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This paper analyzes the widely held view that university students are heavily subsidized because tuition amounts to one third of the cost of their educations. [The author] argue[s] 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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