Atlantic & East Coast Report

Will Newfoundland and Labrador Look to Other Provinces for Direction on Retaining University Grads?

By Myles Higgins

Friday, November 17, 2006

There is a movement underway in Newfoundland and Labrador intended to convince the provincial government to waive interest charges on student loans. The initiative, led by local university graduate and social activist, Travis Parsons, is attempting to convince government that one of the reasons so many young people are continuing to leaving the province is their crippling student debt and an inability to attain salary levels in the province that would allow them to meet their loan obligations.

Retaining university graduates by easing the financial burdens is not a new concept, however it's one that is just beginning to be recognized in parts of the country. Earlier this year, the province of New Brunswick instituted a process that allows graduates to receive rebates of up to 50 per cent of their tuition costs, to a maximum of $10,000. The rebates are issued over a period of several years, to a maximum of $2,000 a year. Manitoba is also considering similar legislation in an effort to curb a growing problem with out-migration.

At this point the province of Newfoundland and Labrador has not publicly said it will support a debt reduction plan, however Parsons and others believe that if any province should be concerned with out-migration it's Newfoundland and Labrador. Recent reports have shown that the provinces' population is falling, thousands of people a year are leaving for other locales, the skills base in the province is slipping and a large percentage of the population will soon be reaching retirement age or has already done so. All of which makes it extremely difficult to attract industry and grow the economy, two planks in the Tory government's platform.

Convincing young people to remain in Newfoundland and Labrador is an issue that is growing more and more important with each passing year. These people are the future of any province, however retaining them can be difficult when salaries, on average, are lower than those available in places like Alberta. One option to resolving this situation may be to ease the burden of student loan interest or to rebate tuition itself, in exchange for the graduated remaining in the province for a set period of time. Many graduates leave the province soon after graduation. It is believed that if those students could be convinced to begin their careers inside the province they would be more likely to remain for the longer term.

Reports suggest that under a pledge by Prime Minister Stephen Harper's Conservative government, Manitoba, which is now considering student debt relief, could be in line for a major funding boost to help cover the cost of its initiative. If this is the case, one wonders if Newfoundland and Labrador might also be able to leverage federal funding for a similar scheme. According to the latest census, Manitoba lost 8,635 people between July 1, 2005 and July 1, 2006.

Newfoundland and Labrador also lost thousands of people to out-migration during the same period, however while Manitoba's population continues to grow, thanks mainly to increased immigration, Newfoundland and Labrador's is falling steadily. Regardless of whether or not the federal government is willing to support such an initiative in the province, many feel that if something isn't done soon, the problem will continue to worsen.