Budget Bulletin: Investing In Our Students
- $5.1 million for student debt reduction
- $6 million more for universities
A post-secondary education is becoming increasingly important for Nova Scotians' success in the job market and our province's success in the global economy. It's also becoming increasingly expensive.
In response, government has given universities an extra $6 million in the 2002-03 fiscal year. The increase will be included in the base funding for universities in 2004-05. It will help maintain quality programs for students and keep tuition increases to a minimum.
A new $5.1-million student debt-reduction program will help post- secondary students manage their debt. The program is designed to be flexible for the many ways in which students complete their post-secondary education. It aims to help the greatest number of students possible with the resources we have.
While half of our students have their own means of financing their post-secondary education, there are 18,000 students each year who receive Canada Student Loans.
About 9,800 of these students also receive Nova Scotia Student Loans. These are the students who are in greatest need of financial assistance. They are also the students who have higher debt loads upon graduation.
The amount of debt reduction each student receives through the new program will depend on many variables, including program length, successful completion of courses, the number of years the student had loans, and the number of years he or she took to complete the degree or diploma.
All students who receive Nova Scotia Student Loans in the academic year beginning August 1, 2003, study in Canada, and successfully complete full-time course loads will be eligible for debt reduction. They will apply for assistance through the new program after they have graduated. The money will be paid directly to the bank and applied to the student's debt.
Students can get loans for each year of their programs, plus one extra year. For example, a student can get a maximum of five years of loans for a four-year university degree.
The amount of debt reduction will change for each year of loan. For example, if a university student has loans and studies for four years, she will receive 15 per cent of debt reduction for the first year, 25 per cent for the second, 35 per cent for the third, and 45 per cent for the fourth. If she studies for another year and has a loan, she will get 15 per cent for that fifth year.
The loan years need not be consecutive, but they must be within a certain time period for students to get the full benefit of the program. For example, debt reduction will be given for loans only within the seven-year period immediately preceding graduation from a four-year university degree.
Incentives have been built into the program to encourage graduates to work in Nova Scotia and repay their loans in a timely fashion. Students who work in Nova Scotia for 50 weeks within three years of graduation will be eligible for a bonus of 25 per cent of their debt reduction. Students who make 12 loan payments within three years of graduation will get an extra 10 per cent.
Community college and private career college students will also be eligible for assistance, following similar criteria based on different program lengths. More information is available at http://studentloans.ednet.ns.ca .
NOTE: For further 2003-04 budget information, visit the Department of Finance Web site at www.gov.ns.ca/finance .