Thursday, April 3, 2014 

For Immediate Release 

 

 

 

HALIFAX- Dalhousie students are giving mixed reactions to today's provincial budget. The most significant impact that the budget will have on students is eliminating the Graduate Retention Tax Rebate. In addition, the budget will eliminate interest rates on provincial student loans, increase university operating grants by one percentage point, provide funding for new graduate student scholarships, and create a Graduate to Opportunities program. In total the budget will make cuts worth $49 million and new spending worth $9.9 million, for a difference of -$39.1 million 

 

“Every student union in the province was hoping to see the funds from the Graduate Retention Rebate used for needs-based grants, which could have made a real impact on student debt and accessibility,” says Sagar Jha, President of the Dalhousie Student Union (DSU). “Instead, we're seeing the money given to businesses. The funds from the graduate tax rebate were enough to convert one hundred percent of Nova Scotia's student loans into grants. The government has missed a significant opportunity.” 

 

The graduate retention tax rebate cut, valued at $49 million, is the most significant change in the budget. The cost of the government's move to eliminate student loan interest is estimated at $1.6 million. Eliminating interest on student loans is estimated by the government to save students $800 over the course of their loan, or roughly $80 per year. Tuition fees have risen by 3% per year for the last three, and will do so again this year. Dalhousie students currently pay roughly $6,588 per year, and the 3% tuition increase will roughly cost an additional $198 dollars next year. 

 

“Eliminating interest is a positive step for students, and will save students some money,” says aaron Beale, vice president academic and external of the DSU. “We worry, however, that the savings will be eroded very quickly by tuition increases. The principal, not the interest, is the reason student debt is so high. The government must reduce tuition fees in order for this policy to have its desired impact.” 

 

The budget increases the university operating grant by one percentage point, a welcome change from years of cuts under the previous government. However, the increase is not enough to even cover inflationary costs and universities will have to rely on other means, such as new fees and cuts to academics in order to balance their budgets. 

 

“The Liberals earned the support of Nova Scotians last October by promising to support education, end business handouts, and declaring that 'education isn't a line item in a budget, it's our future',” says Jha. “This budget takes the important step of eliminating interest but we are not seeing the appropriate actions on grants, tuition fees and university funding. We call on the government to listen to students and work with us to better meet our needs.”