Can you get a student loan with a consumer proposal?

Can you get a student loan with a consumer proposal?

Consumer Proposal: Not eligible for additional Alberta Student Aid funding until borrower pays off all Canada and Alberta student loans.

Can I get OSAP with a consumer proposal?

It is possible to have your application for OSAP approved even after filing a consumer proposal (or bankruptcy). If you remain concerned about your eligibility for OSAP, we recommend contacting your financial aid office directly.

Are student loans Bankruptable in Canada?

In Canada, student loans are subject to special treatment under the Bankruptcy & Insolvency Act. While bankruptcy eliminates most unsecured debt, like credit card debt, there are special laws governing government guaranteed student loan discharge in bankruptcy or consumer proposal (for example OSAP loans).

Can you have a credit card in a consumer proposal?

‘ Put simply, yes you can keep a credit card with a consumer proposal. A consumer proposal will have consequences on your credit report, but it is possible to rebuild your credit after a consumer proposal with a credit card. Typically, a consumer proposal will stay on your credit report between three and six years.

Can you be denied OSAP?

Therefore, it is recommended that a student re-apply for OSAP each academic year. A student who is denied funding one year may qualify for funding in a subsequent year. Likewise, a student who qualifies one year may find that they are denied in a subsequent year.

Can you get a line of credit with a consumer proposal?

Whilst a consumer proposal can be detrimental to your credit rating, having a loan approved during a consumer proposal is not impossible, although it would be much easier after the process has completed.

How long does a consumer proposal stay on your record in Canada?

3 years
A consumer proposal is a legal agreement set up by a licensed insolvency trustee. The trustee creates a proposal for your creditors where they agree to let you pay off a percentage of your debt. Equifax removes a consumer proposal from your credit report 3 years after you pay off all the debts included in the proposal.

Do student loans expire in Canada?

OSAP debt (including provincial and federal student loans) does not expire. It will only be erased when it has been paid off in full. A school’s financial aid office will have information on the process for addressing and clearing a default of an OSAP loan.

When to use student loan debt in consumer proposal?

The rule of thumb is that if you’ve been out of school for 7 years or more, your student loan debt will be forgiven as part of your consumer proposal. However, if your student debt is less than seven years old it won’t be factored into your consumer proposal.

How to apply for a student line of credit in Canada?

Contact your financial institution to find out how to apply for a student line of credit. You usually need to provide proof that you’re either a full-time or part-time student at a recognized Canadian post-secondary institution to be eligible for a student line of credit.

Where can I get a post consumer proposal loan?

Take a look at your options for alternative, private and bad credit lenders and choose a lender that you feel will give you what you deserve and who will take the time to fully understand your situation. Magical Credit is one of the places to start your research on post-consumer proposal loans.

Can a consumer proposal help your credit score?

Although a consumer proposal will definitely harm your credit score, it doesn’t mean that it will be entirely impossible to build it back up. Taking out a loan and paying off your debt is a good first step, as it will allow you the freedom to then rebuild your credit.