1. Low Income Students in Canada: How They Access and Pay for PSE Ross Finnie Graduate School of Public and International Affairs University of Ottawa rfinnie@uottawa.ca

2. A) Overview of the Canadian PSE System

3. Start with “K-12” System Almost entirely public Almost entirely public Generally good quality Generally good quality Most finish (90%+) Most finish (90%+) Gender issue begins to show… Gender issue begins to show… 3

4. Kinds of PSE Almost all public – limited privates Almost all public – limited privates Types Types –Trade/vocational schools – Community college – University (“college” in U.S.) 4

5. Direct Costs of PSE Tuition/fees generally reasonable Tuition/fees generally reasonable – 0-$3k for college –$2-6k for university Not related to instit. quality Not related to instit. quality Rationing by “ability” (grades) Rationing by “ability” (grades) 5

6. Student Aid – Front End Eligibility related to “need” Eligibility related to “need” Generous – up to $15k/yr Generous – up to $15k/yr More loans than grants More loans than grants Generally enough Generally enough 6

7. Student Aid – Back End Increasingly “income sensitive” Increasingly “income sensitive” “ICR”/”ICL” banished from lexicon “ICR”/”ICL” banished from lexicon But not from policy developments But not from policy developments 7

8. Changes Over Time Bank lending with guarantees Bank lending with guarantees Bank lending with default premium Bank lending with default premium Fully government system Fully government system They can all work… They can all work… 8

9. Does it Work? Pretty well Pretty well Although too complicated Although too complicated Are some put off by borrowing? Are some put off by borrowing? Or by paying? Or by paying? Not clear Not clear 9

10. B) ACCESS: “Who Goes?”

11. 1. “Barriers to PSE”: The Wrong Terminology

12. “Barriers” suggests…barriers! “Barriers” suggests…barriers! For those who want to go… For those who want to go… Not usually the issue Not usually the issue More about wanting to go More about wanting to go And preparing for it And preparing for it 12

13. 2. Overall Access Rates

14. Access rates at age 21

15. Reasons for NO PSE at age 21

16. Reasons for no PSE by Family Income

17. Some First Main Results… Access rates high Access rates high Money not usually the “barrier” Money not usually the “barrier” Some variation by income level Some variation by income level But “money” is not “affordability” But “money” is not “affordability” 17

18. 3. Family Income Vs. Parental Education

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23. The Access Story Line Income effects moderate Income effects moderate Parental education dominates Parental education dominates A gender story on income A gender story on income 23

24. 4. What Do Income and Education Capture?

25. Income Related to… Not grades Not grades Not other HS variables Not other HS variables But reading scores, yes But reading scores, yes Smallish but robust effect Smallish but robust effect 25

26. Education Related to… Grades (unlike income) Grades (unlike income) Not HS variables (again) Not HS variables (again) Reading Scores (again) Reading Scores (again) More related to background More related to background 26

27. 5. The Home Environment

28. The Family Matters! Family environment, habits, experiences matter! Family environment, habits, experiences matter! Related to income, education Related to income, education “Cultural capital”? “Cultural capital”? Sociology as well as economics Sociology as well as economics 28

29. 6. Access: A Summary

30. Access: What Matters Many factors matter Many factors matter Inter-related, family-based Inter-related, family-based Effects probably start early Effects probably start early “Culture” more than money “Culture” more than money 30

31. Policy Implications Aid, tuition policies limited Aid, tuition policies limited Given costs/aid system in place Given costs/aid system in place Need to identify real “barriers” Need to identify real “barriers” Direct policy there Direct policy there 31

32. C) Pathways Through PSE

33. Total Grad. = Same Prog. + Diff. Prog. + Diff. Inst. + Diff. Level +D.K. Univ.69.4=52.1+6.0+4.4+4.6+2.3 Coll.73.1=56.5+5.2+ +1.8+4.4 Five-Year Cumulative Total Graduation Rates (%)

34. Total Graduate Still in PSE Not in PSE Univ.69.420.410.2 Coll.73.18.818.0 Five-Year Overall Persistence Rates (%)

35. Reasons for Leaving (%) - University SwitchersLeavers Not enough money4.615.2 Wanted to work2.77.8 Marks too low4.55.3 Didn't like it/Not for me28.330.5 To change school, program40.510.3 Other19.430.9

36. New Picture of Pathways Different pathways to graduation Different pathways to graduation Overall persistence rates high Overall persistence rates high Money not a big factor Money not a big factor 36

37. D) Does Very Early Background Matter?

38. University Participation Rates at Age 19 by Parental Income from Diff. Age Intervals

39. Effects Start Very Early Effects vary by child’s age Effects vary by child’s age Research just started Research just started Important policy implications Important policy implications 39

40. E) The L-SLIS: A New Resource - -Information Available - -Sample Frame

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45. (%)

46. E) Student Borrowing: Repayment and Burdens

47. Proportion of Debt Repaid by Degree Level, Cohort and Sex

48. Incidence of Difficulties in Payback by Degree, Cohort and Sex

49. F) Conclusion: Who Goes, Who Stays, What Matters

50. Access supported by all Access supported by all Financial aid too Financial aid too “Barriers” mostly socio-economic “Barriers” mostly socio-economic The next policy challenge.. The next policy challenge.. 50