Sometimes when individuals are applying for a student loan they have not even established a credit rating as they are just finishing high school and starting on their journey into college or university.

Although you are not required to start making student loan payments until completion of your program/degree or six months after you stop attending, you find yourself unable to make student loan payments which can then affect your credit rating.  When negative information is reported on your credit report, it may affect your ability to receive other credit such as credit cards or even a mortgage.

Here are some tips to consider related to student loans:

• Generally, student loans cannot be included in a bankruptcy until a considerable time has elapsed
• Student loan arrears are reported on the consumers’ credit report for six years from the date the loan become overdue.
• As large amounts that are generally involved, student loan debtors are at risk of being sued if they ignore the creditor or its agent.
• Inquire about relief programs for student loan debtors experiencing financial hardship.

For more student loan information, please visit Ministry of Advanced Education’s Student Aid BC Website.

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