More needed for debt relief, say students
A provincial scheme to reduce student-loan debt for university graduates took effect Tuesday, but critics say the measures don’t go far enough to help those struggling to pay Nova Scotia’s high tuition fees.
The Education Department has announced that graduates could reduce the amount they owe on their Nova Scotia student loans by 51 per cent under its plan.
"Our debt reduction program provides an incentive for students to graduate, to remain in the province and to make payments on their loans," Education Minister Karen Casey said in a news release.
Graduates can apply to the province for debt forgiveness. The amount forgiven starts at 15 per cent of what was borrowed in the first year and increases by 10 percentage points for each year the student received a loan.
As of this month, graduates will be entitled to have their debts reduced by a further 50 per cent of that forgiven amount as part of an employment bonus if they have worked full-time in Nova Scotia for at least 50 weeks within three years of finishing university.
Graduates will also be able to have an additional 20 per cent of their debt forgiven as a repayment bonus after making 12 full payments against their student loan within three months of graduation. The previous amounts for the employment and repayment bonuses were 25 per cent and 10 per cent respectively.
"It’s definitely not enough," Danielle Sampson, Nova Scotia representative with the Canadian Federation of Students, said. "The program doesn’t go far enough.
"Students have to incur massive amounts of debt in the first place to be able to take advantage of these programs."
The maximum amount someone can receive each year through a Nova Scotia student loan is $5,100. After four years — the typical amount of time an undergraduate degree takes to complete — the amount borrowed under this part of the student loan program would equal $20,400. The province calculates that under its debt-forgiveness plan with the increased employment and repayment bonuses, graduates could avoid repaying $10,404.
Ms. Sampson said the province could better spend its money on grants for university students.
"Nova Scotia is one of the only provinces in the country without a system of needs-based grants," she said. "Those grants would allow low-income students to avoid taking on those debts in the first place."
Jennine MacNeil, a fourth-year arts student at Dalhousie University, said she expects to graduate with about $45,000 in debt, but the province’s loan forgiveness program won’t help her a bit.
That’s because she was denied a Nova Scotia student loan when she applied and has had to work 40 hours a week at two jobs — in a pizza restaurant and clothing store — while attending university to pay her way.
"My parents certainly can’t afford to just throw out $40,000," Ms. MacNeil, 22, said. "I had to get a student line of credit one year."
She wants to stay in Nova Scotia but will have to leave for up to five years after graduating because of the poor job market in the province. She doubts the province’s debt-reduction plan will be enough to entice any graduate to stick around, contrary to the minister’s claims.
Source: http://thechronicleherald.ca/NovaScotia/519453.html
The Education Department has announced that graduates could reduce the amount they owe on their Nova Scotia student loans by 51 per cent under its plan.
"Our debt reduction program provides an incentive for students to graduate, to remain in the province and to make payments on their loans," Education Minister Karen Casey said in a news release.
Graduates can apply to the province for debt forgiveness. The amount forgiven starts at 15 per cent of what was borrowed in the first year and increases by 10 percentage points for each year the student received a loan.
As of this month, graduates will be entitled to have their debts reduced by a further 50 per cent of that forgiven amount as part of an employment bonus if they have worked full-time in Nova Scotia for at least 50 weeks within three years of finishing university.
Graduates will also be able to have an additional 20 per cent of their debt forgiven as a repayment bonus after making 12 full payments against their student loan within three months of graduation. The previous amounts for the employment and repayment bonuses were 25 per cent and 10 per cent respectively.
"It’s definitely not enough," Danielle Sampson, Nova Scotia representative with the Canadian Federation of Students, said. "The program doesn’t go far enough.
"Students have to incur massive amounts of debt in the first place to be able to take advantage of these programs."
The maximum amount someone can receive each year through a Nova Scotia student loan is $5,100. After four years — the typical amount of time an undergraduate degree takes to complete — the amount borrowed under this part of the student loan program would equal $20,400. The province calculates that under its debt-forgiveness plan with the increased employment and repayment bonuses, graduates could avoid repaying $10,404.
Ms. Sampson said the province could better spend its money on grants for university students.
"Nova Scotia is one of the only provinces in the country without a system of needs-based grants," she said. "Those grants would allow low-income students to avoid taking on those debts in the first place."
Jennine MacNeil, a fourth-year arts student at Dalhousie University, said she expects to graduate with about $45,000 in debt, but the province’s loan forgiveness program won’t help her a bit.
That’s because she was denied a Nova Scotia student loan when she applied and has had to work 40 hours a week at two jobs — in a pizza restaurant and clothing store — while attending university to pay her way.
"My parents certainly can’t afford to just throw out $40,000," Ms. MacNeil, 22, said. "I had to get a student line of credit one year."
She wants to stay in Nova Scotia but will have to leave for up to five years after graduating because of the poor job market in the province. She doubts the province’s debt-reduction plan will be enough to entice any graduate to stick around, contrary to the minister’s claims.
Source: http://thechronicleherald.ca/NovaScotia/519453.html
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