Government moves forward with Debt Reduction Grant program

Education Minister Tom Hedderson is pleased to announce today that the Department of Education has issued Debt Reduction Grant notices to qualifying Memorial University graduates.

The program became effective in August 2002 as a result of consultations during a comprehensive review of the provincial student loan program. The Loan Remission program expired on July 31 of this year. Graduates who have applied for loan remission have been assessed for benefits under both the Loan Remission and the new Debt Reduction Grant programs to ensure they receive the greatest benefit from either of these programs.

"This government is committed to ensuring that student financial assistance continues to provide access to post-secondary education," said Minister Hedderson.

Eligible students may see the full amount of their provincial student loan converted into a non-repayable grant. For example, it is possible that a person graduating with a combined federal and provincial student loan of $40,000 would receive a $16,000 debt reduction grant.

The minister said that the notices indicating the amount of grants to individual students should be received by eligible Memorial University graduates by the end of this week, excluding graduates of Marine Institute. Work will continue in processing files of graduates of Marine Institute, College of the North Atlantic, private colleges and post-secondary institutions outside the province. "Considerable effort is required to calculate these grants, and we expect all eligible grants will be processed by the end of December. Of course, all Debt Reduction Grants referenced are retroactive to August 1, 2002, the date the program came into effect."

Borrowers who believe they are entitled to more than the assessed amount have the option of appealing through the Student Financial Assistance office.

The provincial government's contribution to student debt reduction since August 2002 is approximately $15 million.

For more information, go to: //www.edu.gov.nf.ca/studentaidsystem/help.htm#drg

Media contact: Lynn Salter, Communications, 729-0048 or 685-5000

2004 10 06                         9:10 a.m.