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Higher Education Trend Report: Student Finance

Education & Skills

By: Ibrahim Abuallail

    

Key insights 

International caps and the tuition crunch

  • Tuition accounts for 38 per cent of college revenues and 31 per cent of university revenues in 2022-23, up from 23 per cent and 24 per cent a decade ago.
  • Caps on international enrolments could cut university tuition revenue by 12 to 31 per cent over the next five years, with colleges facing even larger declines.

Cost burdens remain highest in certain provinces and programs

  • Nova Scotia and Saskatchewan lead in domestic tuition costs and federal student loan balances, while Ontario tops the list for international tuition.
  • Dentistry and executive MBA programs continue to rank among the costliest across institutions, with large debt balances most common among graduates aged 25 to 29.

Provincial funding growth has been uneven across Canada

  • Over the past decade, Quebec and British Columbia largely increased transfers to post-secondary institutions, while Ontario and Alberta saw minimal or negative growth.
  • These funding disparities affect institutional strategies, including tuition pricing and reliance on international students.

Canada invests heavily in higher education, but research spending lags

  • Canada invests 2.0 per cent of GDP in tertiary education, above the OECD average of 1.4 per cent, but spending as a share of GDP has declined since 2020–21.
  • R&D spending remains low compared to global leaders, limiting innovation capacity and future competitiveness.

Looking ahead: balancing affordability, accessibility, and sustainability

Canada’s post-secondary system continues to offer strong financial support, but rising tuition, uneven provincial funding, and heavy reliance on international student revenue create long-term sustainability risks. Policy adjustments and diversified funding strategies will be key to maintaining competitiveness and equitable access.

Explore the full report to uncover deeper insights and the shaping the future of student finance in Canada.

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