Targeted Support Best Approach for Student Debt, Op-ed

NOTE: The following is an op-ed by Tim O'Neill, author of the report, Report on the University System in Nova Scotia.

A week ago, I released my report on Nova Scotia's university system. One area where there has been agreement is that student debt is too high. I agree, and am pleased to hear Premier Darrell Dexter say that addressing student debt levels is a priority of his government.

But how does one do that?

For the past number of years, debate about rising student-debt levels and access to university education has focused on tuition fees. I think this focus has been misplaced, and it's time to look more closely at student assistance and other forms of support.

Tuition fees are only a portion of the annual costs students pay for their education. Students must also pay for books, residence fees, rent and food. Freezing or lowering tuition fees does little to limit the debt from these items.

As well, over the last 15-to-20 years, sharp increases in tuition fees across Canada have had limited impact on enrolment. There are a number of barriers to accessibility, which include costs, family background, and academic success in primary and secondary education. Student financial assistance offers a far more effective approach to targeting those students who most need support.

Equity is also an issue. When I was a senior bank executive, I couldn't think of any sound argument to justify a trades person from Guysborough County subsidizing the university education of my children. Even with Canada's progressive tax laws -- the more money you earn, the more tax you pay -- the middle class still forms the largest tax group, and so it contributes the bulk of the revenues to support post-secondary education in Canada.

I understand that students can feel quite overwhelmed at the costs they face upon entering university. They must also consider the reward for their investment. They are likely to earn three-quarters-of-a-million-dollars more over their lifetimes than high school graduates.

Many students still need help getting to graduation. Enhancements to targetted support, such as student financial assistance, are key to addressing legitimate concerns about high student-debt levels and to helping low-income students. Yet Nova Scotia has one of the weakest student assistance programs in the country. It must be improved and with a greater focus placed on students with the greatest financial need.

For these reasons, I recommended a combination of repayable loans and non-repayable grants, with an upper limit on the amount of assistance provided in repayable loans.

These initiatives will need to be done in the context of the other realities I presented in my report. Universities have work to do to deal with the financial and enrolment challenges they face. The fiscal reality of the province must also be recognized.

Responding in such a way should allow the province's universities to maintain the level of excellence they have become known for, while limiting student debt and helping those who need it the most. It would make Nova Scotia's university system stronger, for everyone.