The rising cost of higher education coupled with the stress of paying student loans are putting increased pressure on students.
You Have Options
Here are some opportunities available to student loan
borrowers who participate in a bankruptcy-related event…
Do you have a student loan?
Study Interest Free
Students are eligible for interest-free status on full-time student loans while in-study.
Get New Loans
Students have access to new student loans for a maximum of three years, provided that the borrower remains in the same program of study and does not drop below full-time status.
Interest Relief/Debt Reduction
Students are able to access debt management measures, including: Interest Relief and Debt Reduction in Repayment
Debt Management Measures
Repayment Assistance Plan (RAP)
Effective November 1, 2010, the Repayment Assistance Plan (RAP) replaced the IR and DRR repayment measures; although, borrowers approved under those programs will continue to utilize those measures until the applicable end periods. The RAP is a two-stage repayment program available to assist borrowers in repaying their loans over a maximum 15 years and is based on the borrower’s gross family income, family size and payment to Student Loans.
Stage I consists of the first five years in which loan payments not exceeding 20% of family gross income are applied to the principal amount of the loan while the Government covers the interest portion.
If repayment difficulties persist beyond five years, stage II sees the Government continue to cover the interest portion and, eventually, a portion or all of the principal amount along with the borrower’s loan payments, which will continue to be based on gross family income level, family size and payment to Student Loans.
New Loans and Interest-Free Status
Student Loans and Bankruptcy
Student loans will be discharged in a bankruptcy as long as it has been seven years since you last attended school from the time you make a bankruptcy filing. The same seven year cut-off applies for proposals.
For additional information regarding Student Loan issues contact:
- National Student Loans Service Centre
- Public Institutions Division: 1.888.815.4514
- Private Institutions Division: 1.866.587.7452
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