The cost of a degree

Universities in Canada operate on budgets supplied by three main sources: government funding, student fees and private-sector support. Government funding—as a share of total university revenues—has declined steadily for the past 20 years. As a result, universities have had to seek more funding from the other two sources.

Tuition fees, and to a lesser extent private-sector funding, have increased over the past several years. In 1981/82, 81% of university education expenditures were covered by government funding, while student fees paid for 9%. Other funding comes from sources, such as bequests, grants and donations. By 2001/02, the government share had dropped to 62%, whereas the share coming from student fees increased to 20%.

From 1990/91 to 1999/00, undergraduate tuition fees rose an average of 9.6% per year. This rate of increase has slowed since then, however. In the 2003/04 academic year, undergraduates paid $4,025 in tuition fees on average, up from $3,749 in 2002/03 and more than double the average of $1,464 in 1990/91.