paying off collection agencies for a student loan
Question: I’ve recently received a letter requesting payment on my past due student loan.
I’ve gone to the bank for assistance but was denied. I don’t want to file for bankruptcy. What are my options?
Answer: You have three options. First, you could simply make payments on your own. If you can’t pay the full amount, you could pay them whatever you can afford. It is possible that the student loan lender will continue to pursue you.
You could attempt a debt management plan through a credit counsellor. Whether or not this will be successful will depend on the amount of money you have to contribute to the plan each month.
Finally, you could offer a consumer proposal, the success of which will depend again on the funds you have to offer each month. If these options fail, a bankruptcy may be your final option.