Government provides debt relief, some conditions apply
The New Brunswick provincial government introduced the Timely Completion Benefit this summer, a program set up to cap student debt.
University students in the province can now accumulate no more than $26, 000 in debt from government issued student loans, as long as they complete their degrees within the prescribed period of time.
It’s estimated that students here graduate with $34, 000 worth of debt.
The debt cap program is a response to lobbying from the New Brunswick Students’ Association (NBSA) on behalf of student groups across the province.
It was announced in last year’s budget, which included a number of financial aid updates.
NBSA President Duncan Gallant called the updates “The most progressive and comprehensive in the history of post secondary education in New Brunswick”.
But the program isn’t running exactly as the NBSA hoped.
The group initially lobbied the government for a $6,000/year loan cap, so that students would be faced with no more than $24,000 debt after completing a four year program.
“There’s still a lot of students who won’t be eligible for this program, so we want to seek further improvement,” said Gallant. “Generally those students that require five or six years to finish their (undergraduate) program, or drop from one program to take on another… won’t be counted as part of the Timely Completion Benefit.”
Gallant says the Timely Completion Benefit will include an appeals process for students with outstanding circumstances and could not complete their programs on time. He says special consideration will likely be made for students with children, students who become ill, or with other special cases.
STU students’ union Vice President Education Ella Henry says the benefit neglects a large group of people who cannot afford post-secondary education.
“Having a benefit that students may or may not get at the end of their degree doesn’t actually do anything to reduce the upfront cost of education,” she said.
“(The Timely Completion Benefit) excludes a lot of students who really need it most, especially when a lot of students who have large student loans are also working quite a bit. And students who are working two, three part time jobs are often taking a reduced course load.”
The NBSA is gathering stories of students who won’t be eligible for the Timely Competition Benefit. Henry pointed out that students who incur more than $26,000 debt in a second-degree program, like STU’s education and social work programs, still won’t be eligible for the benefit.
Gallant encouraged recent graduated who don’t meet the program’s criteria to apply anyway and pursue an appeal.
