Paid off student loan 10 months before proposal
About 10 months ago, I paid off a Canada Student Loan with money from a line of credit.
I then requested the bank change the line to a 5 year installment loan so I could have lower payments and a fixed interest rate. They did this for me, and closed the line of credit as I requested.
Will the bank think I paid off the student loan to avoid being stuck with it after my proposal or bankruptcy? I expected to be able to pay off the full amount over the five year period when I took it out.
Who can say what the bank will think? Presumably they performed their own analysis of your situation when they gave you the line of credit and then again, when they gave you the loan. Unless something in your situation has changed, it sounds like the bank made a mistake when they paid out your student debt and now they may have to live the consequences of that mistake…