September 16, 2014
Since April 1, 2014, the National Student Loans Service Centre (NSLSC) has been handling insolvency accounts, such as bankruptcies, consumer proposals and consolidation orders, under the Orderly Payment of Debts Program for non-defaulted Canada Student Loans.
New responsibilities include the following activities for loans currently held at the NSLSC:
- submitting proof of claims and statement of accounts;
- voting and negotiating terms on consumer proposals; and
- assisting in the response to Notice of Motions.
This change aligns with current activities that the NSLSC already performs for borrowers with Direct and Integrated Loans who have been granted a stay of proceedings under the Bankruptcy and Insolvency Act, including:
- accepting interest-only payments directly from borrowers;
- applying trustee-authorized payments to loan principal and/or interest;
- processing Repayment Assistance Plan (RAP) applications; affordable payments; and
- notifying borrowers of their loan repayment obligations following a trustee discharge when applicable.
To avoid processing delays, please mail insolvency notifications for student loans to:
National Student Loans Service Centre
P.O. Box 4030
Mississauga ON L5A 4M4
The NSLSC has created a dedicated toll-free number to answer calls from trustees related to non-defaulted Canada Student Loans in an insolvency account. NSLSC specialists can be reached toll-free at 1-855-783-1760 from Monday to Friday between 9:00 a.m. and 5:00 p.m. EST.
The Canada Revenue Agency's London Tax Services Office will continue to manage defaulted Canada Student Loan insolvency accounts and will forward all applicable insolvency notifications to the NSLSC. For enquiries on any defaulted Canada Student Loans, continue forwarding any questions to your current contact at the London Tax Services Office.
This operational change has no impact on loans currently held at a financial institution and, as such, all insolvency-related documents should continue to be sent to the appropriate financial institution.