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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.


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