top of page



Declare that everything is under control
and that tomorrow really is a new beginning™.


For most people, getting a student loan is a step closer to making their dream of attending college or university a reality. With the rise in tuition fees and interest rates, students are struggling now more than ever to repay their ever-increasing student debt. D. & A. MacLeod Company Ltd. offers debt counselling that will help students manage their commitments and repay their loans. Managing student debts can be a daunting task, especially when you may not have a steady flow of income. If you are faced with this situation, to resolve your unmanageable debts, a consumer proposal or bankruptcy may be a financial solution to resolving your situation.  Trust our professionals to assess your situation and help you manage your student debt with the right financial strategy suitable for you.


As post-secondary school typically demands full-time commitment towards your studies, it could be difficult for you to take up part-time jobs to support your monthly commitments in addition to the loan amount you need to pay. Students will sometimes end up depending on credit cards to meet everyday expenses. Making minimum payments may seem that you have the situation under control.


However, with high interest rates on credit cards, being able to pay down and repay these debts can be overwhelming or impossible.


To explore practical solutions and ease the stress of loan repayments, call to make an appointment to review your financial situation with the team at D. & A. MacLeod Company Ltd. We have been providing student debt counselling in Ottawa and surrounding areas for over 70 years.

student working in campus computer lab learning about debt options


Before considering how to fund your post-secondary education and applying for a student loan from any bank, organization, or borrowing from family, do your research.  Know the terms and the interest rate on your student loan.Calculate your monthly income, expenses, and plan your finances.

If you are still confused about how to go ahead and make a wise decision, reach out to D. & A. MacLeod Company Ltd. We offer credit counselling and debt management services for students and recent graduates in Ottawa. We will work together with you to reduce your debt burden, help you with better saving methods, and provide you with practical student loan debt repayment plans.

If you’re interested in learning more about managing your expenses as a student, be sure to check out our blog to learn more:

Student Portrait

Paying Back Your OSAP Loan

It’s very common for students to receive a loan through the Ontario Student Assistance Program (OSAP). It offers interest-free loans and the repayment process doesn’t begin until six months after you graduate.

To meet the OSAP criteria, you should:

Be a Canadian citizen, permanent resident or a protected person

Meet the full-time or part-time enrolment requirements at an approved school

Demonstrate financial need

Pass a credit check if you are 22 years of age or older

Not have defaulted on a student loan or declared bankruptcy in the past

When you opt for a loan through OSAP, you are borrowing the money from the governments of Canada and/or Eastern Ontario. You will be required to pay back the loan with any interest on the debt. While you don’t have to pay the interest that adds up when you’re still studying, you will be responsible for paying the interest on your student loans six months after your graduation. It is important to consider starting planning prior to graduation and have a tentative plan in place.

Can Student Debts Ever Be Waived?

Student loans are one of the many financial commitments that people find hard to deal with after graduation. All student loans are subject to be treated under the Bankruptcy and Insolvency Act. Your student loan cannot be discharged unless you file for bankruptcy at least seven years after being enrolled in your full-time course. This is possible only if you take a government-guaranteed student loan. This provision is set out in Section 178, of the Bankruptcy and Insolvency Act in Canada.

Filing for bankruptcy, if required to provide a new beginning, can help you clear all your other debts and make the process of repaying the student loan in many cases manageable. Keep in mind that even if you declare bankruptcy, you still have to pay your student loan debts not discharged under Section 178 (1) (g) (g.1) of the Bankruptcy and Insolvency Act.  

If your student loans are private bank loans such as student line of credit or student credit card debts, then they are eligible for automatic discharge under the Bankruptcy and Insolvency Act.

Reading a dossier

Bankruptcy And Student Loans in Ottawa

If you’re struggling to repay your student loans, you may be considering personal bankruptcy to discharge your debts. This means that you’re no longer legally obligated to repay them. However, there are some exceptions to this, including student loans.

When are student loans discharged in bankruptcy?

Student loans are only discharged in bankruptcy if it has been at least seven years since you ceased to be a student. This means that you must have graduated or dropped out of school at least seven years prior to filing a bankruptcy or making a consumer proposal to discharge any student loan debts.

If it has been less than seven years since you ceased to be a student, it may be possible to make an application to the Court requesting the Court make an order that after 5 years, you cease to be a full or part-time student and act in good faith and will continue to experience financial difficulties to be unable t to pay off the student loan.


The options above are available for only government-approved student loans. Private student loans don’t fall under the same regulations and qualify for automatic discharge through bankruptcy, no matter how old the loan is.  


What happens to student loan debt after bankruptcy?

Once you’re discharged from bankruptcy, you’ll no longer be legally obligated to repay your student loans. However, your student loan debt will still appear on your credit report for up to seven years after you’re discharged providing you are a first time bankrupt and have not been bankrupt on a previous occasion.

Alternatives to Bankruptcy for Student Loan Debt

If you’re considering bankruptcy to discharge your student loan debt, there are a few other options that you may want to consider first. These options include:

  • Student loan repayment assistance programs. The federal and Ontario governments offer several student loan repayment assistance programs, such as the Repayment Assistance Plan (RAP). These programs can help you reduce your monthly payments or even forgive some of your debt.


  • Consumer proposals. A consumer proposal is a legal process that allows you to negotiate a settlement with your creditors. This settlement may involve reducing the amount of debt you owe or extending the repayment period.


  • Credit counselling. A licensed insolvency trustee or counsellor at D. & A. MacLeod Company Ltd. can help you develop a budget and plan to manage your debt. We can also negotiate with your creditors on your behalf.


Even if your government student loans are less than seven years old, bankruptcy may enable you to discharge credit card debt and other personal loans, making paying your student loan easier. If you’re struggling to repay your student loans, talk to us. We can help you explore your options and choose the best solution for your situation.


If you’re worried that your spending habits are negatively affecting your life, unable to cope with all of your obligations including student loan debt, credit counselling from D. & A. MacLeod Company Ltd. may assist to help develop an plan to relieve the stress and find ways to manage your debts. If you have other debts such as credit card debts, lines of credit, or payday loans, which you are unable to pay and struggling to meet even the minimum payments, a consumer proposal or bankruptcy may  be the start of a new beginning.


We can assist you in reviewing your options and suggesting a solution to help you focus on repaying your student loan debt with a more manageable budget.

 Our licensed insolvency trustees are always ready to review possible options and provide you with transparent suggestions to allow you to make an informed decision as to resolving your student loan and existing the debt.  


Give us a call today for personalized guidance. We have offices in Ottawa, Kingston, Brockville, CornwallPembroke, Smiths Falls and Kanata, as well as virtual meetings for individuals across Ontario.


Financial expert showing documents to the clients


Over 70 Years' Experience = Solutions = Results

bottom of page