Thank you, Mr. Chairman. Mr. Chairman, the Student Financial Assistance Act, establishes a program of grants and loans to assist eligible NWT students pursuing post-secondary education. All loans issued through this program are made from a revolving fund, which has a loan limit identified in the schedule to the Student Financial Assistance Act. The present limit is set at $21 million. Without this amendment, we will exceed this limit this year with the steady application of students seeking loans.
Since the revolving student loan fund was established in 1982, the number of students requesting loans have increased annually. For example, the number of students receiving loans has grown from over 600 in 1990-91 to over 1,700 in 1997-98.
The limit for the loan fund was set at just under $1 million in 1982-83 and over $7 million for 1986-87. Since then, the limit has been increased a number of times to provide more working capital to meet the demand for loans.
With continual increases in the number of students receiving loans, the total value of loans issued continues to increase. The value of loans issued also continues to exceed the value of loans repaid, remitted and written-off each year.
The last time the loan fund limit was increased was in 1997. Bill 10 is proposing an increase in the loan fund limit from $21 million to $22 million for 1998-99 and subsequent years.
An increase in the limit now is necessary to continue to provide loans to eligible students this year and next year. Thank you, Mr. Chairman.