The Provincial Government is providing $12.4 million this year to fund non-repayable grants to post-secondary students. Approximately 7,000 of the 10,000 students receiving student loans will benefit from the up-front, needs-based grant program that was introduced by the Williams Government in 2007 as a means to help reduce student debt. This year�s grants will be distributed over the coming weeks.

"This is just one initiative that makes the student loan program in Newfoundland and Labrador the envy of students nationwide," said the Honourable Joan Burke, Minister of Education. "Up-front grants were clearly identified by student representatives as a means to help reduce student debt. We listened closely to their views and recommendations and we are making great strides on this front with a system that is increasingly more affordable and accessible."

For those who are assessed with maximum need, the grant can mean that the provincial portion of their student loan will be cut in half. In addition to non-repayable grants, students continue to benefit from a tuition freeze � at a cost of $30.6 million over the past four years. As well, students who borrow the maximum and complete their programs on time can potentially have the entire portion of the provincial student loan eliminated through the debt reduction grant program.

The Provincial Government is also using a new formula to calculate the amount of money parents must contribute to a student�s education, allowing more students to qualify for assistance. Finally, $3.7 million is being invested annually to reduce interest charged on student loans from prime plus 2.5 per cent to prime. This initiative has assisted approximately 46,000 to date who are in repayment of their student loans.

Students attending Memorial University, including Grenfell College and the Marine Institute, will have their grants deposited directly into their bank accounts. Students at College of the North Atlantic, a private college, or those attending another institution within Canada can pick up their cheques at the institution they attend. Out-of-country students will have their cheques sent to their permanent address in Canada. Grants are generally issued six weeks after the start of classes, and letters will be mailed shortly to students outlining the process.

"Since 2003, our investments in post-secondary education have increased by an incredible 52 per cent," said Minister Burke. "Education is not a privilege, it is a right and supporting our post-secondary education system continues to be a high priority for our government."

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

2008 10 10                                                    10:15 a.m.