“Zero Tuition” Would Offer Little Aid to Students

By Jonathan Denis, College of Law, University of Saskatchewan

As students across Canada, all of us are undoubtedly aware that student debt levels have been on the rise this decade. Over the past several years, various solutions to alleviate this problem have been proposed by governments, opposition parties, and special interest groups.

One such group is the Canadian Federation of Students (CFS). The CFS has long lobbied that the government implement a “zero tuition” policy whereby students’ current responsibility for tuition payments would be completely eliminated. While at first glance this policy may seem attractive, there are numerous aspects of this plan that one must consider.

First, any first-year economics student will tell you that demand curves are generally downward sloping. Thus, it follows that if tuition fees were eliminated, demand for post-secondary education would increase. One need not conduct a study to conclude that the costs of expanding existing facilities to meet the increased demand would pose a daunting expense. Conversely, if no additional facilities were built, this would result in increased class sizes, or higher admissions requirements, or both.

Second, one must also bear in mind that post-secondary education is already subsidized. Currently, students pay approx- imately 30 to 40 percent of the total cost of the education they receive (the remainder comes from government subsidies). Further, a survey of 400 university and technical school students revealed that most students felt that it was fair to pay this portion of what it costs to educate them.¹

Third, while there are instances where prospective post-secondary students cannot afford the current fee structure, there are many more effective means by which such persons can be assisted. For example, the government currently provides such individuals with subsidies or partially forgivable loans so that further education is made accessible to them. More recently, the federal government has introduced a provision whereby student loan interest will be tax deductible. Measures such as these are far more fair and cost-effective that simply providing free tuition.

In the end, we must be cognizant of the reason why most people enrol in post-secondary programs in the first place: to develop marketable skills which will improve their earnings potential and maximize their chances of obtaining better work. If a policy of “zero tuition” were implemented, this would undoubtedly result in higher taxes that would have to be borne by the working population. In turn, the knowledge that an increasing portion of income would be taken by the government following graduation would serve as a disincentive for potential students to seek further education.

Once one examines the effects of “zero tuition,” it becomes clear that such a concept is neither feasible nor desirable.

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Last Modified: Wednesday, October 20, 1999.