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    scott100's Avatar
    scott100 Posts: 1, Reputation: 1
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    #1

    Apr 17, 2009, 12:57 PM
    Canada student loan statute of limitations
    I took out a because and canada student loan in 2000, 2001 and 2002. I need to know when it becomes statute barred and, specifically, when the government must stop seizing my tax returns and gst payments. There has never been a payment made on this account and the date of last disbursement of money to me was September 2002. Any help would be greatly appreciated. Thanks.
    tickle's Avatar
    tickle Posts: 23,801, Reputation: 2674
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    #2

    Apr 17, 2009, 01:20 PM

    Apparenty Statute of Limitations does not apply to student loans in Canada. You can read the following which is an excellent explanation and the credability of the article is authenticated at the bottom so anyone can probably look it up.

    You haven't said why you never paid the student loan back, but you probably started working and forgot, run into hardship along the way, any one of the usual reasons young people don't pay back debt.

    Anyway, scottll0, this article gives you some options to follow, so the rest is up to you.

    Revenue Canada and Student Loan Blues?
    By Bonnie Krisher (K&G Debt & Credit Professionals)

    It is commonly known that the government can behave in ways that most other creditors cannot in order to obtain payment for debts that are owed to them. For example, if you owe money to Revenue Canada, it is well within their means to freeze bank accounts, garnish wages, GST, or tax refunds, often times without your knowledge. These are only a few of the things that Revenue Canada can do if you become delinquent on your payments or any money owed to them.

    What are some options? Well you can:

    * Apply to the Fairness Committee. If possible, do so in person. You may be able to arrange a special payment plan or have a portion of the debt forgiven. Remember, if you have little or nothing that they can take from you, then you are in a great position to negotiate. Especially, if you have access to resources from external means (i.e. friends and family).
    * Request your personal file from CRA and prolonged the process. This is an important option if you want to dispute the debt.
    * If you have a high debt load you can claim bankruptcy and have a portion of your CRA debt forgiven; usually, penalties and interest (consider speaking to a bankruptcy trustee for more information; remember that not all trustees are created equally).
    * Finally, there are lawyers that are prepared to take on cases when the debt is over $100,000.00. They will try and have a portion of the debt forgiven or cleared. We are still searching for a company that will take on debts under $100,000.00.

    The good news is that the US government is starting to privately settle for a lump sum payment of less than what is owed. It is common for Canada to follow changes that occur in the United States. Revenue Canada has also been sued for breaching the Statute of Limitations (6 years) and has lost. They are often difficult to deal with, but not impossible to fight.

    Student Loans on the other hand are becoming easier to resolve than taxes owed.

    1. Student loans are treated in much the same manner as other unsecured debts once they have entered into collections. The collections department will often take a settlement of less than what is owed. It is important to be persistent.
    2. Student loans can be dealt with in a bankruptcy, but it must be 10 years since your last day of school.
    3. If a judgment is obtained and is followed by a garnishment, the government can garnish 15-50% of your cheque as long as it does not cause you hardship. If it does cause you hardship, then represent yourself and let the judge know.

    In conclusion, the government can be difficult to deal with, but there are options for you, so do your homework.

    Bonnie Krisher, CDA / K&G Debt & Credit Professionals, www.kgdebt.ca
    Lowtax4eva's Avatar
    Lowtax4eva Posts: 2,467, Reputation: 190
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    #3

    Apr 17, 2009, 01:25 PM

    Agreeing here, I looked this up and student loans do not just go away and even if you declare bankruptcy the loan will not go away unless it's 10 years old as stated above.
    tickle's Avatar
    tickle Posts: 23,801, Reputation: 2674
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    #4

    Apr 17, 2009, 01:30 PM

    My son graduated a few years ago from Durham College. He didn't need a student loan because when he was born his dad arranged for a Canadian scholarship fund whereby $60. Was deducted every month to go into a resource for his education. When the time came for him to enter college, the funds were there for him for us to access and everything was paid for through this wonderful Canadian agency. They invested the money. It was well worth the sacrifice in the early years.

    He didn't have to get a student loan, but he told me years ago that the students that did, didn't use it for education, but to buy cars, luxury items, etc.

    Tick
    Iknowalotofstuff's Avatar
    Iknowalotofstuff Posts: 144, Reputation: 1
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    #5

    Jun 16, 2009, 02:39 PM

    No SOL as each payment coming from tax return restarts the limitation period.
    workingclass's Avatar
    workingclass Posts: 1, Reputation: 1
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    #6

    May 18, 2017, 07:16 AM
    What an ignorant comment "tickle" makes from her privileged high horse. Us underprivileged working class people(meaning people that work all their lives, without sitting behind a desk, and never ever move up the class ladder) take student loans to go to school. Our parents struggled to keep us in clothes and food. Without having an extra $60 per month to save for our education. She and her son are ignorant classist scum for disparaging the less privileged.

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