Higher Education in Canada: Possibilities and dilemmas, or choices and perspectives

According to a report published by the Organization for Economic Cooperation and Development (OECD) in 2014, Canada is first in the world for highest number of people between the ages of 25 and 64 with a post-secondary degree, at 52%. The OECD report also states that compared to people with only a high school diploma, those who are university educated in Canada earn about 60% more, and those with a college education, 13% more.

Approximately 30% of Ontarians have higher education, however after a 15-year rising trend, the number of post-secondary students in Ontario is falling. The greatest decreases have been noted in schools for the arts, as well as at universities outside of Toronto.

Besides domestic students, many international students come to Canadian universities. Canada is sixth in popularity in the world for international students, behind the United States, Great Britain, Germany, France, and Australia.

And while the number of domestic students is decreasing, the number of international students is on the rise. Over the last 10 years, the number has increased by almost 100%. In 2015, there were 264,000 students studying at Canadian universities, of whom 32% were from China, 17% from India, 7% from France, 4% from the United States and South Korea, and a small number from Iran, Brazil, Saudi Arabia, Nigeria, and Pakistan. A fifth of these students studied in Ontario. Canada receives around $7 billion annually from international students.

Just as foreign students come to Canada, so do slightly fewer Canadian students study abroad. According to UNESCO’s project ATLAS, in 2014, there were almost 50,000 Canadian students studying at different institutions of higher education around the world. Around 60% of them were in the United States, 14% in Great Britain, 8% in Australia, and 3% in France. It is interesting to note that at this moment, there are around 11,000 Canadian students studying medicine abroad, compared to slightly more than 3,000 in medical programs in all of Canada.

It is also interesting to note that Canada is second highest in the world for the cost of higher education, right behind the United States at $23,300 USD per student, compared to the average of $14,000 USD in other OECD countries.

Even though the majority of us believe that in the case where a family earns an above-average income, the question of who pays for the higher education and expenses of a young person is a question of personal choice, but there is a law that regulates that in the case of disparity or divorced parents. Within the scope of family law, there are regulations similar to the “Guide for child support” and “Laws of divorce,” according to which a child above the age of 18, who is unmarried, lives with his/her parents, and is studying, has a right to receive financial aid from both parents, at least for the first level of higher education. Even in cases where the child receives student loans, the parents are still obliged to contribute financially. In terms of the children, they are also required to participate in payments, although they are not required to work during the school year, but rather only during breaks.

Even the best scholarships only give a maximum amount of $9,000 per year, which is still $3,000 short of the annual tuition fees for engineering or business. They are very few and hard to get.

In order to lessen the financial burden of higher education for both parents and students, it is recommended to begin saving for higher education early and systematically. Registered education savings plans (RESPs) can be opened right after a child’s birth, and the money can be used at any institution of higher education in the world. In Canada, the government contributes up to $500 annually to these kinds of savings plans. (You can read more about these plans in SAN Issue 6, pages 30-31)

For those who did not manage to save, besides the option of paying in full, banks also offer student lines of credit at low interest rates, or government grants for low-income families. However small the interest rate, the debt accumulated over at least four years of study is not insignificant, and the loan must begin to be paid back six months after graduation: a period in their lives where young people have starting salaries, the lowest in their careers with which they must also live independently and start saving for the future.

Regardless of student loans, it is recommended that students work over the summers in order to lower their student debts. Campuses themselves offer many jobs to students to help them lower the cost of studying, such as student residence assistants, administrative positions in student centres, receptionist jobs, or teaching assistantships in upper years.

Last year, the Ontario government introduced new benefits for funding students from low-income households. Although newspaper headlines spoke of them to the tune of “free tuition,” post-secondary education is still not free, as it is in many European countries. The decision was made after analyzing the statistics of who studies in Ontario. Around 70% of the students come from high-income homes (over $180,000 per year), whereas only around 20% come from very low-income homes (less than $10,000 per year). With a newly approved budget, the Ontario government began to offer aid to cover the costs of higher education to around 70% of students from families making less than $50,000 a year, that being an average of $6,160 per year which only covers a years tuition of a program in general arts or sciences.

Canadian universities are generally ranked highly: according to the 2016 edition of QS World University Rankings, Canada has four universities among the top 100 in the world: University of Toronto, McGill University, University of British Columbia, and University of Alberta.

Higher education is not obligatory, but rather an investment in one’s future. It is always questionable whether the money will pay off or whether it is even possible to predict which careers will be desirable at the moment you get your diploma.

The first step is to finish high school, which is not obligatory in Canada, and the difference in the number of people with only secondary education varies from province to province. In Ontario, the number of young people with only a high school diploma rose by an unbelievable 15%. The job market in Canada is currently offering a great number of attractive jobs for which this level of education is enough, such as jobs in construction, mining, manufacturing, sales, and agriculture, and it looks like this trend with maintain itself in all of Canada in the coming period.

For those young people who would like to continue their education at university or college after finishing high school, they must pick the right prerequisite courses even in high school. The minimum grade average to be accepted to their preferred university or college goes up every year.

According to the predictions of Canadian experts, the coming period foresees a few shifts that should be considered when it comes time to pick one’s future education or potential profession. The manufacturing sector is on the rise, along with the energy and machine industries, who are expected to continually add jobs to the market. Depending on the source, data can be found to show positive trends in the sectors of construction, health, urban planning, engineering, software development, science, trades, and many more. A big issue will remain the balance between the expertise of young people and the realistic positions that are offered on the market.

Top 10 starting salaries in Canada in 2012 (Globe & Mail):

1. Family doctor - $100,000
2. Dentist - $90,000
3. Petrochemical engineer - $86,220
4. Data analyst - $83,250
5. Lawyer, partner in a big firm - $85,550
6. Website developer - $80,000
7. Mobile app developer - $72,500
8. Chemical engineer - $72,407
9. Financial controller - $72,407
10. Lawyer, partner in a medium firm - $70,000

Sources: Workopolis, CACCE, and Survey of Canadian Lawyers

One should focus on jobs that are needed at this moment. When choosing what to study, one should always consider that with the development of technology, jobs become highly specific, regardless of level of education. Added education and training will contribute to the development and specialization of experts who are able to adapt to advancement and who have multiple skills. The generation of young people who is currently choosing which educational or career path to take has, in some ways, a different way of thinking than previous generations: their great advantages are the possibilities of perception and communication, individual specialization, and all this as a part of the current global momentum.

The competition is great, and there are many—perhaps even too many—possibilities. What should you decide? There are a few things you should keep in mind from the very beginning. They seem simple, but in many cases, are not: individual focus, a financial plan, and most importantly, personal affinity. There are many resources available and they should be used. Some wrong calls are inevitable, but in the end, that is the best way to learn.

Individual focus, a financial plan, and personal affinity are still the most important elements for making the best decision.