N.W.T. gov't is failing students with cut to financial aid, MLA says

N.W.T. MLA Kieron Testart says the territorial government's decision to end a student financial aid incentive is short-sighted and there are better ways to find budget savings.

"The GNWT, quite frankly, has forgotten that it serves the people of the Northwest Territories," Testart said. "It has become a self-serving organization that is only looking at its own needs first, and everyone else is second."

The territory launched the Northern Bonus in 2015 to attract more post-secondary graduates to come work in the territory. To qualify, locals and non-locals had to be out of school, live in the N.W.T. for 12 consecutive months, and have student loans with federal, provincial or territorial governments. Non-locals were made ineligible in 2023.

The Northern Bonus provided up to $2,000 annually to recipients, with a lifetime cap of $10,000. It was offered in addition to the loan forgiveness still offered through the GNWT's student financial assistance, which has no lifetime maximum.

Until 2023, only residents schooled in the territory qualified for loan forgiveness, but that changed to include all residents who have student loans with the GNWT.

In a social media post on Wednesday, Education Minister Caitlin Cleveland explained the decision to cut the Northern Bonus, and what it means for students. She emphasized that other student financial assistance supports are still available.

The Northern Bonus incentive could be stacked on top of the regular loan forgiveness program that gives $6,000 to $12,000 per year for returning students.

"This acted like a fast forward to paying back remissible loans," Cleveland said in the post. "This means that by removing the Northern Bonus program, in essence we are removing incentives to make it easier to leave the North."

Testart said this sends the wrong message to students. 

"I don't think we want indentured servants in the Northwest Territories, people who are indentured to their loans," he said. "So I think the minister is trying to put a happy face on what is just a cut. This program was to help accelerate people's loan forgiveness."

The government eliminated the Northern Bonus incentive in this year's budget as part of its plan to find $150 million in savings. The strategy announced earlier this year is a government-wide program review to find "inefficiencies and duplication in resources."

Testart said the government needs a better plan than just cutting costs across the board to find savings. 

"We still have a very high cost of living. We're still struggling with inflation, with increasing power rates, with more taxation, and now is not the time to pile more on the backs of students," Testart said.

"If you're going to change fiscal priorities, they need to be leading us somewhere. And right now it's unclear where we're headed, except for an economy that's in decline, a health-care system that's falling apart, and a housing crisis that's not getting any better."

Testart said he'll push for the reinstatement of the Northern Bonus during the next budget deliberations.