Province Doubles Student Loan Debt Reduction Bonuses

College and university students from Nova Scotia are getting a break on the cost of their education, following improvements to the province's student loan debt reduction program.

In a statement to the House today, Thursday, Nov. 3, Education Minister Jamie Muir announced that the program's employment and repayment bonuses are being doubled. The change will come into effect on Aug. 1, 2006.

"We have made college and university education more attractive to Nova Scotians, made it easier for Nova Scotian graduates to use their newfound knowledge here at home, and set the stage for timely repayment of student loans, money that we can re-invest in the province's scholars," said Mr. Muir.

A Nova Scotian university or college student who works in the province for a minimum of 50 weeks in the three years immediately following graduation is eligible for a bonus equal to 50 per cent of the debt reduction award they received at graduation.

A Nova Scotian university or college student who makes a minimum of 12 payments on their Nova Scotia student loans in the three years immediately following graduation is eligible for a bonus equal to 20 per cent of the debt reduction award they received at graduation.

Combined with other student assistance programs, a Nova Scotian student who completes his or her studies in Canada could have up to 60 per cent of his or her provincial student loan eliminated.

This is not the first time the government of Nova Scotia has improved its Student Loan Debt Reduction Program since it was introduced in 2003. The province's original $5.1-million investment was increased by $1.3 million in 2004 to ensure there were adequate funds in the program to meet anticipated demand.

Doubling the employment and repayment bonuses will increase the province's investment to $7.6 million.

To date, the province has received 3,567 applications for the debt reduction program and paid out $2.5 million. In total, $8.2 million has been accrued to meet future demand, in compliance with government accounting rules.

The Department of Education has advertised the program in provincial media, met with college and university registrars, made presentations to graduating classes and directly contacted eligible students to make them aware of the program.