If you declare bankruptcy

Declaring bankruptcy when you have student loans can have serious long-term effects on your financial and educational future.

What is the impact of bankruptcy on my student loans?

  • Immediate repayment required - If you declare bankruptcy, your Canada and B.C. student loans automatically go into repayment status and you must start paying back your loans unless you are pursuing the same course of studies.
  • Long-term ineligibility - If you declare bankruptcy, you may not be eligible for any more StudentAid BC funding until 10 years (or 8 years under financial hardship conditions) after you have left post-secondary studies.

What is the rehabilitation after bankruptcy appeal process?

After you submit your application, StudentAid BC will determine:

  • if there are exceptional circumstances that led to your bankruptcy and that warrant waiving standard StudentAid BC policy
  • that you have made a reasonable effort to rehabilitate yourself financially since bankruptcy (unless you are in school and applying for conditional rehabilitation)
  • that you have clear goals and a focus for your career
  • that your academic standing in your present or previous program of study is successful and warrants consideration for further funding to continue your education.

The case review unit meets monthly. Once the committee has considered your request for rehabilitation after bankruptcy, a letter will be sent to you confirming the decision.

The case review unit's recommendation on rehabilitation after bankruptcy are final. However, if you are denied rehabilitation and you have more supporting documentation that was not provided in the initial application that you think may change the recommendation of the committee, you can submit a new rehabilitation after bankruptcy application with all previous and added supporting documents and details of your bankruptcy circumstances for the committee to consider at a future date.