Student Loans and Bankruptcy

There are many reasons why someone cannot pay their student loans, including periods of unemployment, the inability to obtain a job in the field of study thereby lowering projected income, and/or by not getting the benefit of the loans if studies go unfinished. In a bankruptcy or consumer proposal the treatment of student loans is a little bit unique compared to most other debts.

There are several repayment options and programs for student loan holders, but if they simply cannot repay the loans, issues can arise. The government law is that student loans are not discharged (eliminated) in a personal bankruptcy unless the person has been out of school for 7 years from the date their studies were completed. This is referred as the “End of Study Date” and can be obtained by contacting the Canadian National Student Loan Centre or the Ontario Ministry of Colleges and Universities.

Within Kitchener and Waterloo, we have 3 great post secondary schools: Wilfrid Laurier University, University of Waterloo, and Conestoga College. Therefore, I see many people with student loan debts and understand how these student loans compiled with their other debts and financial pressures can be overwhelming. If you are having trouble with your debts, including student loans and want to review your options set up a meeting with me in my Kitchener office so that you can gain a better understanding.