Consumer Proposals and Student Loans.

Student Loans
Richard Sklar Posted by:
Richard Sklar, CIRP, LIT
Licensed Insolvency Trustee

Table of Contents

After university – many former students are left with sizable student loans to pay.

What happens to student loans when a former student has masses of other unmanageable debt and is considering a Consumer Proposal?

If it has been more than seven years since the person ‘ceased to be a full-time or a part-time student’ then they might be able to include the student loans in their Proposal. However, if it has been less than seven years, they will most likely not be able to erase their student loans with a Proposal. Individuals need to speak with a Bankruptcy Trustee to review the specifics of their situation.

How does a Consumer Proposal work if the student loans cannot be erased in the Proposal?

In general, once it has been accepted by the majority of the unsecured creditors, the Proposal proceeds in the standard manner. Monthly payments are made to the Trustee, who disburses the payments to the unsecured creditors, including the holders of the student loans.

Once a Consumer Proposal is successfully completed, the former student is required to start making their student loan payments again. During the Consumer Proposal period, the interest on the student loans continues to be added to the debt, so it is likely that at the end of the Proposal, the total owing on the student loans will be more than when the Proposal started.

We suggest it might be in their best interest for the debtor to maintain a payment to the Student Loans Program, if they are able to afford this after taking into consideration their proposal payment and other obligations. Maintaining even the interest only portion, will keep the total loan within grasp.

If you have outstanding student loans and are considering a Consumer Proposal or a Bankruptcy, you need to speak with a Licensed Bankruptcy Trustee. If you live in the GTA, call David Sklar & Associates to set up a free initial consultation, where we will review your situation and explore all of your options with you.

If you are burdened with student loans here are some of the services you should check out:

Take Your First Step Towards A Debt Free Life

If you are overwhelmed by debt, call us at 1-844-962-9200 to book a FREE, confidential appointment. We will review your financial situation in detail and discuss all of your options with you. Alternatively, you can fill out the form below and our team will reach out to you. 

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David Sklar & Associates Inc. – Consumer Proposals & Licensed Insolvency Trustees
David Sklar & Associates Inc. – Consumer Proposals & Licensed Insolvency Trustees
5.0
Based on 765 reviews
The team at David Sklar and Associates Inc are very professional and are willing to help you get out of debt. Highly recommended.
Melissa MacKenzie
12:35 29 Mar 23
I would like to thank the team at David Sklar and associates inc. for all the time and effort they put in to support this process for me. This topic can be challenging to disclose but a big thank you to Christine for going above and beyond in guiding me through all my options and supporting me through the decisions. I cannot recommend this group enough , as they have shown me compassion , knowledge , and understanding throughout the entire process. I look forward to the next step of this process and learning how the proper way of becoming financially educated through the support of their financial counselling team. For anyone who is struggling , just know that there is a wonderful group of educated professionals at David Sklar who are available to help!
Michelle Plouffe
18:45 14 Mar 23
It took me awhile to get up the courage to contact David Sklar but I’m so glad I did. Trina walked through my options with me and provided the knowledge I needed to make a decision to help turn my financial situation around. She is patient and empathetic and answered any and every question that I had. Trina provided me the reassurance I needed that I was making the best decisions for me and my family. I’m so happy that I reached out and now have a plan to get back on track.
M. Mackenzie
19:59 12 Mar 23
Trina was very helpful and thorough.
Sam M
15:26 12 Mar 23
Christine was very helpful, kind, and understanding. She explained everything thoroughly, answered any questions I had, and was responsive to any concerns I had. 100% would recommend
Katherine Campbell
17:29 08 Mar 23
Jackie Stanley is excellent she took the time to explain everything to me and I am so grateful to her for giving me a fresh financial start so if you have any doubts don’t and go see her if you want to achieve financial freedom!
Heather Helfield
21:24 06 Mar 23
Amazing friendly staff that knows what they are going. They make a difficult situation not so bad. Would give 10 stars if I could.
alie Balan
22:37 25 Feb 23
Very helpful and kind and gave me all the available options before helping me decide which one was best for me. I would definitely recommend Jackie
Alison Rivard
01:01 21 Feb 23
Great experience i was in financial trouble and someone of my friends recommended this company. Cori is a wonderful and welcoming person she did a very good job and came up with a smooth and flexible monthly payment after the reduction. i highly recommend this company. Thank you David sklar and special thanks to Cori.❤️🙏🏻
Jasmine Joseph
22:08 13 Jan 23
Met up with Mr. Jason Sklar to discuss more in person, very thorough and clear. He is very kind and thoughtful, I will be referring anyone with the same situation to David Sklar & Associates.
Ariel Domingo
02:33 29 Dec 22
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