School's back — and Manitoba students are struggling to keep up with rising costs

The new school year has barely started, but more than half the money in an emergency fund for struggling students at Manitoba's largest university is already wiped out as the high cost of living strains budgets.

"Most students are really worried," said Tracy Karuhogo, vice-president for student life with the University of Manitoba Students' Union, whose hardship fund has doled out over $11,000 of its $20,000 budget since May.

That's a huge jump from this time in previous years, Karuhogo said, and an example of how the high inflation rate is hitting students hard.

"They are afraid that they are going to have to sit a semester out if they don't pay [tuition], or they are afraid of where they are going to get their next meal," she said.

In July — the most recent month for which inflation data is available — Canada's year-over-year inflation rate was 7.6 per cent. That was down from the 39-year high of 8.1 per cent in June, but still means Canadians were paying significantly more for everything from groceries to gas than they did a year earlier. At 8.8 per cent, Manitoba's July rate was even higher.

Food and rent are now at the top of the list of expenses students are asking for help with, Karuhogo said.

Many are also struggling with costs related to child care and health care, in addition to their tuition costs, which the hardship fund doesn't cover.

Karuhogo, a psychology student from Uganda, said while she's seen students from Canada struggling, international students often have an even harder time keeping up with rising costs because they're only allowed to work 20 hours a week at off-campus jobs during the school year.

Jeffrey MacDonald, a spokesperson for Immigration, Refugees and Citizenship Canada, said in an email that international students who want to work more can apply for an additional work permit.

They can also work full-time off-campus during school breaks, he said.

'Double whammy' for students

Brandon University nursing student Olufunke Adeleye is already working two jobs. But as expenses increase, she's had to look for ways to trim her budget, like buying and cooking food in bulk to save money.

"It's a lot of balancing," Adeleye said.

"It's easy to get overwhelmed. It's easy to get disturbed, discouraged. It's easy to get defeated."

While the Manitoba government has announced financial help for some people struggling with rising costs, students so far haven't gotten a lifeline — something she hopes will be considered amid the high inflation levels.

"It's those who are in the bottom of the food chain that eventually feel it the most," said Adeleye, who's also president of the Brandon University Students' Union. 

"So that's a big concern, especially for students."

With expenses up, it's "almost inevitable" students without much savings will have to rely on borrowing, said Fletcher Baragar, an associate professor of economics at the University of Manitoba — but the cost of that has gone up too.

"So it's a double whammy in a way," he said.

That's likely to increase student debt levels, which can have far-reaching consequences, said Baragar.

For one thing, it could take longer before students can put money away for things like a down payment or retirement fund.

Increased debt can also ramp up pressure for new graduates to start paying off their loans as soon as possible by taking the first job they see, instead of taking time to find the right fit. That can increase the chance they'll quit down the line, leading to a less-productive labour market, Baragar said.

Measures like freezing tuition rates and energy costs, or putting more money into affordable housing, could help alleviate some of the financial strain on students, he said.

"That's a sector of the population that, to a considerable extent, is on fixed or limited incomes," Baragar said.

"So if they're facing higher prices, it would seem to me that if you've got some policy measures that can offset at least the rise in some prices, then I think that would be a useful policy lever to pull."

Hoping for relief

A provincial spokesperson said in an email that Manitoba has kept tuition increases below the rate of inflation for the upcoming school year. The province also recently completed consultations, including with student associations, for its new policy on tuition and student fees.

At the University of Manitoba, Karuhogo said the student union is looking into topping up its hardship fund, especially since the number of people needing help usually peaks in the fall or winter.

But she hopes the province will also look at ways it can help students straining under rising costs.

"If the government stands up and looks at the fact that students are struggling … [and offers] more resources for the students, that will be a really huge push for all of us," Karuhogo said.

Manitoba students struggle to keep up with rising costs

2 years ago

Duration 2:16

The new school year has barely started, but more than half the money in an emergency fund for struggling students at Manitoba's largest university is already wiped out as the high cost of living strains budgets.