Yes, there will be shrinkage
In other words, the cost of the CSLP is going to increase at about 2.3% a year, or about the rate of inflation. The report doesn’t say this next part, but it’s something everyone knows: government tax revenues and Gross Domestic Product are going to increase faster than inflation—a lot faster than inflation. (Unless we assume zero economic growth for the next 25 years, incomes and GDP and tax revenues will rise faster than the rate of inflation). All other things being equal (assuming no big new tax cuts, for example) the government of Canada will be devoting a lot less of its resources, and a lot less of the country’s total wealth, to Canada Student Loans—even if the loans program covers more students and lends them more money, as OSFI suggests it will.
All of which should, in one sense, make student loan reform advocates happy. Pitching changes and improvements to the system is only going to get easier. If OSFI is right, as each year passes it will become relatively less costly for a future federal government to be more and more generous with student borrowers. If OSFI’s actuaries are right, the relative cost of converting more Canada Student Loans spending from loans to grants, reducing or eliminating interest, or forgiving more borrowers who find themselves unable to pay is only going to get cheaper.
THE ONE AND ONLY REASON FOR THE DROP IN ENROLLMENT POST SECONDARY EDUCTAION IS COMPLETE IGNORANCE OF THE GOVERNMENT TOWARDS THE GUYS WHO TOOK LESS THAN ONE YEAR COURSE. As per the new update, students who took more than two year would get work permit for three years, and who took less than two years, would hyave to go home…..because of various factors…….
The one problem with this analysis is that it assumes that the children of the baby-boomers already have the skills and knowledge of the baby-boomer generation and so will just be able to take their place. I don’t see that happening.
Instead, what I see is a massive influx of part-time students. Those who can see opportunities open ahead of them, but companies that realize they need people who know what they’re doing in those positions of higher responsibility. Thus heavy corporate scholorship and training budgets (no doubt leading to the corporate boards starting to lean on government for “free university” so that the taxpayers (ie, the students) have to pay for the education themselves instead of demanding it as part of contract) and an increasing reliance on education while working.
How you accomplish this under the traditional university model, I don’t know.
[...] will continue to increase, as Maclean’s has consistently challenged that assumption (see here and [...]
[...] will continue to increase, as Maclean’s has consistently challenged that assumption (see here and [...]
[...] oversight agency, stated enrolment at Canadian universities would start decreasing in 2009. (See: Yes, there will be shrinkage. Jul 2, 2008). Ontario’s universities, however, have been telling a different story, saying that [...]