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

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

  • 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.