Ironically, both the wealth and the debt of Canadian universities have reached record levels.

Latest figures from the Canadian Association of University Business Officers reveal the net value of all endowments has grown to $10.4 billion — a 55 per cent increase from the $6.7 billion reported in 2002. The University of Toronto has the largest endowment, surpassing $1.8 billion.

That nest egg generates further average annual assets worth $1 billion, largely for Canada’s eight biggest universities, which account for half the total value of all endowments.

In a separate study, valuing endowments by the amount invested as opposed to pledged, Standard and Poor’s lists universities by the size of endowment per full-time student enrolled. Queen’s University tops that list at nearly $32,000 for every full-time student enrolled. McGill is second with a per-student fund worth $28,692.

They are followed by the University of Toronto with $27,055 per student, the University of British Columbia at $26,471, and McMaster University at $20,289.

The CAUBO survey, which tracked 69 universities, attributes the rapid upswing in endowments since 2002 to ambitious efforts to raise money ($2.3 billion) coupled with improvements in investment return ($3.4 billion).

But despite the collective wealth of endowment funds, university debt has also skyrocketed.

A recent report issued by the Dominion Bond Rating Service found 13 Canadian universities owe more than $3 billion in long-term loans.

Most of the debt is attributed to renovation and construction projects, along with refinancing of existing debt. Typically, universities rely on operating revenues to pay down debt, while using endowment funds to support research and teaching positions and fund scholarships and bursaries.