Newfoundland
      harmonizes
      student
      loans
     
    
   
   
    
     
      Banks
      back
      out
      of
      the
      student
      loan
      business
     
    
   
   
    
     
      ST.
      JOHN’S
      (CUP)
      —
      One
      loan,
      one
      stu-
     
     
      dent.
      It
      sounds
      like
      a
      simple
      concept,
      yet
      the
      idea
      of
     
     
      harmonizing
      the
      federal
      and
      provincial
      student
      loan
     
     
      programs
      just
      arrived
      in
      Newfoundland
      and
     
     
      Labrador.
     
    

    
     
      Provincial
      Minister
      of
      Education
      John
     
     
      Ottenheimer
      announced
      last
      week
      that
      the
      change
     
     
      will
      happen
      on
      April
      1,
      2004.
      This
      is
      the
      same
      day
      the
     
     
      provincial
      government
      will
      officially
      buy
      the
     
     
      province’s
      $220-million
      student
      loan
      debt
      from
     
     
      CIBC,
      the
      bank
      that
      currently
      holds
      the
      loans.
     
    

    
     
      In
      the
      past,
      students
      had
      to
      visit
      four
      or
      five
     
     
      different
      places
      to
      get
      information
      for
      their
      loans,
      and
     
     
      even
      then,
      some
      students
      didn’t
      receive
      their
      pay-
     
     
      ments
      until
      the
      end
      of
      the
      semester,
      long
      after
      tuition
     
     
      was
      due.
     
    

    
     
      “Tt
      is
      a
      nightmare
      fot
      students
      to
      try
      to
      navi-
     
     
      gate
      the
      system,”
      said
      Keith
      Dunne,
      chairperson
      of
     
     
      the
      Newfoundland
      and
      Labrador
      chapter
      of
      the
     
     
      Canadian
      Federation
      of
      Students.
      .
     
    

    
     
      Most
      of
      the
      problems
      students
      encounter
      are
     
     
      due
      to
      administrative
      issues
      that
      may
      soon
      be
      fixed.
     
     
      Under
      the
      new
      system,
      students
      will
      fill
      out
      the
      same
     
     
      application
      as
      before,
      but
      receive
      one
      lump
      sum
      pay-
     
     
      ment
      for
      both
      loans
      from
      the
      Student
      Loan
     
     
      Corporation
      of
      Newfoundland
      and
      Labrador
     
     
      (SLCNL).
      When
      changes
      need
      to
      be
      made
      in
      a
      stu-
     
     
      dent’s
      status,
      or
      the
      loan
      is
      due
      for
      repayment,
      only
     
     
      the
      SLCNL
      needs
      to
      be
      contacted,
      and
      one
      repayment
     
     
      is
      made.
     
    

    
     
      Dunne
      hailed
      the
      new
      integrated
      system
      as
     
     
      an
      important
      improvement
      for
      the
      student
      loan
      sys-
     
     
      tem.
     
    

    
     
      “There’s
      a
      number
      of
      perks
      to
      this
      system,
     
     
      and
      certainly,
      we
      applaud
      the
      government
      for
      making
     
    
   
   
    
     
      this
      step.
      But
      again,
      we’re
      going
      to
      be
      there
      every
     
    
   
   
    
     
      step
      of
      the
      way
      to
      make
      sure
      Heng:
      are
      being
      done
     
     
      properly,”
      he
      said.
     
    

    
     
      Memorial
      University
      VP
      Academic
      Jessica
     
     
      Magalios
      is
      unsure
      of
      how
      much
      of
      a
      difference
      stu-
     
     
      dents
      will
      notice.
      “It
      seems
      like
      it
      should
      result
      in
      a
     
     
      lot
      less
      headaches
      for
      students,
      so
      I
      think
      students
     
     
      will
      overall
      be
      happy.
      But
      it’s
      still.a
      loan,
      so
      I
      don’t
     
     
      know
      how
      happy
      students
      will
      be.”
     
    

    
     
      -
      Students
      holding
      or
      paying
      back
      student
     
     
      loans
      from
      after
      1998,
      and
      new
      students
      applying
      for
     
     
      _loans,
      will
      be
      brought
      into
      the
      new
      loan
      servicing
     
     
      arrangement.
      The
      new
      combined
      agency
      will
      deal
     
     
      with
      approximately
      30,000
      student
      borrowers,
      some
     
     
      who
      are.
      in
      repayment,
      and
      others
      still
      studying.
     
    

    
     
      Although
      started
      under
      the
      Liberal
      govern-
     
     
      ment
      last
      year,
      Ottenheimer
      presented
      the
      agreement
     
     
      as
      proof
      of
      the
      government’s
      commitment
      to
      equal
     
     
      opportunity
      post-secondary
      education,
      and
      offering
      a
     
     
      “more
      streamlined
      and
      much
      simpler
      loan
      process.”
     
    
   
   
    
     
      _
      apply
      for
      loans,
      the
      procedure
      is
      much
      sim-
     
    
   
   
    
     
      “We
      may
      see
      other
      provinces
      following
      suit,”
     
     
      said
      Ottenheimer.
     
    

    
     
      The
      new
      government-run
      system
      will
      be
     
     
      more
      cost-effective
      than
      the
      current
      contract
      with
     
     
      CIBC,
      and
      will
      save
      the
      provincial
      government
      sev-
     
     
      eral
      millions
      over
      the
      next
      two
      fiscal
      years,
      according
     
     
      to
      Ottenheimer.
     
    

    
     
      However,
      the
      government
      will
      still
      lose
     
     
      about
      $20-million
      a
      year
      in
      difference
      between
      the
     
     
      defaulted
      student
      loans
      and
      the
      interest
      earned
      on
     
     
      loans.
      Ottenheimer
      broached
      the
      subject
      of
      collection
     
     
      carefully,
      saying
      his
      department
      is
      attempting
      to
      find
     
     
      a
      consumer
      friendly
      approach
      to
      defaulted
      loans
      that
     
     
      is
      reasonable
      and
      humane.
     
    

    
     
      As
      of
      yet,
      the
      issue
      of
      collection
     
     
      hasn’t
      been
      finalized;
      it
      may
      or
      may
      not
      be
     
     
      contracted
      by
      the
      government
      to
      an
      outside
     
     
      agency.
     
    

    
     
      Ottenheimer
      also
      indicated
      that
      the
     
     
      savings
      in
      administration
      might
      go
      back
     
     
      into
      the
      program
      for
      students,
      a
      prospect
     
     
      which
      excited
      Keith
      Dunne.
      :
     
    

    
     
      “There
      are
      a
      number
      of
      ways
      to
      put)
      S
     
     
      it
      directly
      back
      into
      the
      post-secondary)
      ~
     
     
      institutions
      whether
      that
      be
      through
      core}
      ™
     
     
      funding,
      or
      reducing
      tuition
      fees,
      or
      special]
     
     
      grants
      for
      disadvantaged
      students,”
      said}
     
     
      Dunne.
     
    

    
     
      However,
      no
      changes
      will
      be
      in
     
     
      tially
      made
      to
      the
      actual
      student
      loan
      poli-
     
     
      cies,
      leaving
      students
      to
      satisfy
      very
      differ-
     
     
      ent
      loan
      criteria
      to
      qualify
      for
      both
      loans.
     
     
      Under
      the
      new
      agreement,
      the
      province
      will
     
     
      continue
      to
      set
      loan
      policies
      itself,
      but
      there
     
     
      is
      the
      possibility
      of
      being
      able
      to
      lobby
      the
     
     
      government
      to
      synchronize
      the
      loan
      criteria.
     
    

    
     
      Chairperson
      Joel
      Duff
      of
      the
      CFS
     
     
      in
      Ontario
      has
      found
      that
      with
      the
      integrat-
     
     
      ed
      system
      in
      his
      province
      they
      were
      able
      to
     
     
      convince
      the
      governments
      to
      make
      the
     
     
      application
      criteria
      the
      same
      for
      both
      loans
     
     
      over
      a
      period
      of
      three
      years.
     
    

    
     
      Now
      Duff
      says
      when
      students
     
    
   
   
    
     
      pler
      and
      quicker,
      as
      officials
      only
      have
      to
     
     
      check
      the
      one
      set
      of
      criteria.
      Also,
      when
      the
     
     
      changes
      were
      made
      to
      the
      loan
      criteria,
      it
     
     
      was
      usually
      to
      the
      advantage
      of
      students,
     
     
      meaning
      longer
      grace
      periods
      for
      repay-
     
     
      ment
      and
      lower
      parental
      contributions.
     
    

    
     
      _
      “That
      was
      a
      lot
      of
      hard
      work.
      It
     
     
      meant
      that
      students
      had
      to
      be
      constantly
      at
     
     
      the
      table
      arguing
      our
      case
      and
      on
      just
      about
     
     
      every
      point
      we
      managed
      to
      bring
      in
      the
      bet-
     
     
      ter
      of
      the
      two
      policies.
      In
      that
      sense,
      it’s
     
    
   
   
    
     
      UPEI
      Cadre
      March
      9,
      2004
      page
      23
     
    
   
   
    
     
       
     
    
   
   
    
     
      said
     
    
   
   
    
     
      been
      a
      good
      thing
      to
      bring
      in
      harmonization,”
     
     
      Duff.
     
    

    
     
      Provincial
      NDP
      leader
      Jack
      Harris
      is
      wary
     
     
      about
      the
      new
      integrated
      loan
      agency
      being
      a
      private-
     
     
      ly
      contracted
      federal
      company
      in
      Ontario.
      He
      said
      it
     
     
      remains
      to
      be
      seen
      if
      they
      deal
      with
      student’s
      prob-
     
     
      lems
      effectively,
      but
      it
      should
      be
      a
      modest
      improve-
     
     
      ment.
     
    

    
     
      “T
      think
      the
      integration
      is
      going
      to
      take
      a
      lot
     
     
      of
      headaches
      away
      from
      students
      in
      the
      sense
      that
     
     
      they’re
      going
      to
      deal
      with
      one
      agency,
      particularly
     
     
      when
      it
      comes
      to
      dealing
      with
      problems,”
      said
      Harris.
     
    
   
   
    
     
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      University
      Press
      www.cup.ca