OTTAWA--The second iteration of the 2011 federal budget once again fails to make post-secondary education affordable for most Canadians.

"Record-high levels of student debt threaten Canada's economic prosperity," said Roxanne Dubois, National Chairperson of the Canadian Federation of Students. "Record high student debt acts as an unfair barrier to starting a family, purchasing a home, or saving for retirement."

Federal transfer payments for post-secondary education remains approximately $410 million short of 1992 levels when accounting for inflation and population growth. As a result, universities and colleges are relying increasingly on private funding, primarily in the form of tuition fees. Between 1978 and 2008, the proportion of university operating revenue provided by government sources declined from 84% to 58% while the proportion funded by tuition fees` increased from 12% to 35%.

Student debt owed to the federal government surpassed $15 billion for the first time in September 2010. The federal government currently spends over $2.5 billion on ineffective education-related tax credits and savings schemes that disproportionately benefit the wealthiest Canadians, money that could easily be redirected to increasing the value and number of non-repayable student grants.

"The federal government has missed another opportunity to address the student debt crisis," added Dubois. "Without a national strategy for higher education, tuition fees and student debt will continue to rise, threatening to bankrupt a generation."

The Canadian Federation of Students is Canada's largest student organisation, uniting more that one-half million students in all ten provinces. The Canadian Federation of Students and its predecessor organisations have represented students in Canada since 1927.