Back to school - the $1.3 million myth

OTTAWA, Sept. 1 /CNW Telbec/ - The claims made in a statement issued by the Association of Universities and Colleges of Canada (AUCC) yesterday that university students will gain over $1 million in lifetime earnings after graduation, greatly exaggerates the returns most students can expect from a post-secondary degree. However, students echo the AUCC's call for more post-secondary education funding to reduce tuition fees and other costs.

"A post-secondary degree is a necessity that gives graduates a foot-in-the-door," said David Molenhuis, National Chairperson of the Canadian Federation of Students, "not a guaranteed one million dollar earnings bump."

The claim that university graduates will earn over a million more than non-graduates is greatly exaggerated. It fails to take into account substantial disparities amongst graduates and the substantial investment of time and money required to get a degree.

Economist Hugh MacKenzie, an expert on post-secondary education, found that for one-quarter of university graduates the net value of a degree is actually negative, meaning that annual earnings are less than those with only a high-school diploma.

"Record high tuition fees are already shutting many Canadians out of post-secondary education," added Molenhuis. "Students have long called for tuition fee reductions and are happy to see the AUCC calling on the government for increased funding to reduce the cost of education."

At an average of over $5,000 per year, tuition fees in Canada are at a record high. Total student debt owed to the federal government surpassed $13.5 billion this summer.

The Canadian Federation of Students is Canada's largest student organisation, uniting more that one-half million students in all ten provinces. The Canadian Federation of Students and its predecessor organisations have represented students in Canada since 1927.

For further information:

David Molenhuis, National Chairperson: 613-232-7394