Education and DebtEducation and Debt

Is it a right?• Before 1870 school was not

mandatory– Local residents paid for building and

staffing a local school.• In predominately rural Canada the

emphasis was on the “basics”– Reading and writing

• students entered the work force (farm or factory) anytime after 14 years old

The StatsEnrolment in Primary and Secondary Schools

1975 5,3 Million

1965 4,9 Million

1955 3 Million

1945 2 Million

1935 2,1 Million

1925 1,9 Million

1915 1,5 Million

1905 1,1 Million

1895 1 Million

1885 911,000

1875 858,000

1866 682,000

Higher Education• Access to high school was limited

in Canada outside of larger towns or cities.

• University was for the few or elite. – Were small and usually associated

with a particular religious group. (Acadia / SMU)

The Select FewUndergraduate Graduate

Total Total

2005 1,021,520 (3%)1975 330,954 40,1081970 276,297 33,1721960 107,211 6,5181950 64,036 4,5591940 34,817 1,5691930 31,576 1,3501920 22,791 (0.17%) 423

Colleges

College enrolme

nt in Canada

Number2004/200

52005/2006 2006/2007 2007/2008 2008/2009

608,388 605,925 611,832 626,514 605,316

Free Education ???

Is it all that Bad?• Recent numbers indicate that all is

not bad. – 80% of university students who

graduated in 2005 are working full time.

– Of the class of 2005• 46% of grads finished with no debt• 25% of grads paid off their education within

2 years of graduation

Adding up the Numbers• One factor in this is the amount of time spent in the workforce.

College programs being the shortest means that they will be in the workforce the longest.

• College (40 years of employment) = $ 1.4 Million

• Graduate (38 years of employment) = $ 1.71 Million

• Masters (36 years of employment) =$2.16 Million

• PhD (29 years of employment) = $1.81 Million

*based on entering school at 18 and retirement at 65*

Show me the Money• The median annual earnings among those who

were working full time in 2007:

• College graduates = $35,000

• Bachelor graduate = $45,000

• Masters graduate = $60,000

• PhD graduates = $65,000

How much will it cost• Debt by education level • Doctorates = $22,500 on average • Masters = $19,500 on average • Bachelors= $20,400 on average • College = $11,800 on average

– But calculate that with interest 3.5% over 36 months

• Doctorates = $22,500 = $28,350

• Masters = $19,500 = $24,570

• Bachelors= $20,400 = $25,704

• College = $11,800 = $14,868