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Debt Reduction Grants

The program allows for up to the full amount of the provincial portion of a student loan to be converted into a non-repayable grant. There is no application process. Students are automatically assessed upon receipt of notification of graduation.

Eligibility

You are eligible if:

• you successfully complete at least 80% of a full course load each semester and/or academic year as determined by the educational institution;
• you apply and are deemed eligible for loan assistance for at least half of the required length of the program, borrowing in excess of $165 per week of study during a semester and/or academic year;
• the program length (for work term students) will be based on the number of academic terms plus any work term semesters which you applied for and deemed eligible for student loans; and
• you graduate, within 10 years from the program start date, from a post-secondary program within the province that is at least 80 weeks in duration.

These grants are calculated on a semester and/or academic year basis; however, benefits are not paid until you graduate. Canada Millennium Bursary/Transition Grant previously awarded/approved are subtracted from total eligible debt reduction grants.

The program promotes the participation of students registering in a full course load, where possible, in an effort to reduce student debt and ensure timely completion. The following example illustrates the advantage of borrowers enrolling in a full course load:

Emily borrowed $4,590 (i.e., $3,570 federal and $1,020 provincial) during the fall 2010 semester, and successfully completed a full course load. Her debt reduction grant for that semester was equal to the full provincial loan of $1,020. If Emily had enrolled in only 80% of a full course load, the maximum grant she could have earned would be only 50% of that amount (i.e., $510).

In certain situations, borrowers may qualify for debt reduction grants if they are enrolled in less than 80% of a full course load. Borrowers approved by the Student Financial Services Division for full-time assistance while enrolled in less than 80% of a full course load and students with permanent disabilities, are two such examples. These students, however, must be successful in all courses attempted during each semester for which a reduced course load is approved. If they meet this criterion they are eligible for the full debt reduction grants.

Borrowers may also be granted eligibility for debt reduction grants if they demonstrate that extenuating circumstances beyond their control have caused them to be unsuccessful in completing 80% of a full course load. In such cases, approval for debt reduction grants will be determined upon review of a written appeal.

Attending Educational Institutions Outside of the Province

Borrowers who attend a designated educational institution outside of the province may also be eligible for debt reduction grants if they are attending for at least one of the following reasons:

• the program was not offered in the province or was substantially different from any program in the province;
• the program was at the graduate level;
• upon application the student was not admitted to the program in the province due to limited enrolment;
• the student did not meet the entrance requirements of the educational institution in the province, but did for the same program in another jurisdiction;
• the student received transfer credits toward, or advanced standing into the program, which significantly reduced the program length; or,
• the student’s spouse was enrolled in a program of study outside the province that would be eligible for debt reduction grants.

Note: Borrowers are required to provide the Student Financial Services Division with appropriate documentation to support their case.

Programs Less Than 80 Weeks In Duration

Borrowers may be eligible to receive debt reduction grants for programs that are less than 80 weeks in duration if the program(s):

• is completed after the student has graduated from a program which is at least 80 weeks in duration and qualified for debt reduction grants; and
• is deemed to advance the student in their particular field of study, and/or significantly enhance the student’s employability.

A separate application is not required; however the Student Financial Services Division requires the following information to determine a student’s eligibility:

• transcript of marks;
• percentage of a full course load the student attempted and completed per semester;
• confirmation of graduation (this can be a copy of the applicable certificate, diploma or degree); and,
• confirmation of the graduation date and the number of weeks of the program.

Note: This information can be submitted by the educational institution using the Debt Reduction Program Monitoring Form which is sent to them. If the educational institution does not provide the information to the Student Financial Services Division, the borrower is encouraged to submit the information directly.

Borrowers must respond to all requests for required documentation from the Student Financial Services Division, regarding debt reduction, within 2 years of graduation.

Borrowers who do not apply for financial assistance during the final period of study prior to graduation should contact the Student Financial Services Division to ensure debt reduction eligibility is determined.

Borrowers may appeal decisions made by the Student Financial Services Division pertaining to debt reduction grants. However, appeals will not be considered prior to the release of a debt reduction notice, or after the deadline date for submitting an appeal, which is within one year following receipt of decision.

All debt reduction grants are subject to audit which could result in overpayments. In such cases, the amount over paid will be added back to the Provincial Student Loan balance.

Note: In cases where the provincial portion of the loan has been paid in full the student will receive the remaining debt reduction funds in the form of a cheque.