TORONTO - Ontario's university students are being "punished" for studying in the province, education advocates said Thursday after Statistics Canada reported tuition fees in Ontario are the highest in the country.

StatsCan found that, on average, the province's undergraduates are paying $6,307 a year, while students in Quebec continue to have the lowest tuition fees at $2,415.

The province's undergraduate fees have increased by 5.4 per cent, and the Canadian Federation of Students, Ontario, said graduate fees have spiked 10 per cent.

"In the current economic climate, Ontarians need their government to create the opportunities that will provide a brighter future for this province," said Hamid Osman, the group's Ontario representative.

"Students shouldn't be punished for choosing to study in Ontario and that is exactly what this government's funding model is accomplishing."

The federation, which represents more than 300,000 college and university students across the province, says it's the second year in a row that Ontario students have had the highest fees and it's calling on the government to do something about the steadily rising costs.

"Having this record is embarrassing and Premier Dalton McGuinty must address these ballooning costs if Ontario's reputation for offering affordable and quality education is going to be salvaged," said chairwoman Sandy Hudson.

Kimalee Phillip of the National Graduate Caucus said increasing graduate tuition fees are threatening Canada's future economic success.

"Government divestment in higher education has left students buried in debt and Canada ranked dead last among peer countries for PhD graduation," Phillip said.

Graduate tuition fees rose by an average of 6.6 per cent to over $6,400 this year, while inflation was only 1.8 per cent over the year to July 2010.

Phillip also argued that tuition fees are significantly higher than Statistics Canada is reporting.

"By choosing to exclude MBAs from their calculations Statistics Canada is fudging the numbers," Phillip said.

A study published Thursday in a British magazine placed one Ontario university among the world's best.

The University of Toronto placed 17th in the annual Times Higher Education study, which evaluates 200 universities around the world. Rankings were determined based on such factors as the number of doctorates awarded, the number of papers published and the amount of funding dedicated to research.

Ontario's minister of training, colleges and universities countered that "thousands and thousands" more students are choosing to study at the province's universities each year.

"We have 20,000 more students this fall alone," said John Milloy.

"Independent studies have shown that we have one of the most generous student assistance programs," he said. "The default rate in terms of student loans has decreased."

NDP colleges and universities critic Rosario Marchese said the legacy of the higher fees will be students with "incredible" tuition debt.

"I'm profoundly worried about the sociological effects it has on individuals that leave university with incredible debts," he said. "It's simply wrong."

Progressive Conservative Leader Tim Hudak said the higher tuition fees are just another financial drag on Ontario residents.

"Ontario families won't be able to achieve that great dream of having their kids be more successful," Hudak said.

Tuition fees remained unchanged in Newfoundland and Labrador ($2,624 in 2010/11) and New Brunswick ($5,516), while for a third year in a row, fees declined in Nova Scotia, to $5,495.

Tuition fees increased in the other provinces; 1.5 per cent in Alberta (to $5,318) two per cent in B.C. (to $4,802), 3.3 per cent in P.E.I. (to $5,131), 4.6 per cent in Quebec, five per cent in Saskatchewan (to $5,431), 5.3 per cent in Manitoba (to $3,588) and 5.4 per cent in Ontario.