Failing to repay OSAP?

Question

My wife was a canadian and went to school in Ontario. While there, she got OSAP assistance. When she finished school she came back to the US to marry and has no plans of going back to Canada.

She forgot about the OSAP loan and it has now been a few years. She made a call to find out it is pretty large, and is already in default since no payments have been made as of yet.

What are the consequences of failing to repay the OSAP? The OSAP site mentions they can withhold Canadian tax returns, and would be reported to credit bureaus. If it would have hit her credit in the US, I would figure it would be on her report already (which it isn't). Since she is not planning a return to Canada, can they try to seize assets in the US to collect? She doesn't have anything under her own name (everything is titled to me), could they try to come after me? At what point (if any) is the loan discharged?

Thanks!

Answer 1

She can file for bankruptcy 10 years after her graduation date and include the OSAP in her list of creditors.  Other than that, it is never discharged.

Any monies that she might be eligible for from the Canadian government will be seized.  So if she is planning to get Canada Pension, she will be out of luck.  

I don't know if credit reports are international -- good question!  If she plans to never return  to Canada ever in her life, I guess you don't need to worry about it.  

But if she has parents in Canada and they die and she is included in the will or there are assets that would come to her, then she may have a problem.

Answer 2

Call OSAP and ask them..