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FAQs

1. What is a defaulted student loan?
2. My loan is in default. What do I do to start making payments on my defaulted loan? Who do I contact?
3. Where can I get copies of the forms I need to complete, as required by the Student Loan Corporation, to address my defaulted loan?
4. Does the Student Loan Corporation accept personal cheques for loan payments? Can I make my loan payments with post-dated cheques?
5. Can I set up automatic debit payments with the Student Loan Corporation to make monthly payments?
6. Can I make my student loan payments to the Student Loan Corporation online?
7. Can I make my payment at the Student Loan Corporation office with cash/credit card/debit?
8. Is there any specific information that should accompany my payment?
9. I have made arrangements with the Student Loan Corporation to make monthly payments. Can I make advance payments or pay off my full loan ahead of agreed arrangement?
10. Can I pay on my spouse’s, son’s or daughter’s loan with the Student Loan Corporation?
11. Can student loans be discharged in bankruptcy?
12. I received notification that the Canada Revenue Agency will take my income tax refund. What does this mean?
13. I just received a Statement of Claim from the Student Loan Corporation regarding my student loan – what does this mean?
14. I thought I had paid off my student loan. Why am I still receiving collection notices regarding my student loan?
15. I cannot afford to make a payment on my student loan. What can I do?
16. I’d like to settle my account, but I cannot afford to pay the full loan balance. Do you consider settlements?
17. I have incurred a permanent disability and I no longer can make my student loan payments. What can I do?
18. My provincial student loan is paid off but I still owe on the federal portion of my loan. Who do I contact to discuss payments on my federal loan?
19. Can I claim my interest payments on my income tax return?
20. I am unsure of the balance of my loan with the Student Loan Corporation. How can I find out what it is?

 

1. What is a defaulted student loan?

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.

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2. My loan is in default. What do I do to start making payments on my defaulted loan? Who do I contact?

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?

		Consolidation Date
		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

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3.Where can I get copies of the forms I need to complete, as required by the Student Loan Corporation, to address my defaulted loan?

Forms are available online, or you may contact the corporation to request that a form be mailed to you.

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4. Does the Student Loan Corporation accept personal cheques for loan payments? Can I make my loan payments with post-dated cheques?

Yes, you may make payments using either personal cheques or post-dated cheques. You must include your account number when using this payment method.

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5. Can I set up automatic debit payments with the Student Loan Corporation to make monthly payments?

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.

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6. Can I make my student loan payments to the Student Loan Corporation online?

Yes, you may make payments through your online bank account.

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7. Can I make my payment at the Student Loan Corporation office with cash/credit card/debit?

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.

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8. Is there any specific information that should accompany my payment?

When making a payment using a cheque or money order, you must include your account number to ensure your payment gets appropriately recorded.

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9. I have made arrangements with the Student Loan Corporation to make monthly payments. Can I make advance payments or pay off my full loan ahead of agreed arrangement?

Yes, you may make advance payments or pay the entirety of your loan ahead of your agreed arrangement.

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10. Can I pay on my spouse’s, son’s or daughter’s loan with the Student Loan Corporation?

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.

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11. Can student loans be discharged in bankruptcy?

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.

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12. I received notification that the Canada Revenue Agency will take my income tax refund. What does this mean?

The Canada Revenue Agency is assisting the province in the recovery of its receivables. You must contact the Canada Revenue Agency for further information.

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13. I just received a Statement of Claim from the Student Loan Corporation regarding my student loan – what does this mean?

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.

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14. I thought I had paid off my student loan. Why am I still receiving collection notices regarding my student loan?

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.

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15. I cannot afford to make a payment on my student loan. What can I do?

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.

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16. I’d like to settle my account, but I cannot afford to pay the full loan balance. Do you consider settlements?

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.

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17. I have incurred a permanent disability and I no longer can make my student loan payments. What can I do?

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.

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18. My provincial student loan is paid off but I still owe on the federal portion of my loan. Who do I contact to discuss payments on my federal loan?

If your Canada student loan is not in default, you must contact the National Student Loans Service Centre; for defaulted Canada student loans, please contact the Canada Revenue Agency.

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19. Can I claim my interest payments on my income tax return?

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.

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20. I am unsure of the balance of my loan with the Student Loan Corporation. How can I find out what it is?

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.

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