May 31, 2001
Advanced Education Minister Diane McGifford today announced the creation of a government managed Student Loan Service Bureau to deliver Manitoba student loans as of Aug. 1.
"As financial institutions prepare to exit from government sponsored student loans, we thoroughly examined delivery options," said McGifford. "A provincially run operation will provide seamless service delivery and is the most cost effective option at this time."
The federal and Manitoba governments entered into agreements with financial institutions in 1995 for financing student loans. Under the agreements, the institutions assumed the risk of default in exchange for a five per cent premium on all student loans. Manitoba’s agreement expires July 31. As a result, Canada and Manitoba have pursued alternative arrangements for providing student financial assistance.
The minister said the province remains committed to working with the federal government during this time of transition.
The province will finance all provincial loans. Loan administration will be facilitated through banking software provided by Credit Union Central of Manitoba.
The new bureau will cost $5.7 million over the next five years and will employ 24 staff. The minister said the bureau will provide a unique opportunity to implement a cost effective approach for Manitoba student loans.
The creation of the bureau will have no impact on how students apply for student aid funding. As in the past, the Manitoba Student Aid Program will continue to assess eligibility for both Canada and Manitoba loans through a single application and will issue certificates of eligibility to students.
The new Manitoba Student Loans Service Bureau will be the single contact for all student loan transactions including loan receipt and repayment in the province. Students with Canada student loans will work then with a service provider under contract with the federal government to receive and repay their Canada student loans.
Students interested in applying for financial assistance are requested to contact the student aid office in Winnipeg at 409-1181 Portage Ave. or in Brandon at 400-1011 Rosser Ave. Applications are also available at Manitoba post-secondary institutions, high schools and Employment Insurance offices. Also, for the first time, students can apply for assistance on the worldwide Web at www.studentaid.gov.mb.ca.
"Our government is committed to enhancing accessibility to educational opportunities for Manitobans," said McGifford. "Recent announcements on post-secondary capital funding, including increased course availability and the new Student Aid Act, build on this commitment and make Manitoba a leader in education. Today’s announcement is yet another ingredient to the formula for creating an economically and socially vibrant Manitoba."
The Royal Bank will continue to finance and administer Manitoba student loans until July 31 at which time the provincial government will begin directly funding and managing provincial student loans.
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Manitoba Student Loan Service Bureau (MSLSB)
Questions and Answers
Are there changes to how students apply for a Canada and Manitoba Student Loan?
No. Students will continue to apply to Manitoba Student Aid for both Canada Student Loan Program and Manitoba Student Aid Program (MSAP) funding. A single application is used to assess eligibility for these funds. MSAP will continue to perform the needs assessment, issue notification of award letters and issue loan authorization forms.
Will students receive a single loan authorization form?
No, there is no change from the current process. Students will continue to receive separate loan authorization forms for their Canada Student Loan and Manitoba Student Loan funds.
How do students receive their loan funds?
MSAP will issue both Canada Student Loan and Manitoba Student Loan authorizations.
For Manitoba Student Loans, students return their duly completed loan authorization forms directly to MSLSB. MSLSB electronically transfers funds into the student’s bank account.
Students receiving a Canada Student Loan must take their Canada Student Loan authorization form to a designated Canada Post outlet. Canada Post will then forward the document to Edulinx Canada Corporation if the student is attending a public institution or to BDP Business Data Service Ltd. if the student is attending a private institution. Funds are electronically issued by the federal government through the service providers.
Where do students repay their loans?
Students repay their Canada Student Loan directly to the federal government through their service provider. Students repay Manitoba Student Loan debt directly to the MSLSB.
Can students deal directly with one of Manitoba’s Credit Unions to receive or repay their student loan?
No. Students must repay their loans directly to the MSLSB. The province is using the banking software program developed by Credit Union Central of Manitoba to enable loan administration only.
When do the Manitoba Student Loan changes come into effect?
The province’s agreement with the Royal Bank for the funding and administration of Manitoba Student Loans expires on July 31st, 2001. Effective Aug. 1, 2001, students will deal directly with the Manitoba Student Loan Service Bureau to receive and repay their Manitoba Student Loans.
How do students apply for Student Financial Assistance?
To apply, students must submit an Application for Canada Student Loan and Manitoba Student Loan. This application is available at the student aid office in Winnipeg at 409-1181 Portage Ave. or in Brandon at 400-1011 Rosser Ave. Applications are also available at Manitoba post-secondary institutions, high schools and Employment Insurance offices. New this year, students can apply for assistance via the worldwide Web at www.studentaid.gov.mb.ca.
How do students find out more about changes to the Canada Student Loans process?
Borrowers attending a public institution:
National Student Loans Service Centre, Public Institutions Division
P.O. Box 4030, Mississauga, Ontario L5A 4M4
1-888-815-4514 (within North America)
Borrowers attending a private institution:
National Student Loans Service Centre, Private Institutions Division
P.O. Box 779, Station U, Toronto, Ontario M8Z 5P9
1-866-587-7452 (within North America)
How do students find out more about changes to the Manitoba Student Loans process?
Manitoba Student Aid Program
409-1181 Portage Avenue, Winnipeg, Manitoba R3G 0T3
945-6321 (1-800-204-1685 toll-free in Manitoba)
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