What happens if I don't repay my student loan?

If you don't repay your student loan you could face:

  • added interest charges
  • loss of eligibility for future StudentAid BC funding
  • being contacted by a collection agency
  • a bad credit rating and inability to get credit, for example not being accepted for contracts for cellular phones, etc.
  • loss of future income tax refunds and tax rebates
  • being taken to court
  • garnishment of your wages
  • liens against your property
All repayment activities are reported to the credit bureau. Missing payments affects your credit rating.

IMPORTANT NOTICE TO BORROWER: NSF Fees
If your B.C. student loan agreement is for loan amounts disbursed from August 1, 2000 to August 1, 2011, then effective March 1, 2012, NSF charges for non-sufficient funds will no longer be applied under your B.C. student loan agreement in respect of dishonoured payments in the following circumstances:

  1. a. if the due date of the payment is on or after March 1, 2012; or
  2. b. if the due date of the payment is before March 1, 2012, and the payment is credited and reversed effective on or after March 1, 2012.

Direct Lend Canada-B.C. integrated loans

If your Canada-B.C. integrated student loan is 270 days overdue, your loan will be considered in default and collection activities will proceed.

Defaulting on your loan can disqualify you from:

  • Receiving future student financial assistance.
  • Applying for repayment assistance under the Repayment Assistance Plan.
  • B.C. debt management measures.

Guaranteed loans

If your guaranteed B.C. student loan is 180 days overdue, you will not be able to get any more funding from StudentAid BC. Your lender or bank will forward your loan to Revenue Services of British Columbia. They will assign a collection officer to work with you to set a new repayment schedule.

Risk-sharing loans

If you miss two monthly payments in a row on a risk-sharing loan, you will not be able to get any more funding from StudentAid BC. Your lender or bank is responsible for collecting your loan. If you declare bankruptcy during an interest-free period, your lender or bank will send your B.C. student loan to Revenue Services of British Columbia for collection.