Albertans may not realize it, but we make significant investments in higher education for the future success of this province. For every full-time domestic student enrolled in a program at a college or university in Alberta, the province gives institutions ~$16,000. While this may sound significant, Alberta ranks second-to-last in GDP-ratio spending amongst Canadian provinces. This begs the question – what are we doing to protect the Alberta Advantage for the next generation?
Alberta rightfully touts itself as the heart of opportunity in Canada. The Alberta Advantage offers opportunity for success for entrepreneurial individuals willing to work hard and make sacrifices. Higher education also promises to provide upward economic mobility for those willing to put in the work. However, Albertans don’t often think about the portion of their tax dollars that go to support our robust post-secondary system. If we think about investing in our students the way we think about investing in business start-ups, the problem becomes clear.
As start-ups do, students forgo the immediate returns associated with entering the workforce for investing in the long-term gains of professional skills and experience development. If taxpayers are investors in this enterprise, are we obtaining our desired returns?
Current reports suggest these investments are struggling to stay afloat. According to students, the affordability crisis has caused an acute strain that is hitting them hard. Since 2018, many post-secondary institutions in Alberta have raised tuition by 25-30% with some programs doubling in tuition. Overall, average undergraduate tuition cost has risen by at least $10,000 over the original cost of the program when they first entered just four years ago.
Post-secondary funding is an investment in human capital that pays clear dividends for everyone in Alberta. University graduates out-earn high school grads by almost $30,000 per year. Over a lifetime of paying taxes, the $16,000 per year in funding received during the post-secondary years is returned many times over.
However, current financial pressures are hitting students hard. A recent report by the University of Alberta Grad Student Association highlights results of these strains:
- 40% of graduate students are considering leaving their programs (10% higher than the rest of Canada),
- 30% use food banks,
- over 60% pay more than the Edmonton average for rent.
The key factor in our investment in students is their ability to repopulate the workforce and maintain Alberta as a world-class place to live from birth to retirement. With persistent skills shortages, fewer young people in the workforce, and a trajectory that will have seniors outnumber youth by 2:1 in the next decade, we need to do more to ensure students are graduating, and our investments are seen through to completion.
At current rates of government spending, every student who does not complete their program represents ~$16,000 per year lost. Increased numbers of students considering leaving their programs, paired with Alberta’s low post-secondary attainment rate, indicates more needs to be done to ensure returns on our investments.
There are many straightforward approaches that can help make this happen. Increasing targeted financial aid, specifically loans that are fully or partially forgiven upon the completion of a program could help students complete their studies with a reduced fear of years of student loan repayments. Developers could also be incentivized for affordable housing projects in close proximity to academic institutions.
Nobody wins when students can’t succeed. When they are unable to complete their programs, our hard-earned money used to support them is lost with their potential. If we think of students as our investments, more needs to be done to secure their success. Our students are telling us they need help, so it’s time to step up. Let’s review our investments, and ensure we are building an Alberta that continues to live up to its reputation.
