Federal Risk Portion of Canada Student Loan
I filed a consumer proposal March 2006. I have a student loan that is 10 years old. I recevi3ed a letter from the federal government that under the Bankruptcy Act my canada student loan was paid to the financial institution. Now the financial institution is coming after me stating that I owe a `federal risk portion` of the student loan and that it has gone to collections forcing me to pay. I am not finding information about this and when it came into effect. Is there such a thing and does it apply to a student loan that is 10 years old.
If you can demonstrate that 10 years has elapsed from the time you last attended school prior to the time you filed the proposal then you shouldn’t have any issue as it is a debt that would be cleared by a bankruptcy or a proposal.
However, if this required time frame has not elapsed then you will be fully responsible for this federal risk portion of the loan.