A student loan is considered to be in default when you are behind on your payments for nine or more months and collection activities are required.
Defaulting on your loan can disqualify you from future student financial assistance and from repayment assistance such as the
Repayment Assistance Plan
If you default on your loan, the governments of Canada and Newfoundland and Labrador, the National Student Loans Service Centre and/or your financial institution will take steps to recover the debt. These steps may include redirecting any GST or income tax refund to pay your student loan, reporting you to a credit agency, using a private collection agency to recover the funds or taking legal action.
You must first determine where your defaulted loan is currently held. This depends on the consolidation date of your loan and the default date.
Please consult the chart below to determine who you should contact to discuss issues related to your defaulted student loan.
Where is my defaulted student loan?
|Prior Aug 1, 2000||Post Aug 1, 2000|
|Default Date||Prior Aug 1, 2000||CIBC National Student Service Centre||N/A|
|Aug 1, 2000 - Feb 1, 2007||CIBC National Student Service Centre||Student Loan Corporation|
Post Feb 1, 2007
|CIBC National Student Service Centre||Canada Revenue Agency|
Forms are available online, or you may contact the corporation to request that a form be mailed to you.
Yes, you may make payments using either personal cheques or post-dated cheques. You must include your account number when using this payment method.
Yes, you may set up a pre-authorized debit arrangement to make payments on your student loans; however, you must first complete and submit a Payor’s Authorization for Pre-Authorized Debits (PADs) form. This form is available online or may be mailed to you by contacting the corporation.
Yes, you may make payments through your online bank account.
Cash, credit card and debit payments can not be accepted at the corporation’s office, but can be made at the central cash office located on the 3rd floor of the east block of the Confederation Building.
When making a payment using a cheque or money order, you must include your account number to ensure your payment gets appropriately recorded.
Yes, you may make advance payments or pay the entirety of your loan ahead of your agreed arrangement.
Yes, you may make payments towards someone else’s loan; however, information on their loan can not be released unless your spouse, son or daughter (or any other person with a student loan balance) has provided the corporation with a completed consent form.
Generally, student loans are not discharged in bankruptcy unless seven years have passed from the last time you were a full-time or part-time student.
If you do not meet this requirement, your student loan will not be discharged. In the case where a student loan is not discharged, payments will not be
required on your loan during your bankruptcy proceeding, but once you receive your discharge, payments on the student loan will be required.
Please contact the Student Loan Corporation for any assistance.
The Canada Revenue Agency is assisting the province in the recovery of its receivables. You must contact the Canada Revenue Agency for further information.
This is the beginning stage of our legal process before the file is sent for default judgment. If default judgment is awarded, the Student Loan Corporation can avail of judgment enforcement tools, which could include wage garnishments or bank account attachments. Making payment arrangements with the Student Loan Corporation can prevent these collection activities from coming into effect. Please call the Student Loan Corporation for further information. If you have received a statement of claim regarding your student loan from the Canada Revenue Agency, you must contact their office to inquire further.
If you still have a loan in collection and believe you have paid your loan in full already, it may be possible that you have a loan outstanding with
the Canada Revenue Agency or CIBC.
This is dependent on two important dates during your studies; when you began receiving student loans, and when you finished your studies.
Please consult the chart above to determine who you should contact to discuss issues related to your defaulted student loan.
An inability to pay your student loan may arise from a variety of reasons; low income, illness, disability, loss of employment, etc.
If you have a loan in good standing, you may be eligible for the Repayment Assistance Plan, which allows borrowers to make payments based on what they can reasonably afford. Please contact the National Student Loans Service Centre to apply for the Repayment Assistance Plan, as enrolment is not automatic.
If you have a Newfoundland and Labrador student loan that defaulted prior to Feb 1, 2007 and are unable to make payments, please contact the Student Loan Corporation to speak with your collection officer. There may be programs in place to assist you.
To request assistance with your defaulted Canada-Newfoundland Integrated Student Loan, or loan issued after April 1, 2004, you must contact the Canada Revenue Agency.
Settlements are considered on defaulted loans with the Student Loan Corporation. For a settlement to be considered, you must provide to the collection officer a copy of your last 2 years income tax assessments, verification of your current employment status, a copy of your bank statement for the last 2 months, and written justification why you can not pay the full amount of your loan obligation to the Student Loan Corporation. Any settlement offer is assessed in accordance with the complete information provided and other relevant information, as applicable.
There are a number of options available to borrowers who incur a permanent disability and are experiencing difficulty repaying their student loans.
Severe Permanent Disability Benefit – Available to borrowers who have incurred a severe permanent disability that prevents him or her from working and from participating in post-secondary education for the remainder of his or her lifetime. You must contact the National Student Loans Service Centre to apply for this benefit, as enrolment is not automatic.
Repayment Assistance Plan for Borrowers with a Permanent Disability - Available to borrowers with permanent disabilities having difficulty paying back their student loans. The plan makes it easier for borrowers to manage their student loans by allowing them to pay back only what they can reasonably afford. You must contact the National Student Loans Service Centre to apply for this benefit, as enrolment is not automatic.
Loan Forgiveness – Available to borrowers with severe permanent disabilities who received Newfoundland and Labrador student loans prior to February 1, 2007. You must contact the Student Financial Services Division to apply for this benefit, as enrolment is not automatic.
You may be eligible to claim an amount for your student loan interest paid on your income tax return. To determine your eligibility, please contact the
Canada Revenue Agency for tax advice, 1-800-959-8281, or visit their website
Annual statements issued by the Student Loan Corporation detail the payments made for the prior year. However, upon request, we will provide a letter stating the amount of interest and principal paid on your provincial student loan.
To obtain your current balance, please call the Student Loan Corporation. Statements are issued annually to all students with defaulted loans and quarterly to those in repayment. However, you may request an up-to-date statement at any time.