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Seven Year Rule, Student Loans and Employer Funded Courses

Hi there,

I have approximately $43,000 in Canada Student Loans and I was done completed my last course @ NBCC in June of 2007. This is the last time I had student loans or borrowed money at all for my education. Unfortunately, I did not make much once I was done school but luckily I have had employers pay for different courses through the Insurance Institute of Canada and the New Brunswick Insurance Broker’s Association. The Insurance Institute has issued T2202A forms in my name for me to claim the expense when I do my taxes, but I have not done so because my employers paid for everything. I keep getting conflicted information as to whether or not I will be able to successfully complete a Consumer Proposal. Any advice would be helpful. I have the documentation showing that the last time I attended school through National Student Loans was in June 2007 but I am still worried. I can’t afford the payments they want and I am on interest only but it is getting me nowhere. Thanks!

Posted from: New Brunswick

One Response to “Seven Year Rule, Student Loans and Employer Funded Courses”

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Jillian Taylor-Mancusi, Trustee | B.A. | C.I.R.P said...

With respect to a consumer proposal it is unlikely that Canada Student Loans will vote in favour of a proposal. Even if a proposal was approved by other creditors, the deficiency in the student loan would not be discharged upon completion of the proposal. A Canada Student Loans debt can be discharged if the bankruptcy or proposal is filed after 7 years from the end of the month in which you ceased to be a student. Canada Student Loans may still oppose your discharge or vote against the proposal if they felt that you received a benefit from your education that should be repaid in whole or in part.

For more information you can contact a Bankruptcy Trustee in New Brunswick to discuss your options.