Your Canada Student Loan is considered to be “delinquent” If you are behind in payments. If your loan is delinquent for longer than 90 days, you can’t access the government’s all-important Repayment Assistance Plan (RAP).

It’s critical to know that you have to apply for assistance before serious circumstances of your student load debt put you in trouble. Once you’re 90 days behind in your monthly payments, you can’t apply and you certainly can’t apply if you’re in default.

Your loan is considered to be in default if you haven’t made any payments on your loan in 270 days or nine months for Ontario and 150 days for BC. It will be sent to the Canada Revenue Agency for collection. The agency will come after you for the money owed, including drawing from your GST and income tax refunds. It can also initiate legal action and garnish your wages.

If you have difficulty making your loan payments, you are not alone. We can help you with your application for repayment assistance. The government can reduce your monthly payment in accord with your income, forgive interest on the loan, and in some cases waive payments against the principal.