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What Can I Do if I Can’t Pay My Student Loan in Canada? – Payam

“Dear Steve,

I enjoyed reading your article and I found it very useful. I owe outstanding (private and government) student loan (in Canada). I am still a student and looking for work at the same town.

I am wondering what if I can not get a proper job in Canada (to pay off my loan) and have to come back to my home country for work. If this happens, it won’t be criminal to disobey the court order about the money I should pay (if the creditor wins a lawsuit against me while I am residing outside Canada and if they cannot domesticating the judge order in my home country).

This is because, wages are much lower than that in Canada and I may not be able to pay as an Canadian employee? If it is not criminal, do I have the power to bargain the amount of payment I can afford? Your answer to this question will be GREATLY appreciated. I am looking forward to hearing from you soon.

Thanks A Billion,
Payam”

Don’t miss our free Get Out of Debt – “How To” Guide Series on a number of topics, for loads of practical advice, tips, and help to beat back debt. – Click Here

The Answer

Dear Payam,

The government really doesn’t negotiate on debt that is owed to them. However, in Canada the federal government does have a “Repayment Assistance Plan“.

The idea behind this program is that no one should have to pay back more than they can “reasonably afford.” If you qualify for this program, then their government student loan payments will not exceed 20% of your family income and the loans will be fully repaid within 15 years (the government helps with or forgives payments to make this work).

In regard to the debt with private lenders, that may be open to negotiation or modification if your financial situation isn’t very good. You should contact a reputable debt relief professional in your area to see what their options may be in regards to this. You can look here for more information.

In regards to the legal questions, probably the best thing you can do is find legal help.

I’m not sure what province or city you reside in.

You may want to contact one of these organizations.

Law Line
Lower Mainland 604.408.2172
Greater BC 1.866.577.2525

Lawyer Referral Program Victoria 250.387.5855
$25 plus tax for 30 Minutes, Once Per Day Greater BC 1.800.567.3247
Lower Mainland 604.687.3221
Greater BC 1.800.663.1919

Please post your responses and follow-up messages to me on this in the comments section below.

Big Hug!

What Can I Do if I Cant Pay My Student Loan in Canada?   Payam
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About Steve Rhode

Steve Rhode
Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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