News Release Archive
EDUCATION/CULTURE--NEW STUDENT LOANS NEGOTIATED WITH ROYAL BANK
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All students will now deal with Royal Bank when they borrow money
through the Nova Scotia Student Loan Program.
The program's other lender, the Canadian Imperial Bank of
Commerce (CIBC), has just notified the Department of Education
and Culture it will not renew its contract, effective June 30.
CIBC entered the Nova Scotia Student Loan Program in 1993 and was
the sole lender until Royal Bank joined in 1996.
Education and Culture Minister Robbie Harrison stressed students
are fully protected, with ready access to student loans as
before.
"Royal Bank has a long history of serving young people in
communities right across the province, and Royal Bank has said
that commitment to quality service will continue."
Mr. Harrison said, "As one example, we're working with Royal Bank
on ways that students can do paperwork - in advance - right in
their home branch. This will save time when they return to school
in the fall. We've also asked the Students' Union of Nova Scotia
(SUNS) to help us ensure students get the information they need
when they need it."
Many students will be unaffected by the change. More than 40 per
cent of students already have their student loans with Royal
Bank, so for them, it is business as usual. Those with previous
student loans at CIBC who are not receiving new loans after June
30 will keep their loans at CIBC.
Only students borrowing new money are affected. Those students
with existing CIBC loans who are borrowing again after June 30
will need to transfer their loans to Royal Bank. The department
will notify each student immediately with all the information
they need.
Mr. Harrison also announced an immediate change to the loan
program that will benefit students and the Royal Bank. "We will
immediately harmonize the federal and provincial interest relief
program, the minister said. "This will help students who need
more time to get on their feet before they have to begin repaying
their loan. It also means one form and less paperwork with which
students and banks have to deal."
Currently under the Interest Relief Program, the department pays
full interest on a student's loan, based on earnings, for up to
24 months. As a result of this change, interest relief will be
extended to 30 months for students who borrow money after June
30. Students are also able to make more money while remaining
eligible for interest relief.
The department will also continue to step up efforts to ensure
all eligible students apply for the Nova Scotia Loan Remission
Program, a program where students in greatest need and who are
academically successful have a portion of their loan forgiven.
Currently, only approximately 50 per cent of eligible students
apply.
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Contact: Donna MacDonald
Department of Education
902-424-2615 or 902-499-0264
trp June 4, 1997 - 6:10 p.m.
