Hi! Before I ask my question, I'll give a bit of background info on this topic. First of all, I live in BC, Canada, and I received a student loan through both the government of BC and the federal government of Canada in 1997. I was a little more interested in a social life than a school life at that time and I ended up defaulting on the loans. Fast forward 11 years and I just recently received a call about this debt. I am now a stay at home Mom with my husband being the main bread winner. I am more than willing to pay off this debt, but I cannot pay it off in whole like they requested. So my question is this,

"What exactly can they do in order to collect this debt?"

I tried to talk to them about setting up a payment plan, but they didn't want to hear it. They then wanted info on my husband, which I did not give them. Also, does anyone know if the Statute of Limitations applies to student loans? Any info on this matter would be greatly appreciated! :)

Thank you!

In Canada, a student loan debtor can have three student loans.. a provincial loan, a federal guaranteed loan (HRSDC) and a bank risk portion (non guaranteed federal loan). If you read the last section of the Canada Student Loans Act and the Canada Student Financial Assistance Act you will find the limitation periods. SOL hard to use on student loans.

Private Collection agencies are hired to collect the debts in some cases. They use the tactic of demanding the money in full. The biggest culprits are CBV and NCO. They need the bank's or govt's permission to sue. If you are paying, it is unlikley that they will sue if you are making in effort. IN most cases, legal action on student loan leads to bankruptcy.

In Canada, a student loan is dischargeable in a bankruptcy or consumer proposal if you have been out of school for 7 years.

Send the collection agency a financial summary supporting the payment you wish to make and make those payments. Do not get into a debate with them. You do not need their permission to make payments only their address.

That really helps. Thank you! :)