Families of 100 deceased students asked to pay back their student loan debt

Chelse McKee, staff

Students who took out student loans before 2000 will be responsible for paying them back — even if they die, according to documents obtained through the Freedom of Information Act by the Coalition for Student Loan Fairness (CSLF).

The figures have revealed that 100 accounts since 2002-03 have been recruited by the Canada Revenue Agency to pay back their student loans despite the borrower’s death.

“[The statistics] suggest a disregard and indifference towards student loan borrowers and their families as the government appears to be quite zealously collecting on, in many cases, on the [families] of borrowers who’ve died,” says Julian Benedict, a representative from the CSLF.

Since 2002-03, the Canada Revenue Agency has collected just over $14,500 from the deceased.

Beginning in 1995, student loans were funded by the government and the Royal Bank of Canada. That changed in 2000, when the government decided to fund the loans directly.

In the case of death or permanent disability, the borrower was only required to pay the money back if a period of six months had passed since graduation or leaving school. If any incident resulting in fatality or permanent disability occurred within that first six months or before graduation, the loan would be waived.

All student loans approved since 2000 are forgiven when the borrower dies, regardless of how much time has passed.

Benedict said that the risk-shared loans can still potentially affect students and their families. Many students who began university between 1995-2000 could still owe on that loan now if they didn’t graduate until after 2000.

“Those people would also be subject to collection on the risk-share portion on their loans. So it could affect a lot of people now as well.”