Frequently Asked Questions

What is the current case status?
The charter challenge brought by the Canadian Federation of Students was heard in Ontario Superior Court on June 16, 2004. A ruling that upheld the current ten-year prohibition was announced on June 30, 2005.

Have there been any political developments regarding the 10-year prohibition?
On November 4, 2003, the Senate Committee on Banking, Trade, and Commerce released its report on the Bankruptcy and Insolvency Act. The Report called for the reduction of the student loan bankruptcy prohibition from ten years to five years. The Committee's report was made available to all Senators and Members of Parliament, but because it was a special report, it does not require action from the Senate or the House of Commons.

The former Parliamentary Secretary (with special emphasis on Student Loans) Paul Bonwick has stated publicly that the 10-year prohibition is too harsh. Bonwick failed in his re-election bid in June 2004. In the July 2004 cabinet shuffle, the position held by Bonwick was not included in the Prime Minister's new Cabinet.

On October 20, 2004, New Democrat MP Alexa McDonough (Halifax) introduced private member's bill C-236 (read the text of the bill here). The bill proposed to reduce the prohibition on Canada Student Loans from ten to two years. It was defeated on April 13, 2005 at second reading.

Industry Minister David Emerson tabled legislation on June 3, 2005 to, among other things, reduce the prohibition to seven years.

When does the 10-year prohibition begin?
The prohibition begins at the date one completes one's studies. If one returns to full-time or part-time studies, the ten-year "clock" starts at zero after the completion of the new study period, regardless of whether or not one took out a student loan.

How can I get involved in changing this law?
We are not accepting additional witnesses or plaintiffs for the charter challenge. However, it is useful to have a description of your hardship and circumstances on file when we need to put a "human face" on the suffering that this law has created. We pledge to keep your name and contact information confidential. Don't forget to write your Member of Parliament!

Where can I chat with others who have experienced stress related to student debt?
Visit www.canadastudentdebt.ca

I am being harassed by collection agents. How do I know my rights?
Each province has legislation governing the behaviour and tactics of collection agents. In most provinces, the legislation sets specific guidelines for where and how often agents can call. If you have been contacted by a collection agent, it is recommended that you become familiar with the legislation in your province. www.canadastudentdebt.ca is a great resource too.

Can you lobby the government about my personal circumstances?
No. The Canadian Federation of Students is a national lobby organisation whose government relations priorities are determined democratically by its membership.

Can you give me personal advice about my debt situation?
No. Although we understand and sympathise with the circumstances of persons struggling with massive student debt, we do not have the resources to counsel those who are in need of professional advice.