Consolidating canadian student loans
If you are out of school for no more than three years and are unable to repay either your Canada-Ontario Integrated Student Loan or Part-Time Canada Student Loan because of low income, you can qualify for interest relief.nbsp;nbsp; Income contingent, the payments are suspended for 6 month blocks, while the government pays the interest for you.
Bankruptcy is still an option, however the Canadian government in 1997 introduced legislation requiring students to be out of school for at least 10 years before they can seek protection under the Bankruptcy And Insolvency Act.
If you are a first time bankrupt, then you are automatically discharged in nine months, but with the new ruling, if this is your second bankruptcy, then they will usually not discharge you for 24 months.
The way a bankruptcy works is that you set up an appointment with a trustee.
According to the government, "if you have a permanent disability that will substantially reduce your earning capacity for your expected lifetime and you are unable to repay your student debts without incurring exceptional financial hardship." The criteria to for medical loan forgiveness so that you can get some or all of your student loans forgiven is strict and many do not qualify: a) you have a permanent disability that is expected to substantially reduce your earning capacity for your lifetime, b) you are experiencing financial hardship, c) you have exhausted the maximum number of months of Interest Relief that you are eligible to receive.
In cases of federal loan forgiveness for people with a disability, the rules are: "you have a permanent disability and you are experiencing exceptional financial hardship repaying your Canada Student Loan(s) due to your disability, you may qualify for the Permanent Disability Benefit (PDB) which allows for the reduction of your loans.