Personal Finance

Old Student Loan – Credit Score Impact and Repayment

  • Last Updated:
  • Mar 4th, 2020 12:43 am
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Mar 3, 2020
1 posts

Old Student Loan – Credit Score Impact and Repayment

Here’s my deal, had a student loan I stopped paying way way way back, like 2006 or so, went into collections, ended up filing a consumer proposal, which also failed and deemed abandoned (2012-2013ish).

In subsequent years, I ended up getting back on track, started repaying my OSAP loan (CRA portion only, more about that in a moment). Sorted out all my other debts over the past few years (working on it since 2013). Now, I finally have a good credit rating, score is approaching 800 and being approved for new credit cards and credit from the banks with good rates.

Sooooo, was speaking with the CRA today about paying off the remaining debit (which I thought was all I owed for some reason), that’s when they told me that I still have a portion with Ontario, which has not been paid at all, my questions are below….

  • If I call to inquire, will that result in it being re-aged on my credit report? Seeing as I would be acknowledging the debt ?
  • Once I file my taxes this year (haven’t done so in a few years) and my refund (if any) is clawed back as payment for the defaulted outstanding portion of the loan (Will they do that for the Ontario-only piece?), will that go to a collection agent or whomever it’s with now and reappear as a negative item on my Credit report? Again, re-aged as a payment was made?

I want to resume payment or pay it off entirely, but I don’t want to destroy the work I’ve done to recover these past few years. Anyone have any insight as to what the best approach would be here?
For the record, all I’m trying to avoid is taking a hit on my credit report by paying and/or acknowledging the debit. My intent is to resume payments as I should have ages ago.
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