Student loans and consumer proposals
In regards to defaulted student loans that are included in a consumer proposal, is it the collection agency or the original lender that votes on whether to accept the proposal?
Also, is it true that student loan lenders typically vote against a consumer proposal? This is relevant to situations where more than half of a debt load consists of student loans.
Posted from: Ontario
Likely your trustee will notify both, but only one will be permitted to vote for or against your proposal. It’s a question for the lender and collection agency to sort out depending on whgo “owns” the debt.
Whether or not student loan lenders vote for or against a proposal comes down to the terms of the deal. In our practice we haven’t experinced any more difficulty with student loan lenders than any other creditors. They are after all, the major Canadian banks and/or the federal and provincila governments. Each case is looked at based on its own strengths and merits. We won’t let some one file a proposal that will be rejected out of hand – what’s the point?