The University of Ottawa campus is shown on Wednesday, April 22, 2020 in Ottawa. Canada’s auditor general is calling for the federal government to step up its recovery of outstanding student loans to keep taxpayers from being left on the hook. THE CANADIAN PRESS/Adrian Wyld

Auditor finds $2.4B in unpaid student loans, calls for stronger recovery efforts

The Canada Revenue Agency was found to have its hands tied in recovering outstanding loans

Canada’s auditor general is calling for the federal government to step up its recovery of outstanding student loans to keep taxpayers from being left on the hook.

In a report tabled in Parliament this morning, the auditor says $2.4 billion in outstanding students loans were in default last year, most of which will likely not be recovered.

The auditor blames a combination of factors, including a failure to assess whether those asking for loan relief actually qualify and a failure to inform borrowers of their financial obligations.

The auditor also says 87 per cent of recent borrowers were not making repayments on $2.9 billion in loans as the government has made it easier to access loan relief.

The Canada Revenue Agency was found to have its hands tied in recovering outstanding loans, in part because it did not have the same powers as when it comes to recovering unpaid income tax.

The auditor says the government needs to take a tougher stance by better assessing whether borrowers should be given relief and using other measures such as notifying credit bureaus of loans in default to encourage more repayment.

ALSO READ: Nearly 11M Canadians have received COVID-19 emergency benefit, wage subsidy

The Canadian Press


Like us on Facebook and follow us on Twitter.

StudentsUniversities and Colleges

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Wheels in motion for mountain biking trail project near Clinton

Project to provide immediate employment while resulting in new trail on Jesmond Mountain

New wildfire springs up north of Clinton; lightning suspected as cause

Fire is not a flare-up of blaze that started on Aug. 1 near 51 Mile Creek

Financial assistance available for victims of flooding in TNRD

Government will pay 80% of eligible claims resulting from flood damage

Clinton RCMP looking for Citizens on Patrol program volunteers

Organizer hoping to have enough people to get program started in September

Free online course aims to keep care home residents, staff safe

Course gives basic COVID-19 information and safety procedures for visitors to protect the vulnerable

B.C. records 30-50 new COVID-19 cases a day over weekend, no new deaths

Many of those testing positive were identified by contact tracing for being linked to other confirmed infections

Five B.C. First Nations call out Canada for ‘discriminatory’ food fish practices

West Coast nations say government ignoring court-won right to chinook and coho

Salmon arrive in larger numbers at Big Bar landslide

Arrival follows historic high-water levels that halted migration runs

Rent-relief program becomes new front in fight between Liberals, opposition

Opposition trying to draw parallels between decision to have Canada Mortgage and Housing Corp. run program and the WE controversy

Ottawa sets minimum unemployment rate at 13.1% for EI calculation

Statistics Canada says the unemployment rate was 10.9 per cent in July

$45K in donations received after couple’s sudden death in Tulameen

Sarah MacDermid, 31, and Casey Bussiere, 37, died August long weekend

Famous Yukon-based bhangra dancer brings movements of joy to Long Beach

Internet-famous dancer is exploring Vancouver Island, visiting the B.C. Legislature and more

Battle of Fairy Creek: blockade launched to save Vancouver Island old-growth

‘Forest Defenders’ occupy road to prevent logging company from reaching Port Renfrew-area watershed

Most Read