Dealing with debt

Student loan debt

Dealing with student loan debt

Are you having trouble repaying your student loan debt?

Student loans are one of the biggest debt challenges Canadians face. As tuition fees and living expenses continue to rise, more and more Canadians are financing their post-secondary education.

Did you know that almost half of post-secondary students will take on student loan debt? Paying it off while navigating affordability challenges, like housing, grocery bills, transportation costs, is very difficult.

What does the student debt burden look like in Canada?


of post-secondary graduates
have student loan debt.


is the average balance
at graduation.

3 out of 4

rely solely on
government-sponsored debt.

Source: Statistics Canada

student debt

4 signs that your student debt is unsustainable

  • You owe student debt 10 years after graduating;
  • You’re falling behind or missing payments;
  • You’re relying on credit to get by;
  • You’re putting off important milestones.

What are your options for managing student loan debt?

Repayment Assistance Plan (RAP)

If you qualify, the RAP can help reduce your payments. Depending on your income, you may be exempt from payments that exceed your income by 20 per cent or any payment at all.  
Learn more about the Repayment Assistance Plan here.

Revision of Terms

By revising the terms of your loan agreements, you can extend the amount of time it takes to pay off your student loans by up to 15 years, making your monthly payments smaller.  
Learn more about Revision of Terms here.

Filing a Consumer Proposal

If you have been out of school for at least seven years, you can include your student loan debt in a consumer proposal, which can reduce your total unsecured debt by up to 80 per cent.  
Learn more about consumer proposals here. 

Filing for Bankruptcy

If you are unable to repay your debts, you may qualify for bankruptcy, which can eliminate all your unsecured debt, including your student loan debt, if you have been out of school for at least seven years.
Learn more about bankruptcy here.

How BDO can help

Student loan debt can be intimidating and stressful. Our debt professionals provide sound advice on a path forward so you don’t have to face your debt alone.

A BDO Licensed Insolvency Trustee is always available to discuss your debt relief options free of charge and without any obligation on your behalf.