The forgotten university fee that’s on the rise

The rising costs of university tuition and fees

We hear it all the time.  “Tuition is expensive.”

The numbers prove it.  Statistics Canada has found in the past 10 years, the average university tuition has jumped from $4347 to $6373 - an increase of 46%!

That’s not the only post-secondary fee that’s on the rise.

Did you know that on top of tuition, many Canadian students also face additional compulsory fees?  These are the fees that all students pay no matter what post-secondary program they’re pursuing. 

What are compulsory fees?

Compulsory fees vary from school to school. They cover student associations, athletics or student health services.  This kind of programming is important, but the additional money out of pocket is often overlooked and many students may be surprised to hear that it is rising as quickly as tuition.

How much money are students spending on compulsory fees?

Statistics Canada’s latest report on tuition fees across the country found that students are paying approximately $873 in compulsory fees, nearly 3% more when compared with last year.  While these mandatory costs vary among Canadian institutions and can also change over the years, they’re still an added expense to consider in the university budget.

How much will university cost in the future?

Statistics Canada found on average, undergraduate students paid $6,373 in tuition fees for the 2016/2017 academic year.  That’s almost 3% higher than last year when the average tuition was around $6,201. 

CST has done some number-crunching and found that a four year university degree for a student living away from home could cost as much as $165,000 by 2034. This estimate includes tuition, compulsory fees, room and board, entertainment, transportation and books.

Managing these finances can be stressful but it doesn’t have to be.

For those looking ahead to higher learning for their little ones, planning ahead can help alleviate concerns about the future costs of postsecondary education.  Taking advantage of a Registered Education Savings Plan (RESP) helps you save money and receive additional money thanks to government grants. 

It means that when graduation day comes and it’s time to select a postsecondary school, the money will be there when you need it and you’ll be ready to pay for tuition and any of those extra fees.