Credit Bureau and Reporting Issues

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Pay or Settle?

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Forum Name: Credit Bureau and Reporting Issues
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URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=7327
Printed Date: 26/March/2026 at 8:48pm
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Topic: Pay or Settle?

Posted By: etruscan
Subject: Pay or Settle?
Date Posted: 26/January/2018 at 3:13am

I have a government student loan dating back many years. Total amount is about $20,000 and with ARO collections. The item shows up on my credit with a last activity date of March 2012, almost 6 years ago. I've spoken with the agency and they have agreed to settle for the principle amount of about $15,000. However, they tell me, the date of last activity will be updated when I settle and I would need to wait an additional 6 years... unless I pay the full amount of $20,000 - in which case, they will expunge it from my credit record and return my points.

Is this legitimate, factual information - or is the agency just trying hard to get the full amount back from me as opposed to the offered settlement?

Replies:

Posted By: SolveStudentDebt
Date Posted: 26/January/2018 at 1:51pm

If you can pay it then you should do so. if you can't, but are to settle it, then you should do so. Credit and it's reporting is the government's leverage over you in that cruel and unusual way. The agency is simply laying out your options.

It's the government wanting you to pay the full amount back. The agency benefits, sure - but they are not the ones who make the rules. If you want assurance that what you are being told is true then you have to call the Ontario government's collection management unit and ask for some written confirmation, or a commitment from them indicating they will do whatever they are claiming to do.

The government's rules that apply to the way third-party agency conduct with borrowers now are very strict. In any event, you have the two good options in front of you and if you are in a position to do either one then you should. Otherwise, set up a monthly payment plan if you cannot, or seek relief fron recoveries in you are not able to pay and can demonstrate that.

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