Debt Options Guide
Student Loan Debt in Canada
Updated
Federal Canada Student Loans have not charged interest since April 1, 2023, and the Repayment Assistance Plan (RAP) can lower or pause payments based on income. In a consumer proposal or bankruptcy, student loans are only released if at least seven years have passed since you stopped being a full- or part-time student (or five years with a court hardship order).
If you can't make payments
- Apply for the Repayment Assistance Plan through the National Student Loans Service Centre
- Ask about the separate provincial portion of your loan if you have one
- Don't ignore missed payments — defaulted loans go to the CRA for collection, which can withhold tax refunds
Student loans and insolvency
If you're under seven years since leaving school, a proposal or bankruptcy can still release your other debts, freeing up money for student loan payments, but the student loan itself will survive.
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Related guides
- Consumer Proposal in Canada: How It WorksHow a consumer proposal works in Canada: who qualifies, the $250,000 limit, the 5-year maximum, the creditor vote, credit impact and what it costs.
- Bankruptcy in Canada: How It WorksHow personal bankruptcy works in Canada: the 9 or 21 month discharge, surplus income, exempt assets, which debts survive and how long it stays on your credit report.
- CRA Tax Debt and the Requirement to PayWhat a CRA Requirement to Pay means, how CRA garnishes wages and bank accounts, payment arrangements, taxpayer relief, and how tax debt fits into a proposal or bankruptcy.
Sources
DebtDefender is an independent information site, not a Licensed Insolvency Trustee or law firm. This guide is general information, not advice for your situation. See our disclaimer.