Debt Reduction Program Information
Debt Reduction After Graduation
All students who have qualified and negotiated their Nova Scotia Student Loan in an academic year beginning August 1, 2003 and beyond can apply for Debt Reduction when they graduate. Any award will be paid directly to the lender, and applied against your Nova Scotia Student Loan balance. All awards are subsequent to the application of any Canadian Millennium Foundation Scholarship Award.
Applications are available by contacting the Student Assistance Office or by clicking here.
To qualify for the program, you must have:
- Qualified and negotiated a Nova Scotia Student Loan for the academic year 2003/04, 2004/05, and/or 2005/06,
- Studied at an Educational Institution in Canada,
- Successfully graduated from the program for which you obtained the NSSL.
Include with your completed application:
- University Graduates: a complete transcript, including transfer credits (if applicable) and date of graduation.
- Community Colleges or Private Career College: copy of your transcript and diploma.
Debt Reduction is awarded based on a students loan profile, with a graduated rate awarded for each year of Nova Scotia Student Loan, up to a maximum of program length plus one extra year.
The table below shows the percentage of Debt Reduction you would qualify for based on your Nova Scotia Student loan year for academic years after 2003/2004.
| Year of Nova Scotia Student Loan |
NS Student Loan |
Debt Reduction % |
Debt Reduction Award |
| Yr 1 of NSSL for program |
$5100 |
15% |
$765 |
| Yr 2 of NSSL for program |
$5100 |
25% |
$1275 |
| Yr 3 of NSSL for program |
$5100 |
35% |
$1785 |
| Yr 4 of NSSL for program |
$5100 |
45% |
$2295 |
| Yr 5 of NSSL for program (extra year) |
$5100 |
15% |
$765 |
NOTE: If you received a Millennium Scholarship for a loan year, this award will be deducted from your Nova Scotia Student Loan and Debt Reduction will be calculated on the remaining amount.
Transferring Credits when you switch Programs
Since Debt Reduction is based on successful completion of the program for which you obtained a Nova Scotia Student Loan, transfers of credits to a new program will only be eligible if a minimum of 3 full credits are transferred per academic year. For example, if a student enrols in a BA program, but transfers to a BSc program, a minimum of 3 full time credits for each year of the BA program must be transferred for that loan year to be considered for Debt Reduction.
In addition to the Debt Reduction payment made upon successful completion of studies, you may be eligible for two (2) additional awards.
Employment Bonus Award
If you work in Nova Scotia full time, and can demonstrate 50 weeks of full time employment in Nova Scotia in the three year period subsequent to graduation, you can receive an additional 50% of the amount of Debt Reduction for which you received at graduation. You can download and complete the application by clicking here.
Repayment Bonus Award
If you make 12 payments on your Nova Scotia Student Loan within three years of graduation (full principal plus interest), you will receive an additional 20% of the amount of Debt Reduction for which you received at graduation.
Please contact the Student Assistance Office for further information on these two additional awards.
