Tuition fee numbers not as frightening as they appear

Toronto, ON – September 13, 2013 - Parents paying into a RESP for their child shouldn’t feel the burden of the latest data on tuition fees coming from Statistics Canada.

“The numbers released by Statistics Canada shouldn’t come as a surprise to anyone paying attention to the increase in fees over the past decade and half,” says Peter Lewis Vice President at CST Consultants Inc and the Canadian Scholarship Trust Foundation.

The average rate of fee increase has remained steady at roughly 4 per cent over the last 5 years. But if you take into account the average rate of inflation of about 2 per cent (CPI Canada); the actual rate of fee increase stands realistically at 2 per cent after inflation.

“This year’s data shows a 3.3% increase in tuition fees for full-time studies in an undergraduate program, so we’re looking at more like a 2 per cent increase this year,” says Lewis. “Since these numbers have remained steady, parents can actually readily plan for that increase from the time the child is born to the time they are ready for post-secondary studies.”

For the average student who is a beneficiary of a Registered Education Savings Plan (RESP) the latest tuition fees shouldn’t be a scary number. According to Employment and Social Development Canada, the average student withdrawal from an RESP was $7,325 in 2012. That’s enough to pay for the tuition fees listed in the latest Statistics Canada data.

These numbers also do not take into account the various forms of tax credits available for students that can be passed along to parents, which could be worth $2,200 to the average Canadian student and applied to the child’s subsequent year of schooling if planned ahead of time.

Taking into account the tax credits and the RESP contribution, the current average tuition fees of $5,772 can be paid off quite readily with some foresight and planning with a RESP.

For more information or to set up an interview with Peter Lewis and/or a family in your area please contact:

Edyta McKay – Manager, Corporate Communications
CST Consultants Inc.
Office – 416 445-7377 x 303 Mobile – 416 602-2849
[email protected]

About CST

The Canadian Scholarship Trust Foundation is a non-profit organization that has been helping families save for post-secondary education for over fifty years. As a wholly-owned subsidiary of the Foundation, C.S.T. Consultants Inc. (CSTC) is the distributor and manager of the Canadian Scholarship Trust Plans. Focused exclusively on growing and protecting its planholders' savings, CSTC currently manages $3.8 billion in assets for over 280,000 Canadian families. CSTC boasts a sales force of 640 located across the country. The Canadian Scholarship Trust Foundation offers its own awards for academic achievement and community engagement to those students in their Group Plans who are pursuing graduate studies. For more information about RESPs at CST go to www.cst.org or follow us on twitter @cstconsultants and like us on Facebook.