Bankruptcy Kitchener Blog by Scott Schaefer

Student loans are a special type of debt in that they are intended to pay for some of a student’s costs of post secondary education. Further, student loans are intended to be given to students who do not have the ability to pay for school expenses. A student generally does not have much income while obtaining post secondary education and the costs of schooling has been increasing, so the loans can grow to sizeable amounts during this period. This becomes an issue when someone needs to repay the student loans and are unable to do so. 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.

As previously mentioned, student loans are unique. Some of the theory behind student loans is that they are considered a life-long investment. 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 with me in my Kitchener office so that you can gain a better understanding, call me at 310-PLAN or send me an e-mail.

Other sites of reference are:
student-loan-bankruptcy.ca
hoyes.com

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