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

West Shore Rotary Club raises $20,000 with Golf Ball Drop fundraiser

Nearly 4,000 golf balls poured onto Olympic View golf course Saturday

Construction slows weekend traffic at Millstream overpass

West Shore RCMP recommend Leigh Road exit instead

TRAFFIC: Saanich emergency crews responding to Pat Bay Highway collision

Incident took place at Haliburton Road intersection

Saanich race car driver shifts gears as pandemic cuts U.S. season short

Bill Okell, 65, sets sights on Canadian racing circuit for 2020

Chorus expands online options to in-person rehearsal in Langford, Oak Bay

Free, non-auditioned SingYourJoy recruits those aged 16 to 29

B.C. records 98 more COVID-19 cases, most in Lower Mainland

One new senior home outbreak, Surrey Memorial outbreak over

POLL: Do you agree with the decision to call a provincial election for Oct. 24?

British Columbians will put their social distancing skills to the test when… Continue reading

Is it time to start thinking about greener ways to package cannabis?

Packaging suppliers are still figuring eco-friendly and affordable packaging options that fit the mandates of Cannabis Regulations

Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

Vancouver Island Tour de Rock riders roll into Parksville Qualicum Beach

Saturday’s schedule includes Port Alberni, Ucluelet and Tofino, followed by Nanaimo on Sunday

97 distressed horses, cats and dogs seized from farm in Princeton

RCMP assisted as BC SPCA executed search warrant

$250K reward offered as investigation continues into Sea to Sky Gondola vandalism

Police also asking for specific footage of Sea to Sky highway around time of incident

Most Read