Students

Osap debt written off after 6 years?

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[OP]
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Mar 12, 2004
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Brampton

Osap debt written off after 6 years?

In Wednesdays Metro newspaper, there was a small article on the government having to write off a ton of bad student loans. It stated that legally the loan has to be written off after 6 years. Apparently you cant legally go after a loan if it passes the 6 year mark.

Is this true? Can you just not pay for 6 years and have it written off?
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Deal Addict
Nov 15, 2013
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I've never heard anything about the 6 year thing but I know you can not absolve OSAP loans by declaring bankruptcy and that they can and will take it off your paycheque if you stop paying them.
Deal Guru
May 29, 2006
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pay your debts or dont borrow. life isnt a bunch of handouts.
[OP]
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Mar 12, 2004
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Brampton
http://www.metronews.ca/news/canada/201 ... loans.html

Liberals move to write off $178 million in unpaid student debt

Federal officials dismiss debts that they won't be able to collect on, either because bankruptcy was filed, the debt has passed a six-year limit, or the debtor can’t be found.
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Mar 23, 2011
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It's not like the government needs the money :rolleyes:
Alex
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Oct 26, 2003
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squall458 wrote: In Wednesdays Metro newspaper, there was a small article on the government having to write off a ton of bad student loans. It stated that legally the loan has to be written off after 6 years. Apparently you cant legally go after a loan if it passes the 6 year mark.

Is this true? Can you just not pay for 6 years and have it written off?
i don't believe such rule exists, but maybe for accounting purpose they are written off, but still in effect. well, maybe ask Syne who is the authority on OSAP in this forum.
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Mar 18, 2005
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Niagara Falls
squall458 wrote: In Wednesdays Metro newspaper, there was a small article on the government having to write off a ton of bad student loans. It stated that legally the loan has to be written off after 6 years. Apparently you cant legally go after a loan if it passes the 6 year mark.

Is this true? Can you just not pay for 6 years and have it written off?
Well that depends on how well they do their job. If you fail to pay they should be garnishing your wages and taking your TAX return.

For some reason they decided not to do that for a while. I know someone who just stopped paying any they never came after him.

He hasn't had any issues purchasing vehicles or a house.

Guess I'm the sucker for continuing to pay back my student loans.
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Jul 27, 2006
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This is beyond ridiculous. I paid off every last penny and there are going to be some people who get off a free ride again.

I assume there are some legit cases like bankruptcy and maybe the person has passed on but people escaping their debts should be found and have some form of punishment especially if we know they have a known address in Canada and are still filing tax returns.
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Nov 15, 2013
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divx wrote: i don't believe such rule exists, but maybe for accounting purpose they are written off, but still in effect. well, maybe ask Syne who is the authority on OSAP in this forum.
I think you're correct that it's an accounting measure. I find it hard to believe they'd legally have to forgive debt after 6 years, seems more likely they'd just have to assume it'll never be collected.
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Oct 13, 2009
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Evil Baby wrote:

He hasn't had any issues purchasing vehicles or a house.

how is that possible? It'd be on his credit report as delinquent. Maybe he had someone to cosign on the loans?
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Mar 18, 2005
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HIs family is out East, so its just him and his wife. I don't think she has stellar credit either. I mean, he stopped paying his student loans a long time ago so perhaps its already fallen off his credit report although I thought it always stayed on there.
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Jan 22, 2003
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Austin/Markham
I "think" this is true for the Federal part of the loan. The OSAP loan has a Federal and Provincial part (even though the O in OSAP stands for Ontario), the Harris gov made the provincial part impossible to write off, even after 10+ years but the Federal portion is different.

So in theory folks' Federal portion has been erased but the provincial portion still exists.
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