Amendments to the Student Financial Assistance Act to Enhance
Student Aid Program in Newfoundland and Labrador

Line-ups at educational institutions for students to pick-up and sign loan certificates will soon be a thing of the past in Newfoundland and Labrador. The Provincial Government has introduced amendments to the Student Financial Assistance Act, which will help to improve the province’s student aid system. The amendments will allow two service delivery initiatives to occur. These initiatives, developed by the Federal and Provincial Governments – Master Student Financial Assistance Agreement and Electronic Confirmation of Enrolment – will further enhance service delivery to students and educational institutions.

“Our department is always looking for new and innovative ways of improving program and service delivery,” said the Honourable Joan Burke, Minister of Advanced Education and Skills. “These initiatives will improve the student aid program by reducing red tape and ultimately providing a more efficient system for students and educational institutions.”

The Master Student Financial Assistance Agreement will allow a student, when approved for their first student loan, to sign one agreement which will be valid for the life of their borrowing, provided the student does not have a break in borrowing of more than two years. This agreement will eliminate the requirement for processing loan certificates every semester. Currently, students could be required to sign as many as 10 agreements for a five-year degree.

Electronic Confirmation of Enrolment is a process where educational institutions electronically confirm full-time enrolment of students as well as changes to student status. Currently, for all educational institutions, with the exception of Memorial University, this process is completed manually. The goal of the new automated system is to improve administrative processes, ultimately creating a simpler and more efficient system for students and educational institutions. This system will allow for a much faster delivery of funds; students will no longer have to line-up at their educational institution to pick up a loan certificate and forward completed documents through the postal system to the National Student Loans Service Centre.

Since 2005, the Provincial Government has invested $138 million to support the reduction of student debt through a tuition freeze at Memorial University and College of the North Atlantic. Other actions to support post-secondary students include an introduction of non-repayable grants and the elimination of interest on student loans.

“These latest initiatives are just another way this government is helping to ensure accessible post-secondary education for Newfoundlanders and Labradorians,” said Minister Burke. “In today’s economy, education is vital for success. We want to ensure students have everything they need to achieve the greatest benefit from the opportunities that exist in our province. These program improvements will help ensure we continue to have the best student aid program in the country.”

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Media contact:
John Tompkins
Director of Communications
Department of Advanced Education and Skills
709-729-0753, 728-7762
jtompkins@gov.nl.ca

2012 06 04                           4:20 p.m.