NLIS 4
March 25, 2002
(Youth Services and Post-Secondary Education)
Minister announces changes to
student aid program
Sandra C. Kelly, Minister of Youth Services
and Post-Secondary Education, today announced changes to the student aid
program aimed at reducing student debt and making post-secondary education
more affordable.
"I am very pleased with the changes that
have been announced today," said Minister Kelly. "Post-secondary
students have been asking for help in minimizing debt and repaying their
student loans. These new initiatives will assist many students in
Newfoundland and Labrador, particularly those who require a high level of
financial aid."
The changes to the student aid program will
become effective on August 1, 2002. They include the following:
"These changes are the result of the
thorough work of the review committee which included representatives from
students groups, private training institutions, the College of the North
Atlantic and Memorial University," said Minister Kelly. "As well,
extensive consultations were held to ensure the recommendations of the
committee addressed the concerns of all stakeholders. Government has
listened and the result is a renewed program that focuses on the shared
responsibility of students, parents, government and educational institutions
for post-secondary education.
"It is important that students and their
parents plan for post-secondary education and government will do its part by
introducing new debt reduction grants, financial and career planning
services and several other measures to support students pursuing
post-secondary education.
"The changes announced today will ensure
that our youth and adult learners have every chance to avail of the
educational opportunities open to them. I feel confident in saying
without reservation that Newfoundland and Labrador has one of the best
student financial assistance programs in the country."
Details on the changes to the Student
Financial Assistance Program are available on the following Web site: //www.edu.gov.nf.ca/studentaid/
Media contact: Janice Lockyer,
Communications, (709) 729-6573
BACKGROUNDER
- To address the high levels of debt
acquired by post-secondary students in the province Government undertook
a comprehensive review of the Student Loans Program after completing an
internal review. A broad based committee was established with
representation from the Premier�s Council on Social Development,
Memorial University, the College of the North Atlantic, the Newfoundland
and Labrador Association of Career Colleges, the Canadian Federation of
Students, as well as government officials.
- The committee submitted a draft report
which formed the basis for extensive consultations with stakeholder
groups. Based on these consultations government is implementing a number
of improvements to the Student Aid program. The following changes to the
Newfoundland and Labrador Student Loans Program are effective August 1,
2002:
New Debt
Reduction Grants
Benefits:
- Up to the full amount of the Newfoundland
and Labrador Student Loan may be converted into a non-repayable grant;
- There is no application process for debt
reduction grants - students will be contacted directly;
- Debt reduction grants are earned on a
semester basis by semester, and students will be notified annually, and;
- Special provisions will be made to
accommodate students who have extenuating circumstances.
To be eligible students must:
- Graduate from a qualifying post-secondary
program that is at least 80 weeks in duration;
- Borrow more than $165 per borrowing week
during a given semester;
- Be successful in at least 80 per cent of a
full course load in a given semester, except when it has been determined
that there are extenuating circumstances, and;
- Apply and be deemed eligible to borrow for
at least half of the required length of their post-secondary program.
For students who pass a full course load:
Grant is equal to the amount borrowed in
excess of $165 per borrowing week, and is applied directly against
provincial loan.
For students who pass 80 per cent of a full
course load:
Grant is equal to half of the amount borrowed
in excess of $165 per borrowing week, and is applied directly against
provincial loan.
During the first two years of the new
program, graduating students are eligible under either the new Debt
Reduction Grants or the old Loan Remission Program.
Enhanced
Interest Relief
Benefits:
- Interest relief assistance, up to the
maximum of 30 months, available at any point during the repayment of the
loan;
- An additional 24 months of assistance
available within the first five years of repayment for those who
experience extreme financial hardship;
- An improved application process.
Students
Retain More of their Earnings
The assessment of resources is changed such
that students contribute only 50 per cent of their study period income while
in school.
Increased
Loans for MUN Medical Students
Provincial loan assistance for this group of
students increases to $200 per study week for a total of up to $365 per week
combined loan.
Grants
for Early Childhood Education Students
Non-repayable grant available to a defined
number of students in early childhood education programs in accordance with
labour market demands.
Better
Communications and Counseling
- Annual notification of grants and
assistance received, academic progression and remaining eligibility;
- Improved information to students, parents
and educational institutions on repayment obligations and procedures;
- New call centre service and on-line
applications for better service and shorter application processing;
- Increased promotion of programs such as
Interest Relief and Debt Reduction Grants, and;
- Student Aid Office to provide financial
and career counselling.
New
Institutional Designation Policy
Some features:
- Have a refund policy for students and
acceptable entrance requirements;
- Have a default prevention plan;
- Provide information on graduate outcomes
and counseling to students.
New
Eligibility Requirements
- Students must enroll in at least 80 per
cent of a full course load.
- For example, if a full course load is five
courses, a Memorial University student must register for a minimum of
four courses to be eligible for assistance.
- Students are eligible for student loans
for the normal length of a program plus a grace period of up to two
semesters.
- For example, students completing a four
year (eight semester) degree program at Memorial University are eligible
to borrow for a maximum of five years (10 semesters).
- Students maintain their eligibility for
assistance by progressing satisfactorily in their program of studies. In
general, students are expected to successfully complete 80 per cent of a
full course load. However, a one semester grace period is available when
a student may drop to 60 per cent of a full course load without
affecting eligibility.
- Students who wish to switch programs may
do so without a review, prior to the beginning of the fifth semester, or
the mid point of the program, whichever occurs first.
- Students may receive assistance for
programs of study beyond the initial program where it can be
demonstrated that the subsequent program(s) represent academic
progression, have good labour market prospects, and do not leave the
student with an unmanageable level of debt.
- Students who do not meet the eligibility
criteria due to extenuating circumstances will have access to a timely
review process.
Extenuating
Circumstances
Certain students may enroll in 60 per cent of
a full course load and still be eligible for full-time assistance if there
are extenuating circumstances.
- A single parent student who:
- has a child(ren) under 12 years of
age; and,
- is enrolled in at least one university
credit course requiring lab time in addition to regular classroom
time; or,
- has a child(ren) with special needs;
or,
- has other personal circumstances that
merit special consideration|
- A student who experiences a severe medical
condition or trauma that merits special consideration
- A student with a physical or mental
impairment that restricts their ability to perform the daily activities
necessary to participate in post-secondary studies and is expected to
remain for their expected natural life (i.e. permanent disability) may
be eligible for full-time assistance if enrolled in a period of studies
which constitute not less than 40 per cent of a full course load.
Normally, all others students are expected to
complete at least 80 per cent of a full course load.
Applicants will be required to provide
documentation to support their request for full-time assistance when doing
less than 80 per cent of a full course load.
Students approved to enroll in less than 80
per cent of a full course load due to extenuating circumstances are eligible
for debt reduction grants.
Ministerial
Statement - Changes to student loans program
2002 03
25
3:25 p.m.
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