August 13, 2022
With a Rise in Global Fees: Canadian Universities Surpluses Reach $7.3 billion
C Canadian universities reported record surpluses during the pandemic last year, with international tuition fees providing a growing portion of revenues and boosting the bottom line. According to data released this week by Statistics Canada, university surpluses in 2020–21 totaled $7.3 billion despite postsecondary institutions switching to online learning and closing classrooms to stop the spread of Covid.
University revenue rose by 12.8% to $46.3 billion. At the same time, expenses fell by 3.8% to $39 billion. Over the last ten years, the importance of tuition income has increased for schools, going from 21.5% to 28.8% of total income. The report states that the government's share of funding has decreased to 32.5%.
Speaking with a source, we discovered that although international tuition differs by programme and university, it costs on average three times as much as domestic tuition. The source said, “This trend may be related to a steady shift towards more reliance on tuition fees – particularly from international students – to fund universities’ operating activities.”
…it is disappointing that the Statistics Canada Report demonstrates that although some universities had significant surpluses, it did not have a positive financial spill-over effect on students experiencing online learning…
The Canadian Federation of Students has added their voice to the debate over eliminating international fees by labelling the difference in fees for international students as "exorbitant" and urging the provinces to make education more affordable for all students.
They claim that a number of foreign students objected when schools moved their classes online, arguing that their tuition should be reduced if they were denied the full advantages of an on-campus education. Their cries remained unnoticed as the majority of institutions stuck to their position on foreign tuition. An unnamed student, affected by the rising cost of international tuition fee said, “It is disappointing that the Statistics Canada report demonstrates that although some universities had significant surpluses, it did not have a positive financial spill-over effect on students experiencing online learning.”
Despite concerns about the rising tuition expenses for international students, it is somewhat gratifying that some institutions are steering clear of tuition fees they had for students who were taking online classes and living overseas. Some provinces supported the switch to online learning during the outbreak, which lessened the financial load on international students.
Income from post-secondary institutions was also increased by rising stock markets. Investment revenue hit a record high of $5.4 billion in 2020–2021, generating operating surpluses. Given the decrease in stock prices this year, the report did mention that it is doubtful that this record will be broken.
Posted in News and tagged News, Canada, Canadian Universities, Statistics Canada, Canadian Federation of Students, University Revenue, International Students
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