Collection of Old - Stats Barred - Loans - 15 year old student loan

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15 year old student loan

Printed From: CanadaStudentDebt.ca
Category: Immediate Attention and Info!
Forum Name: Collection of Old - Stats Barred - Loans
Forum Description: Post questions about old loans and Statute of Limitations Issues
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=5558
Printed Date: 26/March/2026 at 10:42pm
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Topic: 15 year old student loan

Posted By: ehee
Subject: 15 year old student loan
Date Posted: 15/December/2009 at 7:42am

Hi,

I'm new to this forum. Long story short, I defaulted on a loan issued in 1994 (before changes were made to the Act). I never officially acknowledged the Canada part and it has been cleared of my credit rating. To my understanding it fell under the 'guaranteed' section of the Student Loan Act, and was paid by the government to the bank. I made restitution in 2005 for the provincial part.
My question now is, can I be eligible for another student loan? I am a bit unclear with the statue of limitations regarding this. According to NSLSC website I am not eligible as my loan is still in default and must be cleared. Am I owing to the government now? Am I debt free but unable to borrow again, ever?
I thought I'd ask on this forum before calling up the government.

Any knowledge or experience with this would be greatly appreciated.

Thanks so much

EMH

Replies:

Posted By: charms
Date Posted: 15/December/2009 at 11:12pm

I'm in a similar situation. My debt has 'fallen' off my credit record. I was never contacted by creditors, nor has my debt been active in the last 9 years (which I was able to note via ecofacts). My entire loan was a full Canada Student Loan prior to the provincial loans being distributed as part here in BC.

I've been attending school for a semester (have my English final in 6 hours!) and am finding it difficult to balance achieving top grades, working, and living off my parents. I'm contemplating getting a student loan and have begun the process.

Upon doing quite a bit of research into the exact state of my situation, and reading the CSL act, I realize that no legal action can be taken against my debt by the government, as it falls into the statutory barred section. I also realize that the government is obligated to provide me with a student loan as I meet all the criteria outlined within the act in regards to the certificate of eligibility.

One concern I have, is when filling the online application for BC student loans, in the personal information section, it explicitly asks if you have ever cashed a student loan. My concern is that this could be viewed as an 'acknowledgement' of the past debt; therefore, reenacting the past debt without the need for enforcement.

Would it be better to answer this question wrong? Also, has anyone faced this situation - A statutory barred debt, followed by borrowing from the same lender - and are able to provide insight to the outcome?

I'm sure that I'll make the attempt, or at least speak to the financial aid people at the University. And I'm sure people have attempted this before. Any knowledge would help tho.. -don't want any dead 18,000 pound monsters crawling back into my life. -Merci

Posted By: ehee
Date Posted: 16/December/2009 at 3:36am

Thanks,

Acknowledging it is my fear as well. Continuing with my research, I have read that I have to ask the National Student Loan Centre for clearance from default in a written letter. Which constitutes acknowledgment. I live in Ontario now and I am uncertain if the same applies province to province. I'd hate to shoot myself in the foot with this......

Good luck and thanks for sharing!

Posted By: ehee
Date Posted: 16/December/2009 at 4:32am

I came across this website. Thought it might help you.

http://www.aved.gov.bc.ca/studentaidbc/repay/defaultreinstatement.htm

Posted By: charms
Date Posted: 17/December/2009 at 5:59pm

Yes, that link is very useful!

I also researched further upon my last post and found a PDF -

http://www.aved.gov.bc.ca/studentaidbc/schoolofficials/documents/policy_manual_09_10.pdf - http://www.aved.gov.bc.ca/studentaidbc/schoolofficials/documents/policy_manual_09_10.pdf

http://www.aved.gov.bc.ca/studentaidbc/schoolofficials/documents/policy_manual_09_10.pdf - - outlining the guideline for approving student financial aid here in BC. One of the criteria is that the applicant must not be defaulted on previous student loans.

I guess I need to approach my lending financial institution to get a letter of good standing, not so sure if they'll want to give this to me :)

I'm curious to learn about any progress on your front.