Rehabilitation after default

New Process for 2018-19 Program Year

The B.C. Student Loan Rehabilitation Program helps you rehabilitate your defaulted B.C. Student Loan. Rehabilitating your loan allows you to apply for additional financial assistance or interest-free status and improves your credit.

Am I eligible for loan rehabilitation?

Eligibility for loan rehabilitation depends on the type of B.C. student loan you hold. There are three types of B.C. student loan:

  • Direct lend loans: Loans issued after July 31, 2000
  • Risk-sharing loans: Loans issued between Aug. 1, 1995 and July 31, 2000
  • Guaranteed loans: Loans issued before Aug. 1, 1995

If you have more than one type of B.C. student loan, you must follow the rehabilitation procedures for each type of loan you hold.

Rehabilitating Direct Lend and Guaranteed B.C. Student Loans

Your B.C. student loan is eligible for rehabilitation if:

  • You repay the outstanding debt (principal plus accrued interest) and all associated fees in full

OR meet all of the following requirements:

  • Make the equivalent of two monthly payments to Revenue Services of British Columbia (RSBC);
  • Repay RSBC all outstanding interest, NSF charges and other fees associated with the defaulted B.C. student loan from the date of default;
  • Have your default restriction removed from your StudentAid BC file by contacting StudentAid BC; and
  • Ensure that RSBC repayment requirements are up to date until the rehabilitation request is approved.
*NOTE: Borrowers who rehabilitate their B.C. student loan may be eligible for the B.C. Repayment Assistance Plan. However, to be eligible for any further financial assistance, borrowers must have both their provincial and federal loans in good standing (not in default, delinquent status or bankruptcy, and no provincial or federal overaward restrictions).

If your B.C. student loan has been written off or extinguished as a bad debt, you must contact StudentAid BC to have your loan rehabilitated to be eligible for more financial assistance.

Rehabilitating Risk-Sharing B.C. Student Loans

If you have defaulted on risk-sharing B.C. student loans, please view the information on missing loan payments and about the B.C. Student Loan Rehabilitation Program.

How do I rehabilitate my B.C. Student Loan after default?

Instructions

  1. 1 Contact Revenue Services of British Columbia to establish a repayment plan.

    Mailing address:

    Revenue Services of British Columbia
    PO Box 9483
    Victoria, BC V8W 9W6

    Phone:

    1-866-345-3930

    Website


  2. 2 Make the equivalent of two monthly payments to Revenue Services of British Columbia, and repay RSBC all outstanding interest, NSF charges and other fees associated with the defaulted B.C. student loan from the date of default.
  3. 3

    Notify StudentAid BC that you have met the above criteria via your StudentAid BC dashboard account, email, or phone.

    If you do not have a dashboard you can register prior to submitting your application. You can check your application status from your dashboard. StudentAid BC will process your request within 30 days and notify you of the outcome on your dashboard account.

  4. 4 Continue to make your payments to RSBC while your loan rehabilitation request is being assessed by StudentAid BC.
  5. 5 If your rehabilitation is approved, you will receive a letter from SABC notifying you that your loan is rehabilitated. If your rehabilitation is not approved, you will receive a letter from SABC notifying you that your loan is not rehabilitated.
  6. 6 Once your loan is rehabilitated you will receive a letter from National Student Loan Services Centre to establish your new payment schedule.

About the B.C. Student Loan Rehabilitation Program

If you have defaulted on repaying a student loan, you must request rehabilitation before you can apply for additional student financial assistance, interest-free status or apply for the Repayment Assistance Plan* from StudentAid BC. If you are approved for rehabilitation, your loans will go back into good standing (not in default, delinquent status or bankruptcy, and no Province of British Columbia or Government of Canada Overaward restrictions). Please see Chapter 3 of the SABC Policy Manual for information on rehabilitation after bankruptcy.

*NOTE: Borrowers who rehabilitate their B.C. student loan may be eligible for the B.C. Repayment Assistance Plan. However, to be eligible for any further financial assistance, borrowers must have both their provincial and federal loans in good standing. To rehabilitate your Canada Student Loan please contact the National Student Loans Service Centre at 1-888-815-4514. Unit staff will explain how your situation can be rectified.
NOTE: All rehabilitated guaranteed B.C. student loan accounts will be converted to an integrated Canada-B.C. student loan and administered under the terms and conditions of the Master Student Financial Assistance Agreement (MSFAA) by the National Student Loans Service Centre. If you do not have a signed MSFAA on file at the time of rehabilitation, you may be required to sign and return the MSFAA before the rehabilitation is complete.

Risk-Sharing Loans (loans issued Aug. 1, 1995 to July 31, 2000)

The lender who cashed your risk-sharing B.C. student loan document is responsible for collecting if you default. If you are applying for rehabilitation after default and you have a risk-sharing B.C. student loan, you must negotiate with your lender to bring your loan into good standing. Provide StudentAid BC with a letter of good standing from your risk-sharing lender. See the contact information section for lending agency information.

Lending Institution Contact Information

If you hold a risk-sharing British Columbia student loan and need to contact a lending agency to obtain a letter confirming your B.C. student loan is back in good standing:

Mailing address:

CIBC National Student Loan Centre
PO Box 5055
Burlington, ON L7R 4P3
Attention: Government reconciliation

Phone:

1-800-563-2422


Royal Bank / RBC
Western Student Loan Service Centre
PO Box 4700 Stn D
Toronto, ON M9A 4X5

1-800-363-3822


ScotiaBank
Government Student Loan Administration Centre
PO Box 9 Stn U
Toronto, ON M8Z 5M4


1-888-284-3044