About HRSDC | Our Offices | Programs & Services | A-Z Index April 28, 2005 FOR IMMEDIATE RELEASE Fredericton, New Brunswick - Effective May 1, 2005. New Brunswick post-secondary students applying for student financial assistance will now have one loan and one repayment. The Honourable Andy Scott, Minister of Indian Affairs and Northern Development and Federal Interlocutor for Métis and Non-Status Indians and Member of Parliament for Fredericton, on behalf of the Honourable Lucienne Robillard, President of the Queen's Privy Council for Canada, Minister of Intergovernmental Affairs, and Minister of Human Resources and Skills Development and New Brunswick Minister of Education Madeline Dubé today officially announced the Canada - New Brunswick Administrative Integration Agreement for the disbursement and repayment of student financial assistance. "The Government of Canada has enjoyed an excellent working relationship with the Government of New Brunswick," said Minister Scott. "This new Agreement builds upon the partnerships we have already forged, and we look forward to a long, mutually beneficial relationship in the administration of financial aid for students." "This agreement is an important part of "Quality Post-Secondary Opportunities" the post-secondary education and training Quality Learning Agenda," said Dubé. "It will make post-secondary education and training more accessible as well as simplify the loan process of student borrowers." Among the positive changes for students that will occur as a result of the Administrative Integration Agreement include: More streamlined administration system designed around the concept of one student-one loan; Only one point of contact to manage both federal and provincial loans; Only one payment required for both federal and provincial loans; Less documentation to complete, as many forms and applications are also integrated; Ability to obtain debt management benefits on multiple loan products using only one application process. Letters have been mailed to individuals with provincial and federal student loans, including those currently attending post-secondary education and those in repayment, outlining how this new agreement will affect the administration of their own student loan. For more information regarding the Integration Agreement, student borrowers may visit the Department of Education web site at www.studentaid.gnb.ca or call New Brunswick Student Financial Services toll-free at 1 800 667-5626, in Fredericton at (506) 453-2577, and in Saint John at (506) 646-7350. See backgrounder for more information. - 30 - Media contacts: Media Relations Office Human Resources and Skills Development Canada (819) 994-5559 Jason Humphrey or Hugues Beaulieu Department of Education Province of New Brunswick Tel: (506) 444-4714 CANADA-NEW BRUNSWICK AGREEMENT FOR THE ADMINISTRATIVE INTEGRATION OF STUDENT FINANCIAL ASSISTANCE PROGRAMS Media Backgrounder The Government of Canada and the Government of New Brunswick have entered into an agreement for the administrative integration of their student financial assistance programs. The Agreement commits to integrating activities related to the disbursement and repayment of both federal and provincial student loans in New Brunswick. It will be implemented on May 1, 2005. In August 2000, the federal government moved to direct lending to fund the Canada Student Loans Program. Through this direct lending regime, the federal government, rather than financial institutions, became responsible for lending money to student borrowers. A National Student Loans Service Centre (NSLSC) was established to administer these loans. The NSLSC is comprised of two service providers under contract with the federal government. A provision under these contracts enables individual provinces and territories to integrate the administration of their student loans with federal student loans. The Canadian Imperial Bank of Commerce currently disburses funds and manages student borrower accounts in New Brunswick. Late in 2003, New Brunswick began exploring other possibilities to administer its program and decided to engage in direct lending via an administrative integration agreement with the Canada Student Loans Program. Integrating provides numerous improvements to student borrower service, including: More streamlined administration system designed around the concept of one student-one loan; Only one point of contact to manage both federal and provincial loans; Only one payment required for both federal and provincial loans; Less documentation to complete, as many forms and applications are also integrated; Ability to obtain debt management benefits on multiple loan products using only one application process. Various communications tools will be used to advise New Brunswick borrowers affected by this change. A joint letter from the federal and provincial governments will be sent to borrowers and formal notification of the change will be provided by the NSLSC's service providers More details on the administrative integration agreement are available at: New Brunswick Student Financial Services toll-free at 1 800 667-5626, in Fredericton at (506) 453-2577, and in Saint John at (506) 646-7350 Web site link with www.studentaid.gnb.ca For more information on federal student financial assistance programs offered under the Canada Student Loans Program, visit www.canlearn.ca or call 1 800 O-Canada.
