Education
May 15, 2009
Amendments Build on Previous Initiatives to
Reduce Student Debt
Bill 9, an act to amend the Student
Financial Assistance Act to allow for the elimination of interest on
provincial student loans was passed in the House of Assembly today. The
initiative is one of several actions announced in Budget 2009 with an
allocation of $10.9 million to further help reduce student debt, and
make post-secondary education in Newfoundland and Labrador more
affordable for more people.
�The elimination of interest on provincial student loans has cemented
this province�s position as a leader across the nation in
forward-thinking, innovative initiatives to help increase accessibility
to post-secondary education and training,� said the Honourable Darin
King, Minister of Education. �Students and graduates from across the
province identified interest elimination as a priority and one that
would have substantial positive impact on helping reduce their
debt-load. I am pleased to report that this province is the first
jurisdiction in the country to take this action to support past, current
and future students.�
Minister King noted that there are 49,000 people who are repaying their
student loans who will no longer have to pay interest. In addition to
the elimination of interest, investments in Budget 2009 include an
increase in the amount of financial assistance students can access in
up-front, non-repayable, needs-based grants, and a decrease in the
amount of spousal contributions which will give married students greater
access to assistance. This year, 8,400 students are expected to receive
non-repayable grants.
Both interest elimination and increases to non-repayable grants are
effective as of August 1, 2009. The changes are automatic.
The improvements to student financial assistance announced in Budget
2009 build on previous initiatives of the Williams Government to support
the public post-secondary education system. This includes a freeze on
tuition fees, which has been maintained this year with an investment of
$5.9 million, bringing the total investment in this initiative to
approximately $71 million since 2005.
Advances have also been made to increase the amount of funding to the
province�s post-secondary institutions. For example, funding to Memorial
University alone has increased from $145.3 million to $282.2 million in
just five years.
�Education is the highest priority for our government,� said Minister
King. �We know that education is critical to our success, to the success
of every Newfoundlander and Labradorian and ultimately, the success of
our province. We know there is great value in supporting our young
people. And the result is an empowered people, a strong, prosperous
province and a thriving business environment.
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Media contact:
Jacquelyn Howard
Director of Communications
Department of Education
709-729-0048, 689-2624
jacquelynhoward@gov.nl.ca
2009 05 15
12:45 p.m. |