Minister announces student loan agreement

The Department of Education has signed a new contract with the Canadian Imperial Bank of Commerce to provide student loan services for the next three years through CIBC�s national student centre operated by EDULINX Canada Corporation. The previous one-year agreement expired yesterday.

"I am pleased that students will continue to receive the same level of service with the same bank that has provided that service in the past," said Education Minister Judy Foote. "We have fulfilled our commitment to students to ensure the seamless continuation of the Newfoundland Student Loans Program."

The student loans will be issued under the same terms and conditions as before. Repayment obligations also remain the same. The Student Aid Division of the Department of Education will continue to assess and process applications, and there has been no change in how a student applies for a loan.

Approximately $65 million is lent out in new loans annually to approximately 20,000 post-secondary students in Newfoundland and Labrador.

The federal government announced yesterday that the Canada Student Loans Program will continue to be run by the major banks until the end of February. It will then be taken over by Human Resources Development Canada (HRDC)

Media contact: Viki O�Dea, Communications, (709) 729-1906.

2000 08 01                 5:10 p.m.