Funding Restrictions
You must meet general eligibility requirements to receive student funding, however, there are a number of other factors that may also affect your eligibility. You may have a funding restriction if you:
Credit Check
When you apply for funding, you will undergo a credit check if:
- you are a first-time applicant and
- you are at least 22 years old
The credit check looks at your credit history over the three previous years. If during that time you have had three separate debts of $1,000 or more reported to the credit bureau as being more than 90 days overdue, you will not be eligible to receive funding.
If your application fails the credit check, you will be mailed information on how to appeal this decision. Your appeal must explain the reason your payments are overdue such as:
- circumstances beyond your control, or
- unexpected expenses
Defaulting on Loan Payments
When you default on your student loan it means you have not made loan repayments according to your formal financial agreement.
If you have defaulted on previous Alberta student loans, you will not be eligible for any further Alberta student loans unless you:
- make the required outstanding loan repayments
- bring your interest payments up-to-date
If you have defaulted on previous Canada student loans, you will not be eligible for any further Canada student loans unless you:
- provide Students Finance with a letter from the Canada Student Loan Program and/or your lending institution authorizing clearance for further funding
Bankruptcy
Bankruptcy is a legal declaration that you are unable to pay your debts. Bankruptcy affects your eligibility for student loans.
Important Information About Bankruptcy
Under federal bankruptcy legislation, the waiting period before a student loan debt can be discharged from bankruptcy is seven (7) years from the last time you attended post-secondary school (and, in the case of exceptional financial hardship, five (5) years).
This means that you must continue to make payments on your government student loans because they are excluded from your estate. After at least five (5) years have passed from your study end date, you are then eligible to apply to the courts for discharge. These timelines apply only if your loans were discharged from bankruptcy on or after July 7, 2008.
Important differences in bankruptcy policy between the Alberta and Canada Student Loan programs
Alberta Student Loan Program
If you have filed or intend to file for bankruptcy while you are a student, any Alberta student funding that you may otherwise be eligible to receive will be cancelled. You must then either pay off your student loans in full or receive a court-ordered discharge from student loans and wait three (3) years before you are eligible to apply again for student funding.
Canada Student Loan Program
- If you have already received Canada student loans and have filed or intend to file for bankruptcy and you are continuing your studies, you may:
- receive further Canada student loans for a maximum of three (3) years, to complete your current program of study, and
- retain interest-free status for your Canada student loans while in study
- If you have already received Canada student loans and have filed or intend to file for bankruptcy and you have been out of school for more than six months, then:
- you must either pay off your Canada student loans in full or receive a court-ordered discharge from student loans and wait three (3) years before you are eligible to apply for further federal financial assistance
Suspension of Student Funding Eligibility
Under rare circumstances, some students have their eligibility for funding suspended as a result of an investigation. If your eligibility for student funding has been suspended in this way, you may file an appeal of your suspension  .
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