Nova Scotia students seek grants after tax break ends

The Liberal government axed the graduate retention program in Thursdays budget, but some student advocates say the money saved should be reinvested into grants.

The province will save $49.5 million this year by ending the program, which was designed toencourage graduates to remain in the province.

Finance Minister Diana Whalen pointedto the continued out-migration from Nova Scotia and saidthe Graduate Retention Rebate isnt working. She's ending the rebate with the blessing of student groups.

"We support scrapping that rebate and investing it in programs that actually work for students, like 100 per cent grants,"said Nick Stark, with the Canadian Federation of Students.

"Loans are why young people are leaving this province. A tax rebate isn't going to help them neither is just scrapping that money altogether."

The province will reinvest about $7 million to forgive the interest on loans and handwage subsidies to employers who offer jobs to graduates.