Regulation change helps clients with dependents access post-secondary education

Paul Shelley, Minister of Human Resources, Labour and Employment, and Joan Burke, Minister of Education and Minister Responsible for the Status of Women, announced today that government will eliminate the claw-back of the Student Loan Shelter Allowance for students with dependent children receiving income support. Effective immediately, regulations under the Income and Employment Support Act will be amended to exempt payments for shelter and living expenses received through the Student Loan Program.

Currently, students with dependents receiving income support are required to borrow the maximum amount of student loan available. In order to still receive benefits, clients must then repay the shelter allowance back to income support.

"We recognize that this regulation is regressive and can make it more difficult for people receiving income support to pursue post-secondary education," said Minister Shelley. "It is our hope that the change in regulations will encourage individual achievement and remove barriers to employment by making post-secondary education a viable option for more of our clients."

Students have been required to repay approximately $1,300 to $1,700 per semester depending on the institution they attend. "This is especially prohibitive for single parents, many of whom are women," said Minister Burke. "The change we are announcing today means that these individuals won�t have to borrow as much in student loans, resulting in less debt. In addition, they will no longer see a reduction in their income support benefits in order to repay their shelter allowance."

"Eliminating the claw-back of income support payments for university and college students will increase access to post-secondary education," said Jessica Magalios, Newfoundland and Labrador chairperson of the Canadian Federation of Students. "The federation highlighted this issue during government consultations for the Poverty Reduction Strategy and throughout the year in meetings with and submissions to government. Students are pleased that government has decided to respond positively and change its policy."

The amendment supports government�s White Paper on Postsecondary Education which aims to make post-secondary education more affordable and accessible. It affirms government�s commitment to move forward with the Poverty Reduction Action Plan.

The ministers said they will continue to work to ensure that policies and regulations assist those who wish to advance their education and prepare for future job opportunities.

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2006 07 31                                        2:50 p.m.