Submission to the Select Standing Committee
on Finance on the provincial Budget 2015
Consultation
Alliance of British Columbia Students – Chairperson@bcstudents.ca
About the Alliance of British Columbia Students (ABCS)
The Alliance of British Columbia Students (ABCS) is a non-partisan society of nine student associations
representing over 165,000 students from across the province that exists to lobby on issues that affect
post-secondary students in British Columbia. The Alliance advocates on graduate, undergraduate, and
trade student issues. Membership includes:

Alma Mater Society of UBC Vancouver (UBC AMS)

British Columbia Institute of Technology Student Association (BCITSA)

Capilano Student Union (CSU)

Graduate Student Society of UBC Vancouver (UBC GSS)

Kwantlen Polytechnic University Student Association (KSA)

Langara Students Union (LSU)

University of the Fraser Valley Student Union Society (UFVSUS)

University of Victoria Student Society (UVSS)

Royal Roads University Student Association (RRUSA)
Since its creation, the Alliance has also worked with other student associations including: Northern
Undergraduate Student Society (NUGSS), Simon Fraser Student Society (SFSS), Simon Fraser University
Graduate Student Society (SFU GSS), University of British Columbia Students Union Okanagan (UBC
SUO), and University of Northern British Columbia Graduate Students Society (UNBC GSS).
Introduction
A vibrant, high quality and accessible post-secondary system is essential to British Columbia’s economy
and to efforts to create more and better paying jobs1. Because of this link, post-secondary education in
British Columbia should be affordable for students and their families, especially for those who have
traditional barriers to access. Post-secondary graduates not only enjoy higher incomes, but are less likely
to be unemployed, find jobs more quickly if they are laid off (even during economic downturns), and
have children who are more likely to succeed in school.2 In order to adapt to a changing world and
maintain a high degree of excellence, the quality of B.C.’s colleges and universities should be
continuously improving.
1
Studies on the impact (actual or potential) of post-secondary institutions on the economy include:
 Sudmant, Walter, “The Economic Impact of the University of British Columbia,” Planning and Institutional
Research, UBC, September 2009.
2
Studies on the benefits of post-secondary education on individuals, the economy and society include:
 Frenette, Marc, Richard Upward and Peter W. Wright, “The Long-term Earnings Impact of Post-secondary
Education Following Job Loss,” Analytical Studies Branch Research Paper Series no. 334, Statistics Canada,
2011.
Student Priorities
The Alliance has identified several key priorities relating to student needs across British Columbia. These
priorities include:

Student loan interest rates

Student grants

Support for Trades through material costs

Graduate student scholarships

Deferred maintenance
Executive Summary
While the existing financial aid being offered enables thousands of British Columbians to access
education and skills training, all of British Columbia benefits from an educated population. With youth
unemployment in British Columbia being the highest in Canada, getting them back to work and keeping
them in the work force is greatly aided by increasing access to financial aid. For that reason, the ABCS is
calling on the provincial government to reduce and eliminate barriers to education.
A student grants program, coupled with a student loan program, reduces both the barriers of entry as
well as the end debt load for students. After completing post-secondary training, a heavy debt load can
be a substantial burden on those entering the work force, resulting in delaying family decisions and
putting off home ownership. The ABCS believes that a comprehensive grants program can reduce the
financial burden placed upon students, increasing completion rates and speeding up the time it takes to
obtain a post-secondary education.
Trades form the backbone of British Columbia’s economy. While we have very strong trades programs
across the province, the current funding model is proving to be a strain on student finances, academic
programs and serves as an unnecessary distraction for faculty. The ABCS believes that closing the
funding gap on needed trades materials will do much to improve the quality of British Columbia’s trades
programs and continue to drive British Columbia’s economy forward.
One of the greatest drivers of investment in British Columbia’s post-secondary investment system are
graduate students. Graduate student research consistently delivers significant funding to postsecondary institutions from the private sector, which looks to fund the best and brightest graduate
students. With very robust graduate student scholarships being offered across the country, the ABCS
recommends the government expand its graduate student scholarship programs to keep British
Columbia’s graduate students studying in British Columbia and also to attract the best minds to our
institutions.
While there has been significant capital expenditure given over the past decade to post-secondary
institutions, older buildings have had significant deferred maintenance issues. These deteriorating
buildings are causing a decline in the ability of institutions to deliver a world class education. Given the
pressing need, as well as the increased costs over time as buildings continue to degrade, the ABCS is
calling on the government to divert capital funding to deal with deferred maintenance issues in British
Columbia’s post-secondary institutions.
Student Loan Interest Rates
•
In British Columbia, students who take out loans are assessed an interest rate of prime plus
2.5% - one of the highest in the country.
•
British Columbia student loan interest rates are the highest in the country. Newfoundland and
Labrador, Prince Edward Island and Nova Scotia all provide interest free loans. Alberta,
Saskatchewan and Manitoba provide loans at prime, while Quebec offers at prime plus 0.5% and
Ontario at prime plus 1%. Only New Brunswick has interest rates as high as British Columbia’s.
•
According to a 2013 study by the Bank of Montreal, the average amount of debt for students in
BC is approximately $34,886 – the highest in the country.
•
A majority of British Columbia students obtain loans to pay for their education.
Given that British Columbia students have the highest average student loan debts as well as the highest
interest rates in Canada, students in British Columbia are forced to make difficult decisions about their
education. These decisions can result in extending the length of time it takes to obtain a degree, putting
off their career plans or delaying starting a family because of debt loads.
Recommendation: Eliminate interest rates on provincial student loans
Student Grants
•
British Columbia is the only province in Canada without a needs-based grants system. It is no
surprise then that British Columbia students graduate with the highest debt on average in
Canada.
•
The provincial government’s Families First program, which provides information for individuals
looking to move to BC, gives an expected cost of living estimate of over $30,000/year, for a
single person in a small apartment, using public transportation.
•
In 2014, students can expect to receive approximately $16,640 from student loans – half of what
the provincial government projects cost of living to be.
•
It is a primary concern of the ABCS that students are provided with financial support that is
congruent with the cost associated with the completion of their studies.
Although student loans serve to assist those with financial barriers to access post-secondary education,
a comprehensive grants system would operate alongside student loans to grant access without undue
long term financial burden to the student. The ABCS recognizes the need for a provincial grants
program to assist in reducing barriers of access to post-secondary education; as well as in increasing
completion rates and reducing the time it takes to graduate.
Recommendation: Institute a provincial grants system
Support for Trades – Material Costs
•
The current funding model for trades from the Ministry of Advanced Education does not cover
necessary materials costs like lumber or sheet metal.
•
The cost of raw materials can add an extra burden, especially for pre-apprenticeship programs.
These costs range from $25 to $23,230 per student beyond their tuition, books, and other fees.
As an example, a level C foundation welder can expect to pay an additional $230 for materials
costs alone.
•
Unlike textbooks, which a student may keep as a reference for many years, these materials are
used up in the process of the course, serving as necessary learning aids in the same manner as a
skill saw or hammer.
•
Some institutions have decided to internalize these costs, placing an even further burden on
strained institutional budgets, while others download these costs to students, creating an
unforeseen financial burden on already tight finances.
•
Materials acquisition is frequently done in an ad hoc manner, relying on individual instructors to
source their materials. This takes away from instructor preparatory time to focus instead on
seeking out additional resources on tight budgetary leashes.
Given the crucial role of trades to the economic growth of the province, it is important to reduce
barriers to trades programs. The ABCS believes that closing the funding gap on needed trades materials
will do much to improve the quality of British Columbia’s trades programs and keep driving British
Columbia’s economy forward.
Recommendation: Adjust the funding model for trades programs to include the base cost of
necessary materials
Graduate Student Scholarships
•
Several provinces, including Alberta, Ontario and Québec already have fairly robust programs
and so can outcompete BC’s colleges and universities in this regard.
•
Competition for graduate students is particularly fierce in Canada and British Columbia’s best
will be looking outside the province for education, and are therefore less likely to bring their
talents back to BC once their education is completed.
Graduate studies are a vital part of the post-secondary system. Working as researchers, graduate
students enhance our economy through innovation and many support our institutions by generating
significant investment in their institutions. When seeking out opportunities in research and
development, the private sector will invest in the best programs with the brightest minds. With other
provinces out competing British Columbia in graduate student scholarships, it is likely that the best
graduate students will be compelled to move out of province, taking their innovations and private sector
investments with them.
In order to ensure British Columbia remain competitive with other provinces in attracting the best and
brightest graduate students, the ABCS are calling for a graduate student scholarship program,
comparable to those of other provinces, be instituted in British Columbia. This program would be an
ongoing investment in our province, attracting and retaining highly qualified researchers and skilled
workers while delivering the innovation needed to grow and diversify our economy.
Recommendation: Implement a BC Graduate Scholarship program funding 1,000 scholarships
of up to $15,000 each, for a total cost of $15 million3 to compete with similar programs in
other provinces.
Deferred Maintenance
•
British Columbia post-secondary institutions have many aging buildings. These buildings are
nearing the end of their operational life or need considerable mid-life upgrades to continue
delivering excellent educational experiences
•
These aging buildings have considerable deferred maintenance issues; under tight budgetary
restraints, many institutions have been deferring maintenance in order to meet education goals
•
As maintenance is deferred, the overall cost of that maintenance grows over time. Dollars spent
now will save considerable dollars in the future.
•
Prior to 2008/9, provincial funding in the form of the Annual Capital Allowance was provided to
post-secondary institutions specifically for maintenance. Subsequent budgets saw drastically
reduced maintenance funding
•
Although the 2013 budget saw an injection of $1.9 billion towards deferred maintenance, the
scale of the deferred maintenance issue in British Columbia’s post-secondary institutions
requires considerable further funding to ensure the best educational institutions possible
The deferred maintenance issue in British Columbia post-secondary institutions is becoming severe.
Many buildings require significant work to continue serving our province. As such, the ABCS encourages
the provincial government to perform a comprehensive assessment of the deferred maintenance issue,
along with a considerable increase in deferred maintenance funding to meet the current and projected
need. As maintenance is deferred, costs continue to escalate; addressing deferred maintenance issues
represents a true investment in the future of education in British Columbia.
Recommendation: Perform a comprehensive analysis of deferred maintenance costs and
develop a fiscal framework to deal fully with identified maintenance issues.
3
Graduate Student Society of University of British Columbia Vancouver, The Graduate Student Society at
Simon Fraser University, Northern British Columbia Graduate Student Society, University of Victoria
Graduate Students’ Society “Proposal for a BC Graduate Scholarship,” [2012].
Our Members: