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Student Loan Debt Settlement

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Best Choices For Student Debt Relief

Are you burdened by student debt?


We can explain what steps you can take if your student loans are breaking the bank.

FYI: You could repay up to 70% less than what you owe.  



A Licensed Insolvency Trustee (LIT) will work with you to put together a plan that allows you to pay your student loans for less and at a rate you can afford.

Let’s talk about the top types of student debt relief so that you know what your options could look like.


Your Resources

With a changing economy and fewer jobs on the market, many people with an education are having difficulty finding work. Of those that are able to find work in their field of study, many will spend a number of years earning an entry-level salary. As a result, thousands of Canadians are struggling to make their student loan payments.

When it comes to debt, student loans follow a specific set of laws separate from other unsecured debts such as personal lines of credit or credit cards.

Our #1 tip: Know what your options are; it could save you thousands of dollars.

  • Support Through Student Loan Offices
  • Resolving Student Debt Through Consumer Proposals
  • Resolving Student Debt Through Bankruptcy
  • Tips For New Graduates
  • Get Expert Advice Today!

“The 7-Year Rule.”

The web is a good starting point for finding out what your options are when it comes to student loan debt. There is one law that will be a deciding factor to narrow down which options are best for you. From there, a LIT will be able to tailor a plan to your specific needs.

Not all debt repayment plans are created equal.

In Canada, a consumer proposal or bankruptcy will not extinguish your student loan debt unless 7 years have passed from the time you last attended school (part-time or full-time) to the day you file. If it has been less than 7 years, you still have options for payment plans and extended grace periods, etc.

Has it been 7 years or longer since you were in school?

  • Yes? You are likely eligible to file for a consumer proposal or bankruptcy.
  • No? You may still file a consumer proposal or bankruptcy for any other debt, but your student loan debt would survive. This can make sense if your student loan debt is only a small portion of your overall debt.

Support Through Student Loan Offices

Because starting out as a new graduate in the workforce can be financially challenging, student loan organizations may offer many resources and types of debt repayment. Common types of student debt assistance could include:

  • A period of interest-only payments.
  • Reduction in monthly payments.
  • Longer terms for loan repayment.
  • Financial hardship aid – these are somewhat exceptional circumstances, and you must fall within particular criteria to be approved – the amount of your loan would be decreased and your interest rate could either be reduced or eliminated for a period of 10 years.

Keep in mind that most of these payment plans will extend the term of your loan which will lower monthly payments, but ultimately keep you in debt for a more extended period and may cost you more in in the long run.

In light of this, many people who are nearing the 7-year window will wait until they are eligible for other options, such as a consumer proposal.

Resolve Student Debt Through A Consumer Proposal (7+ years out of school)

If you are behind on student debt, are unable to make your regular payments, or it would take an unreasonable amount of time to pay it off, a consumer proposal could save you money and allow you to breathe a lot easier.

Here’s how: 

  • In most cases, you pay less than your total debt.
  • Absolutely no interest
  • Your proposal is based on your budget, what you can afford, and government guidelines
  • You are protected from creditor action
  • One payment for all of your unsecured debts, not just student loans,
  • Maximum payment term over 5 years, but you may complete it early
  • You keep all your assets

At Goth & Company, a LIT will provide details of all options so you can determine if a consumer proposal is right for you. If you are eligible, you and your LIT will put together a proposal that makes sense for your budget. Any actual negotiations with creditors will be handled by your LIT.

Once you have filed your consumer proposal, creditors have 45 days to vote either for or against the terms of your proposal. The outcome is based on the majority vote. Consumer proposals are legally binding on all creditors, meaning that even if a lender votes against your proposal, they will still have to abide by the majority vote. While the outcome may seem somewhat up to chance, the proposals filed by our LITs have a 98%+ acceptance rate. Once accepted, you are on your way to becoming debt-free.

Can I File A Consumer Proposal For Other Unsecured Debts? (<7 years out of school)

If you have other significant debts, you can file for a consumer proposal at any time, regardless of where you are at with your student loans.

The key difference – if it has been less than 7 years since you were in school, your student loan debts will not be extinguished by your proposal. But, a consumer proposal may still be helpful for your student debt:

  • All student loan collections will stop for the duration of your proposal, but you can make payments at any time.
  • You will be under less financial burden by reducing other debts, making it easier to pay off your student loans.
  • You can use this time to catch up, make more money, maybe even get a raise and get the upper hand on your student loans.

Resolving Student Debt Through Bankruptcy (7+ years out of school)

Bankruptcy might offer a better alternative in some cases. Maybe you want to clear your debts quickly? Perhaps you are just ready to start over? Every case is different.

“The 7-year Rule” also applies in bankruptcy. As such, student loans are only extinguished along with other unsecured debts, if you’ve been out of school for more than 7 years as of the date of filing, or starting, your bankruptcy.


One of our professional team can sit down with you and go over the options to allow you to make the decision of what choice is best for you.

Tips For New Graduates (<7 Years out of school)

  • If you are approaching the 7th year being out of school, you may want to wait until you are able to have your student loan debt extinguished with a consumer proposal or bankruptcy.
  • You can file a regular consumer proposal at any time for debts such as credit cards etc. – it may actually make it easier to pay off your student debt.
  • If you are in severe financial trouble, you may qualify for financial hardship provisions with your student loans, which will significantly reduce both your interest and monthly payments.

Which one is right for you?

That depends.

At Goth & Company, we know that every case is unique and almost always requires a unique strategy.

Because we know you are already struggling financially, your first consultation with a Licensed Insolvency Trustee is always free, and you are never under any obligation.

Get Professional Advice Today!

Consult a professional, and you may save thousands of dollars.

By making informed decisions about your finances, you can rest a whole lot easier.

Our LITs are an excellent resource for getting your questions answered, connecting you with the right people for your situation, and resolving your debt once and for all. Navigating your finances, options, and the legal system can be complicated. We can help simplify the process.

At Goth & Company, we strive to do everything we can to ensure that you:

  • Save money
  • Get answers
  • Get results

Call 1-780-435-5110 today – don’t wait!