Tuition Market Modifiers FAQ

A: U of C administration is recommending a 1.5 percent increase for all undergraduate and graduate programs, effective May 1, 2010. This recommendation will be voted on by the Board of Governors at the board’s next meeting on February 22. This is the maximum allowable tuition increase under the provincial government’s Tuition Policy Regulation.

A: This year, the Province invited post-secondary institutions to submit proposals for fee increases (known as ‘market modifiers’) in professional programs or specialty areas. The University of Calgary has proposed additional fees for business, law, medicine, education and engineering to bring tuition in those areas in line with programs offered by other Canadian universities with which we compete for students. The University of Calgary is currently discussing these market modifiers with student leaders and faculties.

** Tuition for arts and science students will be subject only to the 1.5 percent increase. Students who take business courses as a part of a minor will pay the additional fee for those courses only but this will not add significantly to the cost of their degree.

A. The increased revenue from the increases will improve the quality of education for students and be spent in three areas:

1. 10 percent of the additional funds will go towards increased scholarships and bursaries for students enrolled in these professional programs;
2. half of the remaining funds will be directed to the affected professional faculties to improve education quality. Deans will work with student groups to identify priority areas. Areas under consideration include reduction of class sizes, addition of faculty members, increased laboratory availability and additional student services;
3. the remaining funds will be used for general University operating funds, which pay for the heating and cooling of buildings, library resources, career counseling and other student services, among other general operating costs.

A:
Haskayne School of Business

Undergraduate programs
The U of C is proposing a market modifier of $232.25 per course for all undergraduate courses offered by the Haskayne School of Business, including both courses taken by students in the Haskayne School’s undergraduate programs and those taken by students in other Faculties (e.g., in connection with a minor in business). This market modifier is in addition to an increase in tuition in all programs of 1.5 percent.

Students in undergraduate business programs take roughly 50 percent of their courses outside the Haskayne School, and these courses will not be affected by market modifiers (except in the unlikely event that the Faculty offering the course is itself proposing the application of a market modifier). The market modifier and the 1.5 percent increase for business courses will together add approximately $1,200 to the average annual cost of a business degree, an increase of about 24 percent.

This adjustment will bring the U of C into line with the tuition for business programs at UBC, and aligns closely with the University of Alberta’s market modifier proposal for its undergraduate business programs. Even with this increase, the total cost of a business degree at U of C will be less than that at many other Canadian Universities. The major effect of the market modifier will be felt by business students in years three and four of their programs, since this is when they take the majority of their business courses. The U of C is also proposing a market modifier of $300 for Haskayne’s cooperative education fee, which would increase the fee to approximately $700.

Master of Business Administration
Based on an assessment of cost and market conditions, the U of C is proposing a market adjustment for its MBA program as follows:

The competitive environment includes the G13, plus SFU and UVictoria. The average is $27,000, and costs vary from a low of $11,001 (Montreal) to a high of $70,584 (Toronto).

Schulich School of Engineering
The U of C is proposing a market modifier of $192.26 per course for all undergraduate courses offered by the Schulich School of Engineering, including both courses taken by students in the Schulich School’s undergraduate programs and those taken by students in other Faculties. This market modifier is in addition to an increase in tuition in all programs of 1.5 percent.

Students in undergraduate engineering programs take roughly 30 percent of their courses outside the Schulich School, and these courses will not be affected by market modifiers (except in the unlikely event that the Faculty offering the course is itself proposing the application of a market modifier).

The market modifier and the 1.5 percent increase for all courses will together add approximately $1,560 to the average annual cost of an engineering degree, an increase of about 27 percent.

This increase would result in first year tuition for the Schulich School of Engineering being $6,680 with higher tuition in the upper years when the number of engineering courses increases. Even with these increases, the total cost of an engineering degree from the University of Calgary would be less than the total cost of an engineering degree at a number of other Canadian universities.

This adjustment aligns closely with the University of Alberta’s market modifier proposal for its undergraduate engineering programs.

Master of Engineering program
The U of C is additionally proposing a market modifier of $500 to the minimum fee for course-based and thesis-based Master of Engineering (MEng) degree programs. The current minimum fee for MEng programs is $5,479.20 for the course-based degree and $5,359.50 for the thesis-based degree. The market modifier and the 1.5 percent increase for all courses will together raise the total cost for the year to $6,061.39 for the course-based MEng and $5,939.89 for the thesis-based MEng.

Faculty of Law
The U of C is proposing a market modifier of $1,824.01 to the annual tuition fee for its Bachelor of Law (LLB) program. The program is a full-time three-year program in which students take all their courses in the Faculty of Law. Students are charged a program-based rather than a course-based tuition fee. The market modifier of $1,824.01 is in addition to an increase in tuition in all programs of 1.5 percent. The market modifier and the 1.5 percent increase will together add approximately $2,000 to the average annual cost of an LLB, bringing annual cost to $13,800—an increase of approximately 17 percent.

The U of C’s Faculty of Law competes in a national law school market and receives applications from all across Canada. There is a range of tuition fees across Canada. Fees for 2009-10 ranged from $21,767 at the University of Toronto to $8,177 at the University of Victoria.

Faculty of Medicine
The Faculty of Medicine is proposing a $4,400 market modifier adjustment to the annual tuition fee for its MD program. This increase is in addition to the 1.5 percent increase to all programs. Tuition for the Faculty of Medicine is $14,385 in 2009-2010. The program is a full-time three-year program in which students take all their courses in the Faculty of Medicine. Accordingly, students are charged a program-based rather than a course-based tuition fee. The market modifier of $4,400 is in addition to an increase in tuition in all programs of 1.5 percent. The market modifier and the 1.5 percent increase will together add approximately $4,615 to the annual cost of an MD, an increase of about 32 percent.

The total current cost of a University of Calgary medical degree is lower than all Ontario comparators and all Universities in Western Canada with the exception of the University of Manitoba. Even with a market modifier increase of $5,000, the total program costs at the University of Calgary in 2010 would be at or below the 2009 total program costs at all Ontario Universities. As these universities are also likely to increase tuition for 2010, we expect to be below all Ontario schools even after the market modifier adjustment. In addition, the total program costs would remain below UBC and Dalhousie.

Education
Bachelor of Education
The U of C is proposing to introduce a $400 annual practicum fee. Both the University of Alberta and the University of Lethbridge already have such a fee. The fee will increase the annual tuition cost for a full-time student by 9 percent to $5,638.41 this includes the 1.5 percent increase.

Master of Education
Proposed increases:

• an annual program fee of $1,152 in additional to course fees for the MEd (Applied Psychology), adding approximately $3,456 to total program cost assuming three-year completion rate;
• an annual program fee of $658 in addition to course fees for the MEd (GDER), adding approximately $1,974 to total program cost assuming three-year completion rate; and
• the addition of a one-time program fee of $467 in addition to course based fees for graduate diploma courses, adding $467 to total diploma cost.
• the market modifiers will bring the fee structure for the Faculty of Education’s various distance education programs into line with each other.

The university has indicated its preference for phasing in some of the market modifiers to mitigate the effects on students already in affected programs, but a final decision on implementation of market modifiers will not be made until after we have had an opportunity to assess the implications of the Feb. 9 provincial budget on funding for the University of Calgary in 2010-2011 and subsequent fiscal years.

The affected programs are expensive to deliver and the university is finding it increasingly difficult to maintain its desired standard of educational quality in these programs. For a number of years, tuition increases have been linked to increases in the consumer price index, but this does not capture the full extent of increasing costs in universities. We are also looking at other ways to increase revenue and reduce costs. For example, the university is in the midst of a substantial administrative review designed to find cost-efficiencies.

The proposed 1.5 percent increase would bring in approximately $2.2 million. The proposed professional school increases, when fully implemented, would result in approximately $11.19 million additional revenue annually.

A: The 1.5 percent increase will be voted on by the U of C’s Board of Governors on February 22. The university’s market modifier proposal for professional schools has been sent to the Province of Alberta this month for its consideration. The Board of Governors will ultimately vote on any proposed increases at its April 16 board meeting.

A. The Province of Alberta indicated earlier this year that it would consider temporarily suspending the tuition fee policy in order to consider proposals for market modifiers in specific programs. Tuition in Alberta was capped from 2004-2007 and maximum increases have been tied to the rate of inflation since 2008. When adjusted for inflation, tuition in Alberta declined approximately one percent between 1997 and 2008 compared to a 19 percent increase nationally during the same time period.

Tuition rates in several of our professional schools have lagged behind our competitor universities. The U of C is committed to ensuring our students receive a high-quality education in these specialized programs. The reality is that the cost of delivery these programs has increased, while government funding has not.

The U of C has proposed additional fees for business, law, medicine and engineering to bring tuition in those areas in line with programs offered by other Canadian universities with whom we compete for students. Currently, tuition in U of C’s professional programs is considerably less than tuition charged for the same programs at other peer universities. Professional programs are also considered for market modifier increases because the earnings potential of graduates of these programs is significantly higher than for graduates from most of our other programs and because there are significant costs associated with the delivery of these specialized, experiential programs, all of which are subject to stringent accreditation standards.

A. At this time, additional increases are not being considered for these programs as their tuition rates are already in line with our competitor institutions.

A: The university is very aware of the financial concerns of students and is committed to ensuring that post-secondary education is accessible and, as far as possible, that no student is disadvantaged due to financial constraints. There is currently more than $76.9 million worth of scholarships, bursaries, awards as well as funding for Graduate Assistants in Teaching and Research available to U of C students, and it is our intention to set aside 10 percent of the revenue from market modifiers to use for additional financial support of students in affected programs.

A: More information about U of C tuition proposals is available on the website of the Office of the Provost: www.ucalgary.ca/provost/notes. For more information about student loans, scholarships, bursaries and awards, please visit Student Awards & Financial Aid: www.ucalgary.ca/awards.

A: Please email your feedback to tuition@ucalgary.ca.