Minister of Education on side with Post-secondary students

"I am fully behind post-secondary students in their efforts to reduce student debt load. I know that many students face challenges in finding work in their field of study and having the resources to pay off their loans after graduation. I am very concerned about this and I think government�s actions over the past few years demonstrate that we are working towards solutions," said Judy Foote, Minister of Education, today.

Government, at every level, has been lobbying and continues to lobby the federal government to restore transfer payments to the provinces for post-secondary education. "The Premier at first ministers� conferences, the Finance Minister at federal finance meetings, and I as Minister of Education, at meetings of the Council of Ministers of Education, have consistently raised the issue of restoring transfer payments for post-secondary education. We must continue to work together, the students and the provincial government, to lobby the federal government to restore transfer payments," added Minister Foote.

In 1999/2000, the province will spend $180 million on post-secondary education.

In an effort to reduce the cost of post-secondary education to students, the following measures have been implemented:

- Tuition has been frozen for two years - this year and next - at a cost of $24 million.

- Government matched the $25 million private sector contribution to MUN�s opportunity fund, $15 million of which is designated for scholarship and fellowship endowment.

- Last year, $4 million was invested in a Student Awards Program as a bridging mechanism to the introduction of the Millennium Scholarship Fund.

In addition, there are programs in place to address student debt:

- No student is required to make any student loan payments for six months after graduation.

- The Loan Remissions Program pays off the majority of the provincial portion of a student loan for students who successfully complete their program within the scheduled completion date plus one year, and who have a debt in excess of $22,016.

- Under the Interest Relief Program, the province will pay the interest on students� loans for up to 18 months under the current agreement and up to 30 months (or 54 in exceptional circumstances) under the proposed new agreement. During this time, students make no loan payments. Under the new agreement, a student could be payment free for five full years.

A full review of the Student Aid program is currently underway and students will be consulted during this process.

"We will be looking at all means of reducing student debt, including the possible lowering of tuition, employment opportunities for students and any options that would make post-secondary education more affordable and accessible for students," said Ms. Foote.

Media contact: Andrea Maunder, Communications, (709) 729-0048.

2000 02 02                                                 6:15 p.m.