Student loan program streamlined

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This article was published 13/07/2022 (1336 days ago), so information in it may no longer be current.

The Manitoba government is touting an update to student aid operations as a move that will reduce red tape and make both loan management and repayment easier for users.

Amendments to the Student Aid Regulation harmonize its provisions with the requirements of the Canada Student Financial Assistance Program, the province announced Wednesday.

Manitoba’s regulation has been updated to enhance disability provisions for students and eliminate the restriction that limits funding to one diploma, certificate or degree, among other reasons, officials said.

“Integrating the provincial and federal loan programs will help streamline and simplify the administration of student loans, improving services for more than 47,000 borrowers,” Advanced Education Minister Jon Reyes said in a prepared release.

“These changes will make it easier for students to manage their student loans as they access the education and training opportunities needed to build their careers and support Manitoba’s economic growth.”

Reyes said the modernized system will simplify administration, management and repayment for student loans.

The first phase of the changes will ensure new borrowers only have a single payment to manage.

Existing borrowers will have two loans (one provincial and one federal) and two repayments until April 2023, which is when the changes are slated to be fully implemented. At that point, graduates will only have one monthly repayment and will be able to manage it via the national loan service centre, per the province.

The Canadian Federation of Students welcomed the changes Wednesday, but indicated much work is required to improve the province’s student aid program.

“It’s good to see that they are trying to make it more accessible,” said Marie Paule Ehoussou, spokeswoman for the local chapter of the national advocacy organization.

The CFS Manitoba chairwoman said the average local student graduates with roughly $35,000 in debt.

As far as Ehoussou is concerned, the province needs to do more loan forgiveness, dole out more grants than loans, and advocate for all student loans to be interest-free after graduation.

Provincial and federal loans are interest-free during a borrower’s studies. However, Canada Student Loans start to accumulate interest six months after a client stops attending classes on a full-time basis.

maggie.macintosh@freepress.mb.ca

Twitter: @macintoshmaggie