Other times, you need more drastic measures, such as applying for a debt solution, the RAP plan, or possibly filing bankruptcy. Our professionals will help you determine the best plan to pay back your debt while avoiding excessive costs. Assuming a longer term is best is often a mistake people make. Our professionals will help you determine which plan works best for you. Contact us today at to see how we can help you! Is there Student Loan Forgiveness in Canada? Is the Repayment Assistance Plan Automatic?
Do Student Loans go away after 7 Years? Term extension You can extend your term by as much as 15 years. Interest-only payment option You can request interest-only payments for up to 12 months. Share on:. Most university students graduate with student loan debt. While many see bankruptcy as a last result of unmanageable debt, the rules are different for student loans. You are still responsible for student loan monthly payments even after you declare bankruptcy.
However, if you file for bankruptcy at least 7 years from your graduation or end date of being a student , your student loan debt is eligible for discharge. Therefore, if waiting 7 years to include your student loan debt in bankruptcy is too difficult, you might benefit from the hardship provision. Sometimes, the court rules in favour of reducing the bankruptcy eligibility period for student loan debt from 7 years to 5 years. The court will examine your financial records and look at how you spend your loan money.
The court will also review your efforts to complete your schooling, as well as your use of other assistance programs. Undue hardship, in this case, means financial difficulty. If you can prove that repaying your loan will hurt your finances significantly, such as affecting your ability to pay your basic living expenses, the court will consider that.
If your student loan debt is relatively fresh and younger than the 5- or 7-year rule for declaring bankruptcy, other options are available. For example, the Government offers a few student loan forgiveness programs. Most student loan borrowers are eligible for a revisi on of terms. You can request a change in your loan terms if you want more or less time to pay off your debt.
A revision of terms offers extensions of up to 15 years, which lowers your monthly payments overall but results in more interest paid overtime. You can temporarily extend your loan term to reduce your overall monthly payments. An extension helps you permanently lower your monthly payment amounts. However, you will pay more interest over time with this option. For a maximum of 12 months, you can make interest-only payments. Students can apply to this program once they begin paying off their student debt.
Email this page to a friend. Am I eligible for a debt reduction grant? You may be eligible for the debt reduction grant if you meet the following criteria: Debt Reduction Grant Eligibility Criteria Academic years prior to August 1, Academic years after July 31, You have graduated from your program, earning either a degree, diploma, or certificate.
How much money may be available? Published date:. August 29, Education and Lifelong Learning. Additional Links Island Advantage - George Getting a Student Loan. Island Advantage - Needs
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