This paper analyzes the widely held view that university students are heavily subsidized because tuition amounts to only 15% of the cost of their educations. I argue that students, in fact, pay the full costs of their education. They pay in two ways--with tuition fees while they are students and through higher taxes after they graduate. The latter payments are ignored in conventional thinking. They are important and mean that Canada already has a contingent payment system for financing its universities.
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Paper provided by UBC Department of Economics in its series UBC Departmental Archives with number
98-07.
Find related papers by JEL classification: I20 - Health, Education, and Welfare - - Education - - - General H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General