Loan interest eliminated

ST. JOHN'S - The province is spending $5 million to eliminate the interest on Newfoundland and Labrador student loans and raise personal grants from $70 to $80. Finance Minister Jerome Kennedy said the move is expected to help 49,000 students who use provincial loans and 8400 students who receive grants - making the system "the best student aid package in the country," according to Kennedy. Federal students loans are not affected by the new policy.

The break applies to all existing student loans, no matter how far they date back. Now, payments will be on the principal of the loan only.

"With this economic downturn, we weren't sure if we were going to get it," said Daniel Smith, chairman of the Newfoundland and Labrador Federation of Students.

"It's a very progressive move. It sets a precedent for the rest of the country to keep up with our post secondary system."

Meanwhile, the tuition freeze at Memorial University and the College of the North Atlantic (CNA) will continue. So too, will the province's commitment to make Corner Brook's Sir Wilfred Grenfell College autonomous from Memorial University in St. John's.

Grenfell will build a new academic building for its campus using part of a $34 million infrastructure fund.

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"All those things that have been committed in the past are being funded and continued investment in Grenfell and moving the hospital forward were the key things we were looking for," Pender told The Western Star following the budget speech. "As they have done with other programs, they have put so much money into pre-planning, then the actual planning, site selection and so on. So, those things are all moving forward."

There was spending announced for various province-wide government programs to be rolled out, but it will take some time to decipher how much will be allocated to the western region.

"We've already negotiated our multi-year capital works program and we are already talking about other projects with them and the federal government," said Pender. "We'll go through the documents to see how much other program funding will be coming to our area."

An entire component of the budget focused on helping central Newfoundland, in light of the closure of the paper mill in Grand Falls-Windsor. While he agreed that is the right thing to do, Pender said some of the money announced for the troubled forestry industry could wind up in western Newfoundland.

"The mill in Corner Brook is going through a slowdown now too and we're sensitive to what can happen when a major industry shuts down," said the mayor. "We've had a couple of good years in Corner Brook and there is more to come, but we have to share the wealth."

gkean@thewesternstar.com