Cdns get worst return on their post-secondary education

https://secure.globeadvisor.com/servlet/ArticleNews/story/gam/20120210/SRRRSPYOUTHTRENDSATL

Mr. Dick-Agnew says he defines success as being debt free, and eliminating his remains a far more immediate concern than saving for the end of a professional life that he feels he is perpetually only beginning.

"I've had quite a few jobs over the years and I get by," he says. "But I know getting to the next level - home ownership, travelling, possibly even retiring - requires more than constancy. You can't be successful without skill, but skill is no guarantee either; it takes luck too."

The Organization for Economic Co-operation and Development recently reported that Canada has the highest number of underpaid, highly educated citizens among member countries.

The federal Department of Finance last year estimated the return on investment for an undergraduate degree in the sciences to be between 12 per cent and 14 per cent; the return on a degree in humanities a measly 4 per cent to 6 per cent. The Canadian Labour Congress considers chronic underemployment and overwhelming debt to be the greatest challenges facing young Canadians.

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D - why that is nestled in a story about RRSP savings, instead of being a headline in its own right, is quite beyond me.

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http://www.winnipegfreepress.com/business/finance/education-an-investment-and-source-of-debt--137995938.html

A report from TD Economics said the average rate of return on the cost of getting an undergraduate degree – now estimated at about $60,000 – is above 10 per cent and the return on investment of a college diploma, which has lower up-front costs, is even higher.

If the cost of a university education is high now, it’s only going to get worse. A child born in 2011 could face total costs of $140,000 for a degree when he or she is ready to enter university.

According to Statistics Canada, about 26 per cent of students take out government-funded student loans to pay for their education and students leave post-secondary school with an average debt of about $18,000.

In another study, BMO Financial Group found that although 69 per cent of Canadians are concerned about the affordability of a post-secondary education, only 56 per cent of Canadians with young children have a Registered Education Savings Plan (RESP), and of those who do, they are contributing less than usual because they don’t have enough money.

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D - that amount of debt can increase in a hurry if you ignore it for a few years - at least when interest rates are normal.
Even though hiding in school during a recession might seem to make sense, even an entry level job can be used to pay down debt principal when interest rates are so low.

D - now instead of more-than-needed senior program funding, anything regarding RESPs will ensure the merit principle trumps an affluent upbringing, thereby ensuring justified social mobility and matching workers to work best.

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http://www.poss.ca/en/node/2330

"18.5 per cent of Canadian grads earns less than half our country’s median income of $37,002. That's the highest number of underpaid and over-educated citizens in the OECD. Think about it. One in five university grads in Canada makes less than $18,501."

That is if they can find a job.

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http://oncampus.macleans.ca/education/2011/10/18/are-young-canadians-really-better-off-than-young-americans/

But consider this. Typical student debt, for those who have it, is almost identical in the two countries. The Canadian Federation of Students says that average graduate debt in Canada is $25,000. South of the border, average debt is $24,000, according to the Project on Student Debt.

Youth unemployment rates are similar too. Is there much difference between the 14 per cent rate reported by Statistics Canada and the 18 per cent reported by the Bureau of Labor Statistics?

What’s more, a bachelor’s degree may open doors to higher earnings for some people, but according to a new report, 18.5 per cent of Canadian grads earns less than half our country’s median income of $37,002. That’s the highest number of underpaid and over-educated citizens in the OECD. Think about it. One in five university grads in Canada makes less than $18,501.

And what about the graduates in Canada who are working, but in jobs that they could have gotten without a university degree? According to the most recent Labour Force Survey, the industry with the largest employment gains in September was accommodation and food services. Needless to say, some of those jobs can be done without degrees—and without student debt.

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D - you don`t hear about this much. Economic failure, particulary with the high expectations of family, make this a shameful secret.