Legislation will establish Student Loan Corporation of Newfoundland and Labrador

John Ottenheimer, Minister of Education, was pleased to begin debate in the House of Assembly today, on Bill1: An Act to Amend the Student Financial Assistance Act, which will establish the Student Loan Corporation of Newfoundland and Labrador (SLC).

"The establishment of the Student Loan Corporation of Newfoundland and Labrador reflects government's firm commitment to providing a timely and directly financed student loan program through prompt and effective mechanisms," said Minister Ottenheimer. "It is good news for students and taxpayers, as government will be able to provide better service while improving the delivery of debt management tools."

With the passing of the bill, the Board of Directors of the SLC will be established. The board will report to the Minister of Education and will be comprised of the deputy minister of education as chair, deputy minister of finance and secretary of Treasury Board.

As a legal entity, the SLC will become the sole owner, dispenser, and collector of all provincial student loans. The establishment of the SLC will permit the implementation of the Canada-Newfoundland and Labrador Student Loan Integration Agreement, which will come into effect on April 1, 2004. Under the Integration Agreement, the province will lend funds through the SLC and receive loan payments from student borrowers via the National Student Loan Service Centre. The new federal-provincial loan administration process is designed around the principle of one student-one loan.

The minister noted that beyond the reformed administrative process, students will receive the same level of attention and service at the provincial level. "The province will continue to determine eligibility for provincial student loans, and will continue to set provincial loan policies. The Student Financial Services Division, located at Couglan College, will maintain the same level of excellent service it currently provides."

Media contact: Lynn Salter, Communications, (709) 729-0048

2004 03 22                                       4:35 p.m.