New Brunswick university students are failing to take advantage of a series of debt reduction programs being offered by the provincial government.

The provincial government implemented a Timely Completion Benefit program that caps a student's debt at $26,000 if they finish their degree on time.

But after the first year, only half the number of students expected to participate in the program actually asked for the debt relief.

The lack of uptake on the program was part of the reason why the Department of Post-Secondary Education and Training budget ran a significant surplus.

Finance Minister Greg Byrne said the provincial government could do a better job of getting the message out to graduates about the debt-relief options that are available to them after they finish their studies.

"We want to get the message out. We want students to take advantage of this program, so if we can use other tools more effectively, we want to do so," Byrne said.

'I was in debt $36,000 after my four years of university. And now, because of this, it's only $26,000, so it's quite a significant decrease.'— Michelle Johnson, St. Thomas University graduate

Byrne said he wants students to help spread the word too.

Michelle Johnson, a graduate from Fredericton's St. Thomas University, is one of the many students who were unaware of the program initially.

Johnson now has a one-page form that should save her $10,000 if she is approved for the province's Timely Completion Benefit.

"I was in debt $36,000 after my four years of university. And now, because of this, it's only $26,000, so it's quite a significant decrease," Johnson said.

But Johnson said she only found out about the debt-reduction initiative from a roommate.

Application process

The New Brunswick Student Alliance says too few students know about debt reduction programs offered by the provincial government and are hoping that new steps will be taken so more people find out about the options open to them.

Mark Kroeker, the treasurer of the New Brunswick Student Alliance, said another problem is that not enough students are eligible for the benefit along with other programs.

He thinks debt should be capped on an annual basis, so students don't become overwhelmed by the amount of money they are being loaned.

And the student leader also said the provincial government should reconsider how students enroll for the debt-reduction initiative.

"It's an application process, so it doesn't happen automatically," Kroeker said.

"And we're lobbying the government to make sure that that happens automatically."