Cost of degree courses in each province revealed, plus projection for 18 years' time
Student loan debt is a frequently cited source of financial concerns, but a new study reveals not only the high costs of post-secondary education today, but also how it’s set to escalate in the next two decades.
The figures may be of particular interest to new parents who want to keep all the options open for their child and have the longest time to save.
Compiled by Registered Educational Savings Plan (RESP) provider Embark Student Corp., the stats show that the average cost of a four-year post-secondary program in Canada will rise in 2024 to just over $75,000 when factoring in residence costs.
Those in Nova Scotia will pay the most ($88,490) while those in Newfoundland will have to pay the relatively modest sum of $54,336.
This will come as a shock to parents surveyed who guessed that the cost is around $62K. Around one third did not know enough to even guess.
Planning for 2041
With costs set to escalate by as much as 50%, students will face six-figure costs within the next 16 years, although for many it will come much sooner. For example, the figure for Nova Scotia is set to exceed $100K by 2029, ten years before the Canadian average reaches that level.
A baby born today and starting a four-year university course when they are 18, can expect to pay an average of almost $105,000 nationally, rising to more than $132K in Nova Scotia. However, those in Quebec, BC, Manitoba, and Newfoundland should avoid costs above $100K beyond the scope of the report.
"Post-secondary education is one of the most substantial investments Canadians can make towards their future, but it can also lead to a distressing financial burden," said Andrew Lo, CEO and President of Embark. "Given that the cost of education has historically outpaced inflation, it is vital for parents and students to not underestimate the associated expenses, and proactively plan for savings at the earliest opportunity to avoid sticker shock when the time comes."
Embark has found that many Canadians may be unaware of the government schemes that will boost their savings for their children’s education.
These include:
- Canada Education Savings Grant (CESG) which matches 20% of what you contribute to an RESP every year, providing up to an additional $500 in savings annually and up to $7,200 over the lifetime of the plan.
- Canada Learning Bond (CLB), which offers families with modest incomes money for just opening an account – no contributions are required to receive it if they fall within the eligible income requirements, and it can be received retroactively, as long as it’s applied for.
"In order to maximize education savings, it's important to leave no stone unturned. We saw that less than half of parents know about the CESG, which means most Canadians are missing out on government money that they are entitled to," added Lo.
