Student groups in Nova Scotia are celebrating after the provincial government announced it was streamlining its zero-percent student loan program, but some say it is just a start.
This past week, the province said it was removing the application requirement for all new graduates to reapply annually and on time or face a penalty.
In a release, the government said the move would reduce paperwork and help prevent interruptions in support, making it easier for borrowers to stay focused on paying down loans.
Students Nova Scotia executive director Brendan Roberts called the change “a positive step towards ensuring that graduates feel supported as they begin repaying their student loans.”
That sentiment is echoed by St. Francis Xavier University’s student union president who says the decision to eliminate the yearly requirement is welcomed by graduates.
“(Previously) you would have to reapply continuously for these loans to be kept zero interest,” Jacob Cruchet said. “What that means is that is was often slow and it was a little bit more administratively complex, which is probably one of the reasons the government has seen this as something that is in their interest in cutting.”
Cruchet said the move will give students some relief, however there are further steps the province needs to take amid the growing cost of living crisis, such as increase loan amounts for students.
“Right now the weekly maximums, so how much you’re able to receive as a student, I believe is at $200,” he said. “And that’s the same number that we’ve had for over a decade now.”
Cruchet said even topping that weekly amount by $100 would be a dramatic improvement for students trying to make ends meet as grocery, gasoline and other bills skyrocket.
According to Roberts, the province also needs to increase the maximum hours a student can put in on a part-time job while studying in order to make life more affordable for students.
“The maximum amount a student can earn per week is $100 while they’re studying,” Roberts said. “At minimum wage that’s about six hours of work per week. If a student earns more than $100 per week while they’re in school, the province can technically deduct from the amount of student loans and grants that they’re given.”
He added that students aren’t given enough financial supports to fund their studies and the rule further penalizes them just for trying to cover outstanding expenses themselves.
Cruchet said that if the province truly sees value in its post-secondary students and wants to ensure they are supported, it will take more action to make life affordable.
“It’s historically a very worthwhile investment for the province,” he said. “You’re going to get your return on investment [and] it is making it a lot easier for students to enter that pipeline.”