Study Shows Ontario’s College and University Tuition Burdens Families

Stagnant incomes, household debt, and rising tuition means families have to make difficult choices.

Ontario’s families are forced to make some tough decisions when planning to pay college or university tuition, according to new data.

The study by the Canadian Centre for Policy Alternatives (CCPA) explores the issue and shows that many families have to shift priorities.

“Ontario families are being forced to play priority roulette,” said Erika Shaker, director of the CCPA Education Project.

“The trifecta of stagnant incomes, household debt, and rising tuition fees means that families are having to make difficult choices around the kitchen table about what to prioritize: meeting basic expenses, saving for retirement, paying down their debt or sending their kids to university.”

According to the study, a middle income earning family would pay for a 4-year-degree in 195 days, if they dedicated every single cent of after-tax earnings to education savings. In 1990, it would have only taken them 87 days.

The data also shows that if a student is lucky enough to get accepted into medicine or law, a middle income family would have to dedicate well over a year’s worth of earnings to pay the bill.

“The 2009 Ontario corporate tax cut could have rolled back tuition fees to 1990 levels, representing a reduction in tuition fees from $6,500 to $2,500 a year,” said CCPA research associate David Macdonald.

“If we implemented the reduction through the personal tax system, it would cost an average of $100/year per family to reduce undergraduate tuition fees to 1990 levels. For an annual average of $170 a family, undergraduate university tuition fees could be eliminated altogether.”