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

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

An Island Health nurse prepares a dose of COVID-19 vaccine. (Photo courtesy Island Health)
Health authority opening 19 clinics to immunize Vancouver Island residents

Health authority anticipates more than 40,000 people will be immunized over the next month

The Alberni Valley’s Emergency Operations Centre is located around the corner and below the Alberni-Clayoquot Regional District office. (AV NEWS FILE PHOTO)
ACRD, First Nations to partner on regional evacuation route

Union of BC Municipalities grants $82K for route development

Traffic on Cherry Creek Road is at a standstill as emergency vehicles deal with the aftermath of a collision on Saturday, March 6, 2021. (PHOTO COURTESY TONY SHUMUK)
Air ambulance called for motor vehicle incident near Port Alberni

Helicopter lands on field near Cherry Creek Road

The Alberni Valley Bulldogs have teamed up with the WCGH Foundation in the past to deliver stuffed animals to patients at the hospital. (AV NEWS FILE PHOTO)
Alberni Valley Bulldogs hope to score large donation for West Coast General Hospital

Challenge is part of a league-wide initiative to help give back to teams’ communities

A Port Alberni RCMP car blocks access to Anderson Avenue at Burde Street. (RCMP PHOTO)
Replica firearm prompts police incident in Port Alberni

RCMP had blocked off a neighbourhood while searching for ‘man with a gun’

Elvira D’Angelo, 92, waits to receive her COVID-19 vaccination shot at a clinic in Montreal, Sunday, March 7, 2021, as the COVID-19 pandemic continues in Canada and around the world. THE CANADIAN PRESS/Graham Hughes
‘It’s been a good week’: Tam hopeful on vaccines as pandemic anniversary nears

Tam says the addition of two new vaccines will help Canadians get immunized faster

(The Canadian Press)
‘Worse than Sept. 11, SARS and financial crisis combined’: Tourism industry in crisis

Travel services saw the biggest drop in active businesses with 31 per cent fewer firms operating

Pictures and notes in from friends and classmates make up a memorial in support and memory of Aubrey Berry, 4, and her sister Chloe, 6, during a vigil held at Willows Beach in Oak Bay, B.C., on December 30, 2017. THE CANADIAN PRESS/Chad Hipolito
Mother of slain daughters supports recent changes to Canada’s Divorce Act

Sarah Cotton-Elliott said she believed her children took a back seat to arranging equal parenting

The Port Alice pulp mill has been dormant since 2015. (North Island Gazette file photo)
Parts recycled, life returning to inlet as as old Port Alice mill decommissioned

Bankruptcy company oversees de-risking the site, water treatment and environmental monitoring

Cannabis bought in British Columbia (Ashley Wadhwani/Black Press Media)
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

Victoria man Brett Andersen is asking for people’s help to secure him one of eight free tickets to the moon. (Screenshot/@brettandersen Instagram)
Victoria man wants your help securing a free ticket to the moon

Japanese billionaire offering eight people a trip to the moon

The Conservation Officers Service is warning aquarium users after invasive and potentially destructive mussels were found in moss balls from a pet store. (BC Conservation Officers Service/Facebook)
Aquarium users in B.C. warned after invasive mussels found at pet store

Conservation officers were told the mussels were found in a moss ball from a Terrace pet store.

Hockey hall-of-fame legend Wayne Gretzky, right, watches the casket of his father, Walter Gretzky, as it is carried from the church during a funeral service in Brantford, Ont., Saturday, March 6, 2021. HE CANADIAN PRESS/Nathan Denette
Walter Gretzky remembered as a man with a ‘heart of gold’ at funeral

The famous hockey father died Thursday at age 82 after battling Parkinson’s disease

Most Read