Many grade twelve students across Alberta are about to breathe a sigh of relief. Two weeks ago, Minister of Advanced Education Greg Weadick announced a complete overhaul of the process to get student loans in Alberta. The new process involves a simpler system designed to improve the user-friendliness of the applications. Overall, the goal of the province, according to Weadnick, is that “We want to make sure finances are never a barrier to students’ education”.
The current student loan application considers many factors in making decisions regarding student loans. Information about a student’s earnings, savings, and RRSPs all affect a student’s eligibility. For some students, this adds unnecessary hassle and complexity, something that Weadick wishes to change. To solve this problem, a Flat Rate Student Contribution policy will be introduced. Rather than going through a lengthy assessment, the Flat Rate Student Contribution allows students to put up a constant sum of $1,500 when applying for the loan. Forced parental contributions will also be rendered obsolete. As well, restrictions for international students will be removed.
In addition to simplifying the system, the new program will also provide financial benefits to students. When students complete their university education, they are given a six-month grace period during which they are not required to pay off the loan, however interest is still accumulated over this time. The new loan arrangement will abolish this interest, allowing students to enjoy their grace period with no strings attached. Loan remissions will also change. Instead of the Government of Alberta paying off a certain amount of students' loans, a completion grants program will be established. Upon completion of a certificate, diploma, applied bachelor or bachelor degree program, students will receive anywhere between $1,000 and $2,000 in grants. Retention grants will also be given to graduates who choose to work in Alberta for three years or longer in occupations that the province deems “essential”.
All of these changes will be implemented in order to make the loan process more predictable and transparent. The hope is that more students will be interested in staying in Alberta for their studies. For those high school seniors who want to stay close to home, this announcement is sure to relieve some of the stress involved with university.
Sources:
- Donelly, Greg. "Alberta government simplifies student loan application process." Global News Edmonton. 13 Feb. 2012.
- "Major changes coming to Alberta’s student aid plan." MacEwan News. 13 Feb. 2012.
