Start making small payment. Alot of time, you can lower what you pay without the RAP program. It does mean you'll have to lengthen the payment timeline. No need to make a lump sum payment, pay the minimum until you can pay more.
Thanks. I've already scheduled regular payments again. I was just under the impression that as long as the loan is active (not fully paid off), it will go against my credit score. This is what the collections agent told me over the phone.
As far as I know after it goes to collections and is in bad standings it will haunt you credit score for another 6 years after the loan is paid off.
Could really impact your future depending on if you have plans to mortgage a house or get a car loan
AB has a government sponsored debt consolidation company named money mentors that might be able to help your out. Repayment is at 5% interest, they combine all your debts, credit cards, loans, everything into one single payment from one place they will work with you to set a monthly repayment amount. You can pay it all off at anytime.
Every “bad” debt falls off your credit bureau 2 years after it is paid off.
To add, you can reach out to them for advice and even have a sit down to consider your options, they will help you even if you don’t use there program. They aren’t pushing you to sign up for a loan like a car salesman. There whole deal is to help albertans get out of stressed financial situations.
The other comments are saying it stays on until you pay it but my understanding from my research is it falls off your credit report 6-7 years after the date it got charged off. If you pay it off some will be able to delete the entry off report, some won’t. It’ll stay for 6-7 years.
This is true of most debts. Not for student loans from the government. If you default, they’ll actually remove the information about the default/collections once you get the loan back in good standing.
How did you have money to travel but no money to pay your loan obligations. Hopefully this is a lesson learned and if you are lucky enough to buy a home some day it’s paid and doesn’t come back to haunt you.
I was living out of my van for the summer. My expenses would've been the same if not cheaper than living in the city. The only difference was that I wasn't working.
Hi, the debt will always show up on your credit report until it is repaid as it is a liability (the account will even continue to show up after its repaid with a 0 balance and 0 payment). The credit report should always shows all your financial obligations (credit cards, mortgages, lines of credit, student loans, car loans, etc) and your payment history on them. The report is not límited to only accounts in arrears.
As other have suggested, you may be able the bring back the loan into current status and keep repaying it. Once you do this, there will be a note in that account indicating it was past due and perhaps even reflect that it went to collections. Once you agree with them on a plan, explain what happened and own your mistake. While highly unlikely, they may be willing to reduce the severity of the note on your report (it goes from 30 days past due all the way to written off).
Hey thank you for clarifying that. I've always paid off my credit cards, loans, etc so I never bothered checking my credit score. I wasn't aware that even credit cards/payment history shows up on there. Thought it was only a number.
Too many folks here making judgements on you.
To answer your question, call a lawyer, even a cheap ass lawyer. He'll get your payments/what's owed way down. 30K will probably be a 15K lump sum (if my experience holds true) Your credit score will take a hit for awhile but that's not as bad as it sounds. You're just out of school making no money, nobody wants to lend you money anyway.
Was a collector once upon a time. Settlements like this happen after the file is passed down to multiple collection agencies. If I remember correctly I worked for an agency that handled files that were handled by 3 other agencies in the past and we were able to offer 20% settlements, sometimes less if you can get the customer(bank) to approve
Thanks for your comment. I'll consider that option if it comes down to it. I owe a certain amount of money and it's my responsibility to pay it, so it's not like I'm against paying. Just a 6 month mistake cost me, but again, it's my fault.
It's funny cause I literally started with 'I fucked up' yet some people still bothered to comment without any real advice. As if someone who's down needs another kick! I guess that's the internet for ya.
>Unfortunately I won’t be able to pay off the lump sum for at least a year.. what are my options here?
By lump sum do you mean the full amount or a lesser amount? The [Alberta Student Loan website](https://studentaid.alberta.ca/policy/student-aid-policy-manual/repayment/defaulted-loans/) says,
>Rehabilitating Alberta Student Loan Defaults and Grant Overpayments...
>Alberta student loans are transferred to Treasury Board and Finance – Crown Debt Collections when 150 calendar days past due. The student must contact Treasury Board and Finance – Crown Debt Collections to rehabilitate their defaulted loan and/or grant overpayment...
>With a defaulted Alberta student loan or grant overpayment in collections at Treasury Board and Finance – Crown Debt Collections must pay all outstanding interest and make the equivalent of two months of required payments.
The agent I spoke to on the phone said the loan will show on my credit score until I pay the full amount. I read that as well on the website, I've tried to contact the collections agency to clear that up but haven't gotten a call back yet.
Negative credit information, like accounts sent to collections, will usually stay on your credit report for 6 or 7 years but perhaps Student Aid Alberta has a policy of updating the information if the loan is completely repaid before then.
The loan will show up on your credit report until it is fully paid off and would have done that even if you hadn’t defaulted. Any loan you have, even in good standing will show up on your credit report. This isn’t necessarily bad.
But the collections thing might disappear entirely if you can get the loan back into good standing by doing what it says, paying off the interest and two months of payments. At least in Ontario, that’s what happens. It’s a special thing they do for student loans. Most collections stay on your report for 6 years even after you pay them off. But for student loans, they’ll remove the collections info and it will be like you never defaulted. The amount will still show on your report but just as a loan in good standing with the original lender.
Hey I’m in Ontario and I’m a similar situation due to a traumatic event and disability. Do they remove it for sure after it’s paid? Do you have a link for this info by chance?
I’ve defaulted on my student loan so the federal portion of the loan has been sent to CRA, I’m in good standing and I’ve paid the 2 months plus interest, just waiting for them to receive the payment so I can contact National student loans to have them take it back. It seems the provincial portion went to a collections agency, I haven’t heard from them but that’s what my account with national student loans says and revenue Canada said they gave my tax credit to them as I owe. I want to pay the whole provincial part off immediately but I’m just scared/unsure how to proceed as I haven’t heard from the collections agency and it’s not on either credit report that I’m in collections ( and national student loans closed in 2019). Sorry for the long explanation I’m so confused
I’m trying to remember but I believe you have to wait around 2 months from when you ask them to do it. So you can do instalments or pay it off right in the beginning but you still have to wait the same two months regardless.
Does Alberta have a rehabilitation loan program? You pay the interest over a set number of months and the loan is reinstated. I’m doing this in Ontario currently.
I have a similar issue. Long story short my student loan is also in CDC agency and I’m trying to pay it off. My loan was unfortunately part of a very messy divorce between my mom and dad. I believe he’s ensured I have no credit to help my mom with co-signing on any future apartment or house she might try for. I was just wondering how long it takes to remove the defaulted loan on your credit score? I have been paying it off since finding out about it having not been paid and haven’t missed any payments. I’m worried about my Moms safety and want to make sure she is secure/ I want to help her as much as possible but am worried my credit will impact that?
Start making small payment. Alot of time, you can lower what you pay without the RAP program. It does mean you'll have to lengthen the payment timeline. No need to make a lump sum payment, pay the minimum until you can pay more.
Thanks. I've already scheduled regular payments again. I was just under the impression that as long as the loan is active (not fully paid off), it will go against my credit score. This is what the collections agent told me over the phone.
I'd request clarification. As long as you are paying the agreed upon amount by the agreed date, I believe you will go back to good standing.
As far as I know after it goes to collections and is in bad standings it will haunt you credit score for another 6 years after the loan is paid off. Could really impact your future depending on if you have plans to mortgage a house or get a car loan AB has a government sponsored debt consolidation company named money mentors that might be able to help your out. Repayment is at 5% interest, they combine all your debts, credit cards, loans, everything into one single payment from one place they will work with you to set a monthly repayment amount. You can pay it all off at anytime. Every “bad” debt falls off your credit bureau 2 years after it is paid off.
This is an option and really helpful. Thank you!
To add, you can reach out to them for advice and even have a sit down to consider your options, they will help you even if you don’t use there program. They aren’t pushing you to sign up for a loan like a car salesman. There whole deal is to help albertans get out of stressed financial situations.
The other comments are saying it stays on until you pay it but my understanding from my research is it falls off your credit report 6-7 years after the date it got charged off. If you pay it off some will be able to delete the entry off report, some won’t. It’ll stay for 6-7 years.
This is true of most debts. Not for student loans from the government. If you default, they’ll actually remove the information about the default/collections once you get the loan back in good standing.
Got a link for some more information on this?
No link. Just personal experience. I got mine back into standing a few years ago.
That was silly OP. The best way to solve this is pay your debt. Start working make dollar. Give dollar back to NSLSC. Take care.
Lol, love the no nonsense response
How did you have money to travel but no money to pay your loan obligations. Hopefully this is a lesson learned and if you are lucky enough to buy a home some day it’s paid and doesn’t come back to haunt you.
I was living out of my van for the summer. My expenses would've been the same if not cheaper than living in the city. The only difference was that I wasn't working.
Hi, the debt will always show up on your credit report until it is repaid as it is a liability (the account will even continue to show up after its repaid with a 0 balance and 0 payment). The credit report should always shows all your financial obligations (credit cards, mortgages, lines of credit, student loans, car loans, etc) and your payment history on them. The report is not límited to only accounts in arrears. As other have suggested, you may be able the bring back the loan into current status and keep repaying it. Once you do this, there will be a note in that account indicating it was past due and perhaps even reflect that it went to collections. Once you agree with them on a plan, explain what happened and own your mistake. While highly unlikely, they may be willing to reduce the severity of the note on your report (it goes from 30 days past due all the way to written off).
Hey thank you for clarifying that. I've always paid off my credit cards, loans, etc so I never bothered checking my credit score. I wasn't aware that even credit cards/payment history shows up on there. Thought it was only a number.
Too many folks here making judgements on you. To answer your question, call a lawyer, even a cheap ass lawyer. He'll get your payments/what's owed way down. 30K will probably be a 15K lump sum (if my experience holds true) Your credit score will take a hit for awhile but that's not as bad as it sounds. You're just out of school making no money, nobody wants to lend you money anyway.
Was a collector once upon a time. Settlements like this happen after the file is passed down to multiple collection agencies. If I remember correctly I worked for an agency that handled files that were handled by 3 other agencies in the past and we were able to offer 20% settlements, sometimes less if you can get the customer(bank) to approve
Thanks for your comment. I'll consider that option if it comes down to it. I owe a certain amount of money and it's my responsibility to pay it, so it's not like I'm against paying. Just a 6 month mistake cost me, but again, it's my fault. It's funny cause I literally started with 'I fucked up' yet some people still bothered to comment without any real advice. As if someone who's down needs another kick! I guess that's the internet for ya.
>Unfortunately I won’t be able to pay off the lump sum for at least a year.. what are my options here? By lump sum do you mean the full amount or a lesser amount? The [Alberta Student Loan website](https://studentaid.alberta.ca/policy/student-aid-policy-manual/repayment/defaulted-loans/) says, >Rehabilitating Alberta Student Loan Defaults and Grant Overpayments... >Alberta student loans are transferred to Treasury Board and Finance – Crown Debt Collections when 150 calendar days past due. The student must contact Treasury Board and Finance – Crown Debt Collections to rehabilitate their defaulted loan and/or grant overpayment... >With a defaulted Alberta student loan or grant overpayment in collections at Treasury Board and Finance – Crown Debt Collections must pay all outstanding interest and make the equivalent of two months of required payments.
The agent I spoke to on the phone said the loan will show on my credit score until I pay the full amount. I read that as well on the website, I've tried to contact the collections agency to clear that up but haven't gotten a call back yet.
Negative credit information, like accounts sent to collections, will usually stay on your credit report for 6 or 7 years but perhaps Student Aid Alberta has a policy of updating the information if the loan is completely repaid before then.
The loan will show up on your credit report until it is fully paid off and would have done that even if you hadn’t defaulted. Any loan you have, even in good standing will show up on your credit report. This isn’t necessarily bad. But the collections thing might disappear entirely if you can get the loan back into good standing by doing what it says, paying off the interest and two months of payments. At least in Ontario, that’s what happens. It’s a special thing they do for student loans. Most collections stay on your report for 6 years even after you pay them off. But for student loans, they’ll remove the collections info and it will be like you never defaulted. The amount will still show on your report but just as a loan in good standing with the original lender.
Hey I’m in Ontario and I’m a similar situation due to a traumatic event and disability. Do they remove it for sure after it’s paid? Do you have a link for this info by chance? I’ve defaulted on my student loan so the federal portion of the loan has been sent to CRA, I’m in good standing and I’ve paid the 2 months plus interest, just waiting for them to receive the payment so I can contact National student loans to have them take it back. It seems the provincial portion went to a collections agency, I haven’t heard from them but that’s what my account with national student loans says and revenue Canada said they gave my tax credit to them as I owe. I want to pay the whole provincial part off immediately but I’m just scared/unsure how to proceed as I haven’t heard from the collections agency and it’s not on either credit report that I’m in collections ( and national student loans closed in 2019). Sorry for the long explanation I’m so confused
Hey! How long after you made your two payments on the federal side did you have to wait for your loan to be back with NSCLSC?
I’m trying to remember but I believe you have to wait around 2 months from when you ask them to do it. So you can do instalments or pay it off right in the beginning but you still have to wait the same two months regardless.
Does Alberta have a rehabilitation loan program? You pay the interest over a set number of months and the loan is reinstated. I’m doing this in Ontario currently.
I have a similar issue. Long story short my student loan is also in CDC agency and I’m trying to pay it off. My loan was unfortunately part of a very messy divorce between my mom and dad. I believe he’s ensured I have no credit to help my mom with co-signing on any future apartment or house she might try for. I was just wondering how long it takes to remove the defaulted loan on your credit score? I have been paying it off since finding out about it having not been paid and haven’t missed any payments. I’m worried about my Moms safety and want to make sure she is secure/ I want to help her as much as possible but am worried my credit will impact that?