Fear is spreading among parents and students that post-secondary education in Canada is moving beyond their financial reach.
BMO Financial Group released a study conducted by Leger Marketing that found 64% of Canadians believe the cost of post-secondary education in Canada is too expensive. With a four-year program at a Canadian university currently costing up to $60,000, only 21% of parents with children under the age of 18 feel confident they would be able to pay-off such costs.
About 60% of students aged 18 to 24 felt the same way as their parents about being able to afford a university or college education. About 28% said they would struggle to pay off post-secondary costs and 32% expect to be in debt for years following graduation.
The survey found that just over half (52%) of Canadian parents with children under 18 have contributed to a registered education savings plan (RESP). Those who have not opened an RESP said they couldn’t contribute because they could not afford it. About 16% said they either were unfamiliar with RESPs or did not have the time to set one up.
David Sharon, BMO’s manager of registered products, said it is ideal for parents to set up an RESP sooner rather than later, in part, because the federal government provides a Canada education savings grant on funds saved in an RESP.
Statistics Canada confirmed earlier this month that tuition fees across the country have risen 4% for undergraduate programs and 6.6% for graduate degrees (See “MBA’s the most expensive graduate programs in Canada ” – September 16; BIV Business Today).