Comments on: Cost of a Future University Degree: $92,369 http://www.canadiancapitalist.com/cost-of-a-future-university-degree-92369/ Helping you invest and prosper Thu, 18 Mar 2010 18:50:04 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Gary B. Gorr, CHFC http://www.canadiancapitalist.com/cost-of-a-future-university-degree-92369/#comment-203896 Gary B. Gorr, CHFC Sun, 15 Nov 2009 14:02:39 +0000 http://www.canadiancapitalist.com/?p=3060#comment-203896 I was writing an article on education costs and the people at InvestorEd.ca have a great calculator. Your readers may want to know. http://www.investored.ca/tools-and-calculators/resp-calculator/ I was writing an article on education costs and the people at InvestorEd.ca have a great calculator.

Your readers may want to know.
http://www.investored.ca/tools-and-calculators/resp-calculator/

]]> By: Halloween Edition of 4P Traffic And Some LinkStuff « Daily News http://www.canadiancapitalist.com/cost-of-a-future-university-degree-92369/#comment-202905 Halloween Edition of 4P Traffic And Some LinkStuff « Daily News Sun, 01 Nov 2009 19:29:01 +0000 http://www.canadiancapitalist.com/?p=3060#comment-202905 [...] Capitalist covers the cost of a future university degree.  This tied in well with my post this week on RESP – withdrawal of [...] [...] Capitalist covers the cost of a future university degree.  This tied in well with my post this week on RESP – withdrawal of [...]

]]> By: Intelligent Speculator | Financial Ramblings http://www.canadiancapitalist.com/cost-of-a-future-university-degree-92369/#comment-202808 Intelligent Speculator | Financial Ramblings Sat, 31 Oct 2009 17:41:53 +0000 http://www.canadiancapitalist.com/?p=3060#comment-202808 [...] are you? @ TheFinancialBlogger -Good analysis of the state of the S&P500 @ MyTradersJournal -Cost of a future university degree: 92,369$ @ CanadianCapitalist -A dozen or so ways to earn extra income @ GatherLittlebyLittle -9 more banks [...] [...] are you? @ TheFinancialBlogger -Good analysis of the state of the S&P500 @ MyTradersJournal -Cost of a future university degree: 92,369$ @ CanadianCapitalist -A dozen or so ways to earn extra income @ GatherLittlebyLittle -9 more banks [...]

]]> By: Patrick http://www.canadiancapitalist.com/cost-of-a-future-university-degree-92369/#comment-202753 Patrick Sat, 31 Oct 2009 04:27:43 +0000 http://www.canadiancapitalist.com/?p=3060#comment-202753 CC: Well, I'm a strong believer in public education, and students paying for their own education is not, by definition, public education. It's also <i>not</i> just a matter of whether students pay now or later. It's a matter of whether students pay or everyone pays. We don't charge parents to put their kids in kindergarten. Should some of the burden be borne those whose talents or inclination have sent them on a career path that doesn't require a degree? Should the burden be shared equally by those who get different kinds of degrees? That's the difference you get when you fund education by government taxation versus by students. CC: Well, I’m a strong believer in public education, and students paying for their own education is not, by definition, public education.

It’s also not just a matter of whether students pay now or later. It’s a matter of whether students pay or everyone pays. We don’t charge parents to put their kids in kindergarten. Should some of the burden be borne those whose talents or inclination have sent them on a career path that doesn’t require a degree? Should the burden be shared equally by those who get different kinds of degrees? That’s the difference you get when you fund education by government taxation versus by students.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/cost-of-a-future-university-degree-92369/#comment-202720 Canadian Capitalist Fri, 30 Oct 2009 20:53:17 +0000 http://www.canadiancapitalist.com/?p=3060#comment-202720 @Patrick: I firmly believe that society at large benefits when Canadians get an University education. They earn more, they pay more in taxes... But here's the question: did funding cutbacks slow down enrollment rates? I have no idea whether it did or not and I am by no means an expert in this area. If cutbacks did affect enrollment rates, you are absolutely right... we are not investing enough in our future prosperity. But if all it did was shift some of the burden from taxpayers to students, I don't think it's entirely unfair. Students either pay through debt-servicing charges on their loans or higher taxes on their earnings when they start working. I was under the mistaken impression that the big banks originate most of the student loans as well. The report you pointed to, which shows most loans are originated by the Government, implies that TD Bank's report isn't entirely self-serving (though they do get more business when parents save for their child's education through them). @Patrick: I firmly believe that society at large benefits when Canadians get an University education. They earn more, they pay more in taxes… But here’s the question: did funding cutbacks slow down enrollment rates? I have no idea whether it did or not and I am by no means an expert in this area. If cutbacks did affect enrollment rates, you are absolutely right… we are not investing enough in our future prosperity. But if all it did was shift some of the burden from taxpayers to students, I don’t think it’s entirely unfair. Students either pay through debt-servicing charges on their loans or higher taxes on their earnings when they start working.

I was under the mistaken impression that the big banks originate most of the student loans as well. The report you pointed to, which shows most loans are originated by the Government, implies that TD Bank’s report isn’t entirely self-serving (though they do get more business when parents save for their child’s education through them).

]]> By: Patrick http://www.canadiancapitalist.com/cost-of-a-future-university-degree-92369/#comment-202715 Patrick Fri, 30 Oct 2009 20:31:35 +0000 http://www.canadiancapitalist.com/?p=3060#comment-202715 CC - Thanks for reading the report I quoted a little more closely than I did. :-) Still, is everything a-ok just because the bank in question happens to be the Canadian government? What do you call an entity that collects other people's money and then lends it at interest? The chain of logic you showed is exactly right, aside from the final step of course. It shows the Canadian government getting out of educational grants and funding, and getting into the lending business. CC – Thanks for reading the report I quoted a little more closely than I did. :-)

Still, is everything a-ok just because the bank in question happens to be the Canadian government? What do you call an entity that collects other people’s money and then lends it at interest?

The chain of logic you showed is exactly right, aside from the final step of course. It shows the Canadian government getting out of educational grants and funding, and getting into the lending business.

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/cost-of-a-future-university-degree-92369/#comment-202694 Canadian Capitalist Fri, 30 Oct 2009 14:36:21 +0000 http://www.canadiancapitalist.com/?p=3060#comment-202694 @Patrick: The report you quoted looks at <strong>government student loans</strong>. It notes that 8% have solely borrowed from non-government sources and "on average, the amounts owed to non-government sources were generally smaller than government loans". What you are essentially saying is: Governments cut funding for universities -> universities raised fees -> students still wanted PSE and were willing to borrow to invest in their degrees -> Governments provided more student loans -> banks are responsible for the cost of increased higher education. I fail to follow the logic. @Patrick: The report you quoted looks at government student loans. It notes that 8% have solely borrowed from non-government sources and “on average, the amounts owed to non-government sources were generally smaller than government loans”. What you are essentially saying is: Governments cut funding for universities -> universities raised fees -> students still wanted PSE and were willing to borrow to invest in their degrees -> Governments provided more student loans -> banks are responsible for the cost of increased higher education. I fail to follow the logic.

]]> By: Patrick http://www.canadiancapitalist.com/cost-of-a-future-university-degree-92369/#comment-202632 Patrick Fri, 30 Oct 2009 05:23:33 +0000 http://www.canadiancapitalist.com/?p=3060#comment-202632 Uh... I meant 1990 of course. Not 1900. Uh… I meant 1990 of course. Not 1900.

]]> By: Patrick http://www.canadiancapitalist.com/cost-of-a-future-university-degree-92369/#comment-202631 Patrick Fri, 30 Oct 2009 05:21:58 +0000 http://www.canadiancapitalist.com/?p=3060#comment-202631 CC: If funding was cut, and schools passed on the costs to students in the form of tuition hikes, how did enrollment increase by 8%? Was everyone richer? Did more people just really really want degrees? Here's how enrollment increased: http://www.statcan.gc.ca/kits-trousses/pdf/social/edu04_0032a-eng.pdf The average student had almost twice the average debt at graduation in 2000 versus 1900. If this hadn't happened, more and more people would have found themselves unable to pay the increased tuition, and the government would have been forced to restore the funding. Instead, the banks effectively removed this feedback mechanism, allowing funding to be cut with no obvious immediate repercussions for those seeking an education. CC: If funding was cut, and schools passed on the costs to students in the form of tuition hikes, how did enrollment increase by 8%? Was everyone richer? Did more people just really really want degrees?

Here’s how enrollment increased:

http://www.statcan.gc.ca/kits-trousses/pdf/social/edu04_0032a-eng.pdf

The average student had almost twice the average debt at graduation in 2000 versus 1900.

If this hadn’t happened, more and more people would have found themselves unable to pay the increased tuition, and the government would have been forced to restore the funding.

Instead, the banks effectively removed this feedback mechanism, allowing funding to be cut with no obvious immediate repercussions for those seeking an education.

]]> By: A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com http://www.canadiancapitalist.com/cost-of-a-future-university-degree-92369/#comment-202624 A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com Fri, 30 Oct 2009 03:30:59 +0000 http://www.canadiancapitalist.com/?p=3060#comment-202624 [...] Canadian Capitalist explains the future cost of going to university could be over $90,000 for an undergraduate degree. [...] [...] Canadian Capitalist explains the future cost of going to university could be over $90,000 for an undergraduate degree. [...]

]]>