Debt Reduction Awards To Double

Recent college and university graduates can keep more of their earnings, after improvements to the province's student assistance program come into effect today, Aug. 1.

The employment bonus, currently 25 per cent of a graduate's initial debt reduction award, will rise to 50 per cent on Aug. 1. The repayment bonus, currently 10 per cent of a graduate's initial debt reduction award, will rise to 20 per cent.

"We're doubling these bonuses to make a college or university education more affordable for more Nova Scotians," said Minister of Education Karen Casey.

An individual can first apply for debt reduction within three months of graduation.

A graduate can apply for an employment bonus after working full-time in Nova Scotia for at least 50 weeks within three years of graduation.

A graduate can apply for the repayment bonus after making 12 full payments against their Nova Scotia student loan within three years of graduation.

A person who receives an initial debt reduction award after graduation, and the two increased bonuses after Aug. 1, can reduce his or her Nova Scotia student loan balance by up to 51 per cent.

"Our debt reduction program provides an incentive for students to graduate, to remain in the province, and to make payments on their loans," said Ms. Casey.

By the end of 2005-2006, the Department of Education processed more than 4,000 applications and forgave $3.2 million worth of student debt. At the same time, the province accrued $13.9 million in anticipation of debt reduction program applications from students who are currently pursuing their studies.

"This government is making it easier for our graduates to remain in Nova Scotia and prosper," said Ms. Casey. "We're making economic investments to spur job creation and investments in our youth to ensure we have a skilled workforce."

The province expects to issue $46 million in student loans this year.

For more information about the debt reduction program, contact the Department of Education at 1-800-565-8420 (toll-free, Canada-wide) or 424-8420 in metro.