“The loan is then transferred to the Canada Revenue Agency, which is responsible for undertaking collection actions to recover the loan balance.” “When a borrower has not made a payment on their Canada Student Loan for 270 consecutive days, and is not receiving assistance through the Repayment Assistance Plan, the loan is considered to be in default,”a spokesperson for Employment and Social Development Canada explained to PressProgress. We’re also going to provide more flexibility on the repayment of federal student loans, so no one has to make a payment they can’t afford.īut until that promise materializes, graduates with student loans are still facing hundreds of dollars in monthly loan payments and the risk of sharp penalties from the Canada Revenue Agency if they miss payments.Ĭurrently, the National Student Loan Centre notifies students if they have failed to make payments on their student loans for 270 days, at which point their case will be referred to Canada Revenue Agency for “collections.” If you’re working on paying back your student loans right now, we’re going to waive interest for an additional year. “We’re also going to provide more flexibility on the repayment of federal student loans, so no one has to make a payment they can’t afford,” Liberal leader Justin Trudeau said earlier this year. The party also repeated its 2019 promise to, also eventually, allow parents with children under five to pause their student loan repayments.

The Liberal Party’s 2021 platform promises to continue its pause on student loan interest to 2023 and eventually eliminate student loan interest. Despite its claims, the Liberal Party’s promise to pause student loan interest won’t protect them from stiff penalties and potential “asset seizures” for missing payments.

Canada revenue agency student loan