![]() ![]() three years after the date of filing if the bankruptcy-related event occurs between study periods.Ī borrower who is still completing their program of study when three years have elapsed from the date of filing may complete their current study period before going into repayment.three years after the end date of the period of study during which the bankruptcy related event occurred (i.e., date of filing), or.When a student loan borrower files for protection under the BIA while in a current full-time program of study, the borrower may maintain interest free status and continue to receive Alberta Student Aid funding for up to three consecutive years to complete the current program of study, provided the student does not take a break in studies of six months or longer.Ī borrower is eligible for interest-free status and additional Alberta Student Aid funding until the earlier of: Filing for protection under the BIA includes:įiling for Protection under the BIA While in Studies This section addresses the implications of filing for protection under the Bankruptcy and Insolvency Act (Canada) (BIA) on student loans and the impacts on a student loan borrower’s eligibility for further Alberta Student Aid funding. Implications of Filing for Protection Under the Bankruptcy and Insolvency Act (Canada) The rehabilitation requirements are found on the Government of Canada website under Rehabilitate your Canada Student Loan. Students with a Canada Student Loan that has been restricted must contact National Student Loans Service Centre and comply with Canada Student Financial Assistance Program’s requirements to rehabilitate the default. Rehabilitating Canada Student Loan Defaults With an Alberta student loan or grant overpayment for which legal action was taken by the Minister to collect the debt and a judgment was obtained or a settlement was reached, must pay the judgment order or settlement amount in full.Ī student with a defaulted Alberta student loan still held at a financial institution is not required to rehabilitate their Alberta student loan debt.Approved for Special Consideration on an Alberta student loan due to a disability must pay all outstanding interest and make the equivalent of two months of required payments.Ī student is not required to rehabilitate their Alberta student loan debt if the approval for Special Consideration occurred prior to August 1, 2001.If a settlement was reached, the student must pay the settlement amount in full. If a judgment was obtained, the student must pay the judgment order in full. The student must contact Treasury Board and Finance – Crown Debt Collections to rehabilitate their defaulted loan and/or grant overpayment.Ī student is not required to rehabilitate their Alberta student loan or grant overpayment if the default occurred prior to August 1, 2001, unless legal action was taken by the Minister to collect the debt and a judgment was obtained or a settlement was reached. With a defaulted Alberta student loan or grant overpayment in collections at Treasury Board and Finance – Crown Debt Collections must pay all outstanding interest and make the equivalent of two months of required payments.Īlberta student loans are transferred to Treasury Board and Finance – Crown Debt Collections when 150 calendar days past due. ![]() Options such as change of repayment terms, repayment assistance and/or reinstatement to interest free status may be available to these students. With a delinquent Alberta student loan at the Alberta Student Aid Service Centre must bring the loan up-to-date and into good standing.Īn Alberta student loan is delinquent if the loan is two months past due from the last payment due date or has 90 calendar days of interest owing.In order to be considered for further student loans and grants, a student: Rehabilitating Alberta Student Loan Defaults and Grant Overpayments recovery through the Canada Revenue Agency Refund Set-Off Program that allows the province to recover a student’s defaulted Alberta Student Loans from the student’s income tax refund or GST credits.If a borrower defaults on their loan, steps will be taken to recover the debt. If a student defaults on either a Canada Student Loan (full- or part-time), Canada Apprentice Loan or an Alberta student loan, restrictions are applied and all types of assistance (full- or part-time) administered through Alberta Student Aid may be denied until the defaulted loans have been rehabilitated. Defaulting on student loan payments has an impact on a student’s eligibility for future funding.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |