Aboriginal Learners

    Canadians have long seen post-secondary

    education as a way to improve our countrysstandard o living and as an important part odeveloping a more equitable society. Investmentsin post-secondary education can provide importantimprovements to the well-being o Aboriginalpeoples and communities.

    The ederal government has a moral and legalresponsibility to provide or the well-being oCanadas Aboriginal peoples, including ensuringaccess to post-secondary education. Despitetreaty and other obligations to provide access

    to First Nations peoples, resources or post-secondary education all short o meeting theneeds o Aboriginal communities.

    In 1968, the Department o Indian and NorthernAairs Canada (INAC) began providing directnancial assistance to First Nations and Inuitstudents enrolled at post-secondary institutions.These programs were clearly successul. In 1977-78, only 3,600 students received support toattend college or university; by 1999-2000, over27,000 students beneted. However educational

    attainment levels among Aboriginal peoples remainsignicantly lower than the overall population.

    Research has ound that the majority o Aboriginalpeoples have aspirations to pursue post-secondarystudies, but the leading deterrent remains nancialbarriers, particularly the lack o ederal unding orpost-secondary education.

    Post-Secondary Student Support Program

    Currently, the ederal government providesnancial assistance to status First Nations and Inuitstudents through the Post-Secondary Student

    Support Program (PSSSP). The PSSSP is meant toencourage access to post-secondary educationand alleviate the nancial barriers aced byAboriginal students by covering the costs o tuitionees, books, supplies, travel, and living expenses.

    Prior to 1992, unding was determined by thenumber o eligible students and their expenses.

    Aboriginal Education

    Meeting Obligations: Aboriginal education

    It is in everyones interestthat no Aboriginal post-

    secondary learners all between

    the cracks... the post-secondary

    education o Aboriginal youth

    who aspire to it is a matter othe highest priority or Canada.

    Report o the StandingCommittee on AboriginalAairs And NorthernDevelopment

    23%o non-Aboriginalshave a university

    degree

    8%o Aboriginalpeoples have a

    university degree

    Have a university degree

    Do not have a degree

    Have a university degree

    Do not have a degree

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    Canadian Federation o Students Educatio Actio Pla

    Between 1992 and 1997, the model shited romper-student to block unding. In 1997, increasesin unding were capped at 2 per cent annually.

    Prior to the implementation o the undingcap in 1999, approximately 27,000 Aboriginalstudents received nancial assistance. In 2006,the number ell to just over 22,000. The lack o

    unding has orced communities administeringthe unds to make dicult decisions about whoreceives unding each year. It is estimated thatbetween 2001 and 2006, over 10,500 studentswere denied unding, with an additional 2,588denied in 2007-08 alone. In addition, due tothe shortall in unding, priority is oten givento short college programs at the detriment omore expensive proessional or post-graduateprograms o study.

    According to the Assembly o First Nations, a

    total o $516 million is required to ensure thatno Aboriginal student is denied access to post-secondary education due to nancial barriers. AsINAC currently provides $300 million an additional$216 million would be required. An additional$208 million is needed to address the 13,000students that were previously denied unding.In Qubec, an additional $24 million (in addition

    Recommendation #5

    Remove the unding cap on the Post-Secondary Student Support Program andincrease unding to meet the needs o allAboriginal post-secondary learners, includingallocating unding to clear the existingbacklog.

    to $23 million to address the backlog) would berequired to meet the needs o Aboriginal students.This unding would support a total o 36,382students across Canada and 4,000 in Qubec.

    The unding disbursed through the PSSSP has aproven track record or those who can accessit. Most Aboriginal students who are able to

    access unding through the PSSSP succeed incompleting their studies and nd meaningulwork. Regardless o their place o residence, themajority o Aboriginal graduates return to workin their communities and are employed in theireld o study, achieving economic sel-relianceand helping to develop healthy and stablecommunities.

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    16 Educatio Actio Pla Canadian Federation o Students

    ProgramCost

    (million) note

    Creation o new PSE transer $ 0

    Increase to PSE transer $ 1,200 to restore unding to 1992 levels

    Increase unding or Aboriginal education $ 216to be administered through thePSSSP

    Statistics Canadas Centre or Education $ 10

    Double number o Canada GraduateScholarships

    $ 125

    Increase in up-ront grants $ 2,421sum o expenditures on tax

    credits and saving schemesEliminate textbook tax credit $ (82) redirected to upront grants

    Eliminate scholarship tax credit $ (38) redirected to upront grants

    Eliminate RESP savings scheme $ (230) redirected to upront grants

    Eliminate CESG $ (540) redirected to upront grants

    Eliminate tuition ee and education taxcredits

    $ (1,531) redirected to upront grants

    TOTAL AnnUAL InVESTMEnT $ 1,551

    OnE TIME InVESTMEnT $ 208 Clear backlog o PSSSP

    With an annual investment o less than $1.5 billionwith an additional $208 millionthe rst yearthe ederal government can dramatically reshape Canadas systemo higher education and drastically reduce student debt, create national standards,improve access or Aboriginal peoples, ensure Canada remains a leader in researchand innovation and track the eectiveness o government policy.

    Post-secondary education:a good investment

    Costing

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    ReerencesCallender, Claire. Fear o Debt and Higher Education Participation.: Universities UK, 2003.

    Callender, Claire & Jon Jackson. Callender, Claire & Jon Jackson.: London South Bank University, 2004.

    Davies, P., Slack, K., Hughes, A., Mangan, J. and Vigurs, K. Knowing Where to Study? Fees, Bursaries and FairAccess., Staordshire University and Sutton Trust (2008).

    Drolet, Marie Participation in Post-secondary Education in Canada: Has the Role o Parental Income andEducation Changed over the 1990s?., Business and Labour Market Analysis, Statistics Canada (2005).

    Hankivsky, Olena Cost Estimates o Dropping Out o High School in Canada., Canadian Council on Learning(2008).

    Hull, Jeremy Post-Secondary Education and Labour Market Outcomes Canada., Indian and Northern AairsCanada (2005).

    Kwong, Je C, Dhalla, Iran A, Streiner, David L, Baddour, Ralph E, Waddell, Andrea E and Johnson, Ian L Eectso rising tuition ees on medical school class composition and nancial outlook.CMAJ 166 (8) , University oToronto, Ont. (2002)., 1023--1028.

    Mackenzie, Hugh Funding Postsecondary Education In Ontario: Beyond The Path O Least Resistance., TheOntario Coalition or Postsecondary Education, Hugh Mackenzie & Associates (2004).

    Mandelson, Michael Aboriginal Peoples and Postsecondary Education in Canada: Ottawa., Caledon Institute oSocial Policy (2006).

    Takalo, Tuomas and Kanniainen, Vesa. Do patents slow down technological progress? Real options inre-search, patenting, and market introduction. International Journal o Industrial Organization 18 (2000):11051127.

    Money, Jobs, and Fear: Tuition report rom the OBA student division. (2) Association, Ontario Bar, eds., OntarioBar Association (2003).

    How is the downturn impaction Canadian university students?., PriceWaterhouseCoopers (2009).

    Labour Force Inormation., Labour Force Survey Program, Statistics Canada (2009).

    CAUT Almanac o Post-Secondary Education in Canada., Canadian Association o University Teachers (2008).

    Report o the International Review Committee on the Discovery Grants Program., Natural Sciences andEngineering Research Council (2008).

    Actuarial Report On The Canada Student Loans Program., Oce o the Chie Acutary, Minister o Public Worksand Government Services, Government o Canada (2008).

    Undergraduate Student Survey 2008 - Master Report., Canadian University Survey Consortium (2008).

    State o Learning in Canada Toward a Learning Future., Canadian Council on Learning (2008).

    Facts and Figures., Natural Sciences and Engineering Research Council (2007).

    No Higher Priority: Aboriginal Post-Secondary Education In Canada., Report o the Standing Committee onAboriginal Aairs and Northern Development, 39th Parliament, 1st Session (2007).

    Report on Student Debt., Canadian College Student Survey and Canadian Undergraduate Survey Consortium(2007).

    Redening How Success is Measured in First Nations, Inuit and Mtis Learning, Report on Learning in Canada2007., Canadian Council on Learning (2007).

    Census o Population., Statistics Canada (2006).

    Perceptions o First Nations Residents On-Reserve., EKOS: Ottawa, EKOS Research Associates Inc. (2006).

    38th Statistical Report (19922006)., Canadian Association or Graduate Studies (2006).

    The Impact o Bursaries: Debt and Student Persistence in Post-Secondary Education., Canada MillenniumScholarship Foundation (2006).

    Evaluation o the Post-Secondary Education Program: Regina., Indian and Northern Aairs Canada (2005).

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