Why are loans returned to government for collection?
There are several different reasons for a loan to be returned to government, the main reasons are: • Default – If contact or payments have not been made with the service provider for a period of time, the loan is returned to government. • Bankruptcy – Generally, when a client files for bankruptcy, the loan is returned to government for collection. Newer integrated student loans (post May 11, 2004) will be maintained with the CIBC National Student Service Centre if the student is still in school. • If the CIBC National Student Service Centre is notified of a death or approval of a permanent disability application. Note: Post February 1, 2007 – collection of defaulted student loan accounts are made with the Canada Revenue Agency’s Non-Tax Collections Division – 1-866-336-7565 (English) or 1-866-336-7566 (French).
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