Question: I have graduated from college April 2001, I’ve made a consumer proposal on Oct 25 2010 in which I’ve included the Ontario Student Loan as per my trustee, the proposal was approved but Ontario Student Loan are demanding payments from me stating that it does not matter that I’ve graduated over 7 years ago that I am responsible for repayment of the loan because Government Student Loans are guaranteed loans. Is that true, is my trustee wrong?

Answer: No, your trustee is not wrong.  If the proposal is accepted, student loans are included in the proposal, provided you have “ceased to be a student” for more than 7 years prior to filing the proposal.  Obviously it’s more than 7 years between 2001 and 2010, so your student loan is included in your proposal.

There are a number of student loan lenders that have very poor systems.  There are numerous cases where, even though they voted to accept the proposal, they still send out collection letters, because “the left hand doesn’t know what the right hand is doing”.

Ask your consumer proposal administrator to send another letter to the lender, and that should be enough to put a stop to it.

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