Already the province with the lowest average tuition rates, Newfoundland and Labrador is now eliminating in-province student loans, replacing it with non-repayable grant-based funding.
The move to rid provincial student loans was announced Aug. 1 and comes into effect for the 2015-16 academic year.
According to a provincial press release, the maximum amount of provincial funding for a 17-week semester would be eligible for $2,280 in funding. The full amount will now be a non-repayable grant.
Newfoundland and Labrador students applying for federal loans through the Canada Student Loan Program will still have to pay off the loan.
Students attending school outside of the province will either have a maximum weekly loan of $60 and $80 in non-repayable grants, or a $140 grant if the program of study is not offered in the province.
“The premise is based on the fact that students encouraged to pursue post-secondary studies within Newfoundland and Labrador,” according to the press release.
The new measure received praise from the Canadian Federation of Students, telling CBC News other provincial governments should follow suit.
