What Happens If You Don't Pay
Life happens and paying your loans might be a challenge. You might still be looking for a job, or lose the job you had. Or maybe you just didn’t realize your Grace Period ended.
Whatever the reason, not making your student loan payments has serious consequences. Your credit score can suffer making it difficult to get a mortgage, car loan, or line of credit in the future. A poor credit score will follow you for 7 years, putting you in the ‘risk’ category for future financial loans you may want to apply for. Having a poor credit score could restrict you from getting the best interest rates available, making a large financial purchase, or even getting a job!
If you are having difficulty paying your student loans, you have options! Apply for the Repayment Assistance Plan, customize your payments terms, or make interest only payments. Whatever you do, do not ignore your student loans completely.
If you do not make payments, the Alberta Student Aid Service Centre will try to contact you by phone and by email. Don’t be afraid to talk to us. There are programs available to help you get back on track and we are here to help!
Alberta Student Aid Service Centre
1-855-606-2096 | Option 3
When your loan is 150 days overdue, it is transferred to Treasury Board and Finance – Crown Debt Collections. They will take action that may include:
- Reporting to a credit agency
- Sending your debt to a private collection agency
- Taking legal action
- Taking your income tax refund and/or GST refunds
Even if you default on your loan, you can work with Treasury Board and Finance - Crown Debt Collections and the private collection agencies to come up with a repayment plan that works. It’s never too late!
Learn more at: Loan Repayment Basics and Defaulted Loans in the Student Aid Policy manual.