If You Miss Payments on Your Student Loans

Reinstatement after defaulting on a B.C. student loan

Before you can apply for more funding or interest-free status from StudentAid BC, you must ask for reinstatement if you defaulted on your last B.C. student loans and were unable to repay them in full.

You may want your defaulted loans reinstated so you can stop dealing with collection agencies and their demand letters, improve your credit rating, or keep your income tax refunds instead of losing them to pay down the loan debt. Once approved for reinstatement, loans go back into good standing, and you can apply for more financial aid.

Reinstatement is not a right. Your application will only be considered if you meet all the criteria and provide documentation. The conditions for reinstatement vary according to the type of student loans that are in default.

You must submit a signed application for reinstatement and the required documentation to the debt management unit of StudentAid BC.

You can download the reinstatement for defaulted B.C student loan application and instructions [184kb]. Applications can also be obtained from the financial aid office at your school or by contacting StudentAid BC.

If your B.C. student loan has been written off or extinguished as a bad debt, you must submit a reinstatement application to StudentAid BC to be eligible for more financial assistance.

What are the reinstatement after default eligibility criteria?

1. If you defaulted on guaranteed or direct lend B.C. student loans, you must:

  • Not be in default under the Canada student loan program.
  • Make at least six monthly loan payments in a row or pay your loan in full to Revenue Services of British Columbia.
  • Pay all outstanding interest, NSF charges and any additional fees associated with the defaulted B.C. student loan.

To make arrangements to repay a guaranteed or direct lend B.C. student loan in default, contact:

Revenue Services of British Columbia
PO Box 9483
Victoria, BC V8W 9W6
Telephone toll-free: 1-866-361-5050

2. If you have defaulted on risk-sharing B.C. student loans, you must:

  • Not be in default under the Canada student loan program.
  • Get a letter of good standing from the lender or financial institution that holds your risk-sharing B.C. student loan (this is a letter from the lender stating that you are no longer in default).

What documentation is required?

Your application for reinstatement after default for all types of B.C. student loans must include the following:

  • If you were in default on a Canada student loan, a clearance letter from the federal government case management unit of National Student Loans Service Centre proving that you are no longer in default.
  • The original letter from your bank or lender showing that your B.C. student loan account is in good standing.
  • A letter from the registrar of your school, if you are now or will be a full-time post-secondary student in the near future, confirming your registration.
  • The debt management unit of StudentAid BC can answer any questions about reinstatement after default.
Documentation required by StudentAid BC for reinstatement after default is not subject to appeal.