Canada Student Loans Act (R.S.C., 1985, c. S-23)

Marginal note:Limitation period

• 19.1 (1) Subject to this section and section 19.2, no action or proceedings shall be taken to recover money owing under a guaranteed student loan more than six years after the day on which the money becomes due and payable.

• Marginal note:Deduction and set-off

  (2) Money owing under a guaranteed student loan may be recovered at any time by way of deduction from or set-off against any sum of money that may be due or payable by Her Majesty in right of Canada to the borrower or the estate or succession of the borrower.

• Marginal note:Acknowledgment of liability

  (3) If a borrower’s liability for money owing under a guaranteed student loan is acknowledged in accordance with subsection (4), the time during which the limitation period has run before the acknowledgment does not count in the calculation of that period.

• Marginal note:Types of acknowledgments

  (4) An acknowledgment of liability means

  • (a) a written promise to pay the money owing, signed by the borrower or his or her agent or other representative;

  • (b) a written acknowledgment of the money owing, signed by the borrower or his or her agent or other representative, whether or not a promise to pay can be implied from it and whether or not it contains a refusal to pay;

  • (c) a part payment by the borrower or his or her agent or other representative of any money owing; or

  • (d) any acknowledgment of the money owing made by the borrower, his or her agent or other representative or the trustee or administrator in the course of proceedings under the Bankruptcy and Insolvency Act or any other legislation dealing with the payment of debts.

• Marginal note:Acknowledgment after expiry of limitation period

  (5) If a borrower’s liability for money owing under a guaranteed student loan is acknowledged in accordance with subsection (4) after the expiry of the limitation period in respect of the loan, an action or proceedings to recover the money may, subject to subsections (3) and (6), be brought within six years after the date of the acknowledgment.

• Marginal note:Limitation period suspended

  (6) The running of a limitation period in respect of a guaranteed student loan is suspended during any period in which it is prohibited to commence or continue an action or other proceedings against the borrower to recover money owing under the loan.

• Marginal note:Enforcement proceedings

  (7) This section does not apply in respect of an action or proceedings relating to the execution, renewal or enforcement of a judgment.