Proposed legislation will connect unpaid student loans with ability to renew driver’s license

March 2, 2015

Students in BC who are not making payments on outstanding student loans could find themselves unable to renew a driver’s license or insure a vehicle, if proposed legislation is passed. Finance Minister Mike de Jong said that there is over $185 M in outstanding student loans in the province; the new legislation could help BC recover an additional $3 M annually. If a person’s debt is flagged for repayment by the government, under the new legislation the Insurance Corporation of BC (ICBC) could refuse to renew or issue a license, or to insure a vehicle. “For folks that graduate and get a job and are working and decide they just don’t want to take their obligation to repay their student loan seriously, this would be a mechanism to remind them on a fairly regular basis they need to honour that obligation,” said de Jong. The legislation would also apply to those who have not paid outstanding court fees and other fines. Vancouver Sun