Free Consultation

I just want to pay my loans!

It has been over a year since I have been discharged but the National Student Loan Centre says they cannot take payments from me until they receive a “full discharge”. What is it? Where do I get it? Nobody has answers for me.

I have another student loan directly through a bank (before NLSC existed) and they received the paperwork so I can start making payments.

I am confused and would appreciate clear information.

Confused and Frustrated

Posted from: Ontario

One Response to “I just want to pay my loans!”

A licensed trustee said...

It sounds like you’ve run into an internal policy based on some incorrect information. There are 3 different “discharges” in a bankruptcy. the first is when you are discharged from your debts – this is the one that is the most important to you. It means you are no longer responsible to repay the debt. The second and third discharges happen simultaneously – once the administration of your file has been completed the trustee applies for their own discharge from your bankruptcy and that causes the discharge of all of the debts.

If I had to guess, whatever trustee you used to file bankruptcy simply hasn’t obtained their own discharge yet and so thr student loan centre is waiting for that to happen before they will allow you to start making payments. I understand why they might adopt such a policy – usuually the notice of teh trustee’s application for discharge includes a cheque for the creditor’s share of the moeny collected in your bankruptcy. Until they receive the cheque (if any) the national student loan centre doesn’t now how much you may still owe.

It’s a bad policy – they should start collecting as soon as you are willing to pay, but I suspect that’s what is happening to you. Try calling your trustee and asking them if/when they will be discharged from your bankruptcy.