Education
December 7, 2006

Debt Reduction Program Expanded to Accommodate Students
Enrolled in Co-operative Programs

Students in co-operative programs are now entitled to debt reduction grants for their work terms, thanks to government�s decision to rectify a shortfall in student financial assistance regulations.

In August 2002, significant changes were made to the student loan program, including the implementation of the Debt Reduction Grant (DRG) program. Under the program, students who borrow the maximum student loan each semester and complete a full course load, can have their provincial student debt eliminated. When the program was implemented four years ago, borrowers enrolled in paid work terms, in particular engineering students, were not qualifying for this grant.

"There is no logical reason why the debt reduction program should not be open to co-op students during their work-terms and we are ensuring this oversight is corrected. Effective immediately, and retroactive to August 2002, co-op students will have access to these grants," said the Honourable Joan Burke, Minister of Education.

Assessments will be completed by the end of the calendar year. Approximately 200 students are expected to benefit from this initiative at a cost of $1 million, and annually about 50 students should be eligible at a cost of $250,000. Students will be notified of their eligibility by the Department of Education.

The minister noted that this year saw an extra $60 million invested in post-secondary education. This is on top of the $90 million allocated to implement White Paper initiatives over a three-year period, including improvements to student financial assistance packages.

"It is unfortunate that the previous administration failed to include co-op students in this important debt reduction initiative. However, we will ensure all students who should have qualified for this grant will receive adjustments to their total provincial loan debt. Newfoundland and Labrador has one of the best student loan packages in the country, and we will continue to explore ways to make post-secondary education accessible and affordable for all," said the minister.

In 2005-06, over $7 million was invested by the provincial government to reduce student debt loads for approximately 1,300 students.

Inquiries can be directed to the Student Aid Division at 1-800-657-0800.

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Media contact:
Jacquelyn Howard
Director of Communications
Department of Education
709-729-0048, 689-2624
jacquelynhoward@gov.nl.ca

2006 12 07                                                   12:00 noon
 


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