How to Pay off Student Loans in BC

Student loans can often feel like a financial burden, but with the right strategies and tools, you can overcome the challenge of paying off your student loans in BC. This comprehensive guide will walk you through the process, provide insights on managing your loans effectively, and introduce you to some legal debt solutions that may apply to your situation.

Understanding the Post-School Repayment Phase

After you’ve completed your academic journey, a 6-month non-repayment period typically kicks in. During this phase, you’re not required to make any payments on your student loans. This grace period allows you to focus on landing a job or adjusting to your new financial responsibilities. However, the moment this period ends, it’s time to start repaying your loans.

Managing Your Student Loans Effectively

Managing student loans can be quite daunting, especially if you’re doing it alone. You may consider delegating this responsibility to a trusted person by giving them power of attorney. This person can handle your student loan transactions, easing your burden and ensuring that nothing falls through the cracks.

Repayment Obligations Based on Provincial or Territorial Residency

Repayment obligations may differ depending on your provincial or territorial residency. For regions like British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, Ontario, Saskatchewan, and the Yukon, student loans are repaid through the National Student Loan Service Centre (NSLSC).

For Alberta, Nova Scotia, and Prince Edward Island, provincial and federal loans are repaid separately. You would make payments on the federal loan through the NSLSC, and payments on the provincial loan through your respective province.

In Quebec, Nunavut, or the Northwest Territories, loan payments are made directly to your province or territory.

Delaying Repayment under Certain Circumstances

In certain circumstances, you may be able to delay repayment. This could be when you’re still a full-time student, a reservist in school or on a Canadian Forces designated operation, or when you need to take a break from your studies due to medical or parental reasons.

Exploring Legal Debt Options: Filing a Consumer Proposal

If your student loans are proving difficult to manage, filing a Consumer Proposal could be an option. A Consumer Proposal is a legal debt solution that can help wipe out bank-funded student loans and both Canada and BC student loans. This action will immediately halt any government actions like seizing your pay or freezing your bank account due to student loans.

Claiming Personal Bankruptcy

Claiming personal bankruptcy is another legal route to explore when grappling with heavy student loans. This option is viable when making partial repayments is challenging or impossible. In BC, private, federal, and provincial student loans can be erased by filing for personal bankruptcy.

The Seven-Year Rule for Government Student Loans

If you have had your government student loans for seven or more years, filing a Consumer Proposal or personal bankruptcy will release you from your repayment obligations. However, if you have been a student within seven years, these student debts will survive and continue to be payable.

Consumer Proposal and Bankruptcy as Potential Solutions

Despite the seven-year rule, a Consumer Proposal or bankruptcy could still be beneficial for dealing with student loans. By extinguishing most debts, you may find it easier to manage and eventually pay off your student loans without undue stress on your finances.

Seeking Professional Advice

Seeking professional advice is a crucial step when navigating the process of paying off your student loans. Meeting with experts in bankruptcy and debt consolidation services can provide you with a clear view of your options and help you develop a robust plan to become debt-free.


Paying off student loans in BC doesn’t have to be a daunting task. By understanding your repayment obligations, managing your loans effectively, and exploring legal debt solutions, you can successfully navigate your way out of student loan debt. Remember, professional advice is invaluable during this process, so don’t hesitate to seek help when you need it.

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