N.W.T. gov't cuts loan forgiveness incentive for returning students

The N.W.T. government is cutting a student financial aid incentive that gave students up to $2,000 a year off their student loans, to a maximum of $10,000, if they live and work in the territory.

"The removal of [the incentive] was a difficult decision, but a necessary one as part of the GNWT's review of its fiscal capacity," wrote Education Minister Caitlin Cleveland in a news release Wednesday.

The Northern Bonus incentive firstlaunched in 2015 to attract more graduates to the territory. It was applied to student loan debt, for both local and non-local students who live in the N.W.T.A person had to live in the territory for 12 consecutive months without being enrolled in full-time post-secondary studies to qualify for the incentive.

In a statement, the Department of Education, Culture and Employment said the incentive cost the territory about $600,000 a year.

Cleveland said students still have other options for help paying off loans.

"With the significant improvements that have been made to Student Financial Assistance last year, we are confident that N.W.T. students are well-supported in their pursuit of post-secondary education," Cleveland stated.

Kienan Ashton, a Yellowknifercurrently enrolled at the University of Saskatchewan in Saskatoon, said the N.W.T. probably has one of the best student loan programs in the country, but it's still disappointing to see cuts.

"If they need to save money on student loans, then the return incentive seems to me like a bad place to do that because we desperately need people to be coming back," he said.

Recent increases to the territory's student financial aid program are welcome but didn't make up for years of no increases, Ashton added.

"It hasn't really kept up with the cost of tuition. So they did bump it up a little bit last year, but now they're cutting back in other areas," he said.

Ashton said the incentive didn't influence him much either way when it came to seeking out post-secondary.

"Honestly, I don't think it really factored into my decision because, you know, you kind of have to go away," he said. "You certainly cannot get the sort of education I wanted by staying home."

After the government announced the cut, Range Lake MLA Kieron Testart said in a Facebook statement he does not support the decision.

"The N.W.T. needs a strong workforce [and] we need to continue to support students to ensure that happens," Testart wrote.

He added fiscal sustainability "cannot come at the expense of our future and the GNWTshould not be putting itself ahead of the people it serves."