Minister comments on student debt debate

Sandra Kelly, Minister of Youth Services and Post-Secondary Education, today clarified for the public statistics on average student debt in the province. "In a number of interviews and media reports recently, I have heard the problem of student debt in the province discussed and various statistics cited," said Minister Kelly. "I agree that student debt is a serious concern for many students and families in the province. Government has recognized this for some time and continues to develop measures that will ease the debt burden of our post-secondary students. Since 1998 tuition at Memorial University and the College of the North Atlantic has been frozen and in 2001, government provided funding that allowed Memorial to reduce its tuition by 10 per cent. The tuition fees at both Memorial University and the College of the North Atlantic are among the lowest in the country. In the near future, we will be announcing reforms to our student financial assistance program aimed at lowering student debt levels for those who need to access the student loan system."

"Open debate is healthy and leads to identification of choices and solutions," said Minister Kelly. "I am concerned, however, with recent statements in the media about the student debt picture in this province and feel some clarification is necessary. The figure that has been cited by the Canadian Federation of Students, is that the average debt of students across the board in this province is $30,000. This is incorrect. In fact, in Newfoundland and Labrador, for 2000-2001 the average debt of graduates who availed of student financial assistance was $20,400, down from the 1999-2000 average of $20,800. It is also worth noting that all post-secondary students do not avail of student financial assistance. In 2000-2001, only 54 per cent of full-time students at Memorial University and 30.6 per cent of full-time students at the College of the North Atlantic had a student loan. This government takes the issue of student debt very seriously and I think it�s important for students and the public to know that the majority of students are not emerging from their post-secondary education with debt levels in this range.

"The average debt for students completing undergraduate university programs has decreased by 12 per cent since 1998-1999. While this is a positive indicator, government remains concerned that obtaining a university degree or a college diploma from a program of lengthy duration creates a significant financial burden. That�s why we undertook the Student Aid Review."

"I would like to add that prospective post-secondary students need to ensure they are well informed about their career choices, program options and employment prospects. Government provides information that will help students and parents plan for and make decisions about their post-secondary education. Our publication CareerSearch provides information, on a program by program basis, about employment and earnings outcomes, the percentage of graduates with student loans and the average student loan upon graduation. The publication is widely distributed to high schools and career planning centres and is published on our Web site.

"Government wishes to encourage as many of our youth as possible to pursue post-secondary education. I believe the measures we have taken during recent years and the ones we will shortly announce reflect our strong commitment to do so." In closing the minister noted that the province�s loan remission program is one of the most generous in the country and called on the federal government to institute a similar debt reduction program for the federal portion of student loans.

Media contact: Janice Lockyer, (709) 729-6573.

2002 01 30                        10:25 a.m.