The New Brunswick Student Alliance believes the government of Newfoundland and Labrador is setting a good example by reducing the debt burden on students.
Executive Director Lindsay Handren says the provincial portion of student loans are now non-repayable grants.
“It’s upfront funds coming from the government to support students in their studies, that they don’t have to pay back,” says Handren.
The Newfoundland and Labrador experiment is quite costly, an estimated 50 million dollars over the next few years.
“Student debt really has two major consequences, the one being that students leave, there’s the outmigration because they’re looking for better jobs outside the province to pay off the debt,” says Handren.
Handrin says the Gallant government could learn from the Newfoundland approach.
“That’s a model we could look at and start to reinvest some of the money that they’ve taken, particularly from the tuition rebate into, at the very least, some needs based, targeted grants that could help those students who are really in need,” says Handren.
She adds New Brunswick may not be able to afford taking over all the provincial debt payment, but lower debt for graduates reaps benefits down the line because they can buy a house, or start a family and begin contributing to the provincial economy.
