Each year, thousands of B.C. students enrol in classes at post-secondary institutions all over the province with programs ranging from trades and technology training to bio-medical engineering and research. To help pay for their education, many will choose to access some form of financial assistance: scholarships, bursaries, help from family or parents, or a government-sponsored student loan.

In addition to paying the interest on students' loans until they've finished school, taxpayers also help through the Province's loan-reduction and loan-forgiveness programs. These two programs are designed to help students who finish their studies - by reducing or forgiving their loans - and making it easier for graduates to get out of debt faster.

The loan reduction program offers a financial incentive for students to complete their studies, with reductions automatically applied to their loans. Last year, approximately 21,000 B.C. students were able to benefit from $38.5 million in loan reductions.

This was the case for a student who finished a two-year program at the University of British Columbia. She benefited from nearly $6,000 in loan reduction to her B.C. student loan, leaving her with just over $3,000 owing.

These benefits multiply when students choose in-demand, skilled professions - such as nurse, nurse practitioner, midwife or occupational therapist - and agree to work in under-served communities for up to three years. In this situation, B.C.'s loan forgiveness program will forgive 33 per cent of their student loans each year they work in the community.

Recently, the loan forgiveness program helped out a single mom with two children. She graduated from Thompson Rivers University with a degree in nursing and a B.C. student loan of nearly $48,000. With help from the Loan Reduction program, her loan was reduced to $45,000, but because she was working as a registered nurse in a community that needed more nurses, her loan was reduced to $0 over three years.

More than 300 B.C. students received $2 million through the BC Loan Forgiveness program last year.

Why It Matters:

Every year, the Province distributes about $230 million in B.C. student loans to thousands of post-secondary students all over British Columbia, helping them to achieve their educational goals and setting them on the road to career success.

By providing incentives like loan forgiveness and loan reduction programs, the Province is assisting students to get out of debt more quickly so they can focus on building their careers, taking care of their families and supporting their communities.

Quotes:

Naomi Yamamoto, Minister of Advanced Education -

"The loan forgiveness and loan reduction programs are just two examples of the ways in which the Province is helping students get an education, build their skills, and secure good jobs to support their families."

"We are committed to making education affordable and accessible for students, and are proud of the investment by taxpayers that makes it possible to offer comprehensive financial assistance programs that help thousands of students every year."

Quick Facts:

• Qualified students in B.C. have access to more than $730 million in federal and provincial student financial assistance to cover tuition, fees, books and living costs.
• B.C. student loans remain interest-free while students are attending classes.

Learn More:

StudentAid BC: http://www.aved.gov.bc.ca/studentaidbc/

Media Contact:

Joanne Whittier
Communications Manager
Ministry of Advanced Education
250 952-6400