Newfoundland Student Loans Replaced by Grants – What You Need to Know

 

Newfoundland & Labrador has recently made important changes to its student financial assistance (SFA) programs. Starting August 1, 2025, the provincial government greatly enhanced grant eligibility and expanded programs to reduce or convert student loans into non-repayable grants under certain conditions. If you're a current or future student in NL, this affects you. Here’s a breakdown of what’s new, who qualifies, and what you should do to take full advantage.

What’s Changing

Several key updates have been made to how student financial aid works in Newfoundland & Labrador:

1. Loan and Grant Weekly Limits Increased
   For full-time students, the maximum weekly provincial Student Loan portion and the matching provincial grant portion have both increased to $120 per week (from $100). Government of Newfoundland and Labrador For medical students at Memorial University and for out-of-province students, corresponding increases apply. Government of Newfoundland and Labrador
2. NL Debt Reduction Grant Program Expansion
   Previously, only programs of 80 weeks or longer were eligible. As of August 1, 2025, eligibility has been expanded to include programs that are 60 weeks or longer for new entrants. Government of Newfoundland and Labrador+1 This means more students in diploma or certificate programs (that meet the threshold) can qualify for debt reduction.

Under this program, qualifying graduates may have a portion—or in some cases the full amount—of their provincial student loan converted into a non-repayable grant. Government of Newfoundland and Labrador+1

3. Tuition Relief Grant Enhancement
   The per-course value of the Tuition Relief Grant at Memorial University was increased from $345 per course to $420 per course. Government of Newfoundland and Labrador This helps offset rising tuition costs, especially for low- and middle-income families.
4. Provincial Student Aid Program Enhancements
   More generous assistance is being offered overall. The combined value of loan + grant aid per week has risen; and in certain cases, the provincial loan portion may be forgiven entirely for students who meet the debt reduction/grant eligibility criteria. Also, the assistance is interest-free and more accessible. Government of Newfoundland and Labrador+2Government of Newfoundland and Labrador+2

Who Qualifies

If you’re a student in NL, here are the key criteria to see if you may benefit:

• You must be enrolled in a post-secondary program in Newfoundland & Labrador, in an eligible program of at least 60 weeks (if you enter after Aug 1, 2025) or 80 weeks (older programs). Government of Newfoundland and Labrador+1
• You need to borrow more than $165 per week of study (for the debt reduction program). Government of Newfoundland and Labrador+1
• You must complete (and pass) a certain percentage of full course load (usually 80%) each study period to qualify for full or partial grant conversion. Government of Newfoundland and Labrador
• Graduation must happen within 10 years of the program start date, and you must notify StudentAidNL when you graduate (within two years). Government of Newfoundland and Labrador+1

There are also grants for certain fields (e.g. Early Childhood Education) with additional requirements, including work in the field for a period after graduation. Government of Newfoundland and Labrador+1

What Actually Gets Replaced / Forgiven

The term “replaced” can be confusing—here is what it means in practice:

• The provincial loan portion that a student would have had to repay in certain study periods can be converted into a grant (non-repayable) under the Debt Reduction Grant Program. Government of Newfoundland and Labrador+1
• In addition, there are enhanced grant amounts (for tuition relief, etc.) so that students may need less in loan funding in the first place. Government of Newfoundland and Labrador+1
• The conversion is not automatic in all cases: you need to meet course load, program duration, and graduation timing requirements. Also, you must notify StudentAidNL when you graduate. Government of Newfoundland and Labrador

Things Students Should Do to Benefit

Here are steps you should take to make sure you don’t miss out:

1. Check if your program is eligible
   If you start a program August 1, 2025 or later, ensure it is at least 60 weeks long, or 80 weeks if your program started earlier.
2. Borrow enough weekly
   To be considered for debt conversion, you must borrow more than $165/week of study.
3. Keep good grades / pass required % of your course load
   Maintain at least 80% of a full course load (or meet any alternate threshold) each study period.
4. Graduate within 10 years and notify StudentAidNL
   You need to complete your program within ten years of starting, and once you graduate, inform StudentAidNL within two years to trigger the debt reduction grant.
5. Apply early for Student Aid / Grants
   Use the StudentAidNL portal; applying early ensures you are assessed for both loan + grant assistance. Government of Newfoundland and Labrador+1
6. Track your financial aid package
   Understand how much is grant vs loan in your aid and keep good records. That way, you know what portion may be converted.

What It Doesn’t Mean

Important to understand what this doesn’t do (yet):

• It doesn’t mean all student loans are gone or fully forgiven for everyone. Only eligible provincial loans under certain programs may be converted. Federal loans are not directly replaced under these rules.
• Not every program qualifies—shorter programs or those not meeting the minimum length may not be eligible.
• If you don’t meet standards (e.g., course load or graduation timing), you may not get full or any conversion.

Why This Matters

These changes are significant because:

• They reduce the debt burden on graduates in NL, especially for those who previously had to repay large provincial loans.
• They make post-secondary education more accessible and affordable for low- and middle-income students.
• The enhancements recognize rising costs (tuition increases, living costs) and the need for stronger financial assistance.

Final Thoughts

If you're a student in Newfoundland and Labrador, these new changes to StudentAidNL mean there are much better opportunities for your provincial student loan to be partially or fully forgiven (converted into grants), provided you meet the criteria. The key is to understand your eligibility, keep up your academic burden, and follow through with the requirements (especially graduation notification).