Rejected due to student loan

[mpgSL]

Hi all,

I just received the decision from IRCC stating that my application has been refused on the basis of insufficient funds. I have two bank accounts showing funds totaling around US $23,000. However, I also have a student loan that was co-signed on my behalf and have a balance of US $26,000 that needs to be paid off by 2036. The minimum monthly payments towards this loan calculate to about $235 and it in no way affects the settlement funds that need to be shown.

I was under the impression that a student loan would not impact my settlement funds as it is something that will be paid off over a period of time. I am puzzled by this rejection and was wondering if any of you have experienced similar situations with your Express Entry application due to your student loan debt.

Thank you in advance!

 

[dry.00]

Hi all,

I just received the decision from IRCC stating that my application has been refused on the basis of insufficient funds. I have two bank accounts showing funds totaling around US $23,000. However, I also have a student loan that was co-signed on my behalf and have a balance of US $26,000 that needs to be paid off by 2036. The minimum monthly payments towards this loan calculate to about $235 and it in no way affects the settlement funds that need to be shown.

I was under the impression that a student loan would not impact my settlement funds as it is something that will be paid off over a period of time. I am puzzled by this rejection and was wondering if any of you have experienced similar situations with your Express Entry application due to your student loan debt.

Thank you in advance!

Did you disclose the student loans when you submitted the application?

I was under the impression that if you have a steady income that can pay off the loan, it would be ok.

 

[James_bk_fun]

Hi all,

I just received the decision from IRCC stating that my application has been refused on the basis of insufficient funds. I have two bank accounts showing funds totaling around US $23,000. However, I also have a student loan that was co-signed on my behalf and have a balance of US $26,000 that needs to be paid off by 2036. The minimum monthly payments towards this loan calculate to about $235 and it in no way affects the settlement funds that need to be shown.

I was under the impression that a student loan would not impact my settlement funds as it is something that will be paid off over a period of time. I am puzzled by this rejection and was wondering if any of you have experienced similar situations with your Express Entry application due to your student loan debt.

Thank you in advance!

Interesting, I wouldn't have expected that to happen. I was under the impression that CIC simply looked to see that you had "a" bank account with sufficient funds in it that you had access to. And actually if you had 'other' accounts or loans, those weren't considered.

Surely lots of people have property loans / mortgages etc that they have in their home country. And I don't think they would factor those against someone.

I'd definitely appeal it

 

[James_bk_fun]

You got your student loan from USA? and you want to run to canada? Obviously if i was the case officer, i will reject your application for trying to avoid repaying the loan

In so many ways, that is a stupid answer to a serious question

 

[sarak1812]

Hi,

I am not an expert but based on previous posts I have read that they calculate the difference if assets minus liabilities.

So I think your total funds is $23000 which is asset and your liability is $26000.

So the difference is negative balance -3000$

I know that your monthly installments do not affect your total funds and you would be paying it off by 2036 but as per my understanding you should show funds of $12669 cad in your account minus your liabilities ..

If you see your case it shows negative balance . .

Again I am just informing what I read in previous posts in this forums only so it is not my personal thought.. feel free to comment or disagree

 

[mpgSL]

Did you disclose the student loans when you submitted the application?

I was under the impression that if you have a steady income that can pay off the loan, it would be ok.

I didn't disclose the loan when I submitted all the documents initially after receiving the ITA. However, I did provide bank statements from my two accounts, which clearly showed the deposits made towards my loan. My Bank of America account contained my savings which showed the necessary settlement funds, and the US bank account is what I use for my day to day transactions and loan payments. I figured that since my loan was co-signed (it was a graduate student loan taken out in the US and co-signed by a US citizen), I would simply disclose it should the visa officer ask for any clarification of my bank transactions. In May, I received a Procedural Fairness Letter stating that they do not think I have sufficient funds and asked for clarification on several bank transactions that showed up in my statements. The transactions of concern were lump sum deposits towards my loan and some paychecks I received. So I clarified everything requested with proof of my paychecks and also provided the visa officer with a Letter of Explanation and my loan documents.

 

[mpgSL]

Interesting, I wouldn't have expected that to happen. I was under the impression that CIC simply looked to see that you had "a" bank account with sufficient funds in it that you had access to. And actually if you had 'other' accounts or loans, those weren't considered.

Surely lots of people have property loans / mortgages etc that they have in their home country. And I don't think they would factor those against someone.

I'd definitely appeal it

Thanks for your feedback! Yes, I didn't expect the loan to count against me either and that's why I went ahead and applied now. I wonder if they view property/car loans, etc. differently because those are assets that can be sold off? When I received the Procedural Fairness Letter in May, I explained that my monthly minimum payments would not affect my settlement funds. I didn't disclose the loan when I submitted all the documents initially after receiving the ITA. However, I did provide bank statements from my two accounts, which clearly showed the deposits made towards my loan. My Bank of America account contained my savings which showed the necessary settlement funds, and the US bank account is what I use for my day to day transactions and loan payments. I figured that since my loan was co-signed (it was a graduate student loan taken out in the US and co-signed by a US citizen), I would simply disclose it should the visa officer ask for any clarification of my bank transactions. In May, I received the PFL stating that they do not think I have sufficient funds and asked for clarification on several bank transactions that showed up in my statements. The transactions of concern were lump sum deposits towards my loan and some paychecks I received. So I clarified everything requested with proof of my paychecks and also provided the visa officer with a Letter of Explanation and my loan documents. None of that seemed to have convinced the officer that I had sufficient funds. At this rate, no one with student debt that exceeds their bank account balance would ever be able to receive PR via Express Entry.

Do you know if the appeal process is lengthy and expensive? If so, I might be better off figuring out a way to first pay my student debt off and reapplying at a later stage.

 

[mpgSL]

Hi,

I am not an expert but based on previous posts I have read that they calculate the difference if assets minus liabilities.

So I think your total funds is $23000 which is asset and your liability is $26000.

So the difference is negative balance -3000$

I know that your monthly installments do not affect your total funds and you would be paying it off by 2036 but as per my understanding you should show funds of $12669 cad in your account minus your liabilities ..

If you see your case it shows negative balance . .

Again I am just informing what I read in previous posts in this forums only so it is not my personal thought.. feel free to comment or disagree

I appreciate your thoughts! Yes, I do agree that if they look at the debt and deduct it from my bank balance that it actually ends up being a negative balance. However, a loan is something that needs to be paid off over a period of time and I thought that would be factored into this. In addition, my student loan was co-signed and not personally take out by myself. My co-signer is equally responsible for this loan, so I thought that would help my case as well.

I wonder if they view property/car loans, etc. differently because those are assets that can be sold off? I had tried looking at various forums to find out the impact student loans had on Express Entry applications, but was unable to find information on other applicants in my similar situation.

 

[Rajit]

Thats unfortunate! I do have a student loan. So can't we take gift deed of the loan amount from our parents to accommodate any deductions ?

Experts please advise

 

[deeps1987]

Any loan or credit card balance is counted under debt. One must be in position to show funds that can cover debt as well as settlement funds. The reason is individuals can leave country without repaying and come to Canada and cut off ties with your previous country. Obviously, Canada does not want to potentially create a situation like that where other countries on behalf of their financial institutes would have to resort to issuing notices with Interpol.

Lot of people do not disclose debt and they escape because either POF account is not the one from where they repay loan or case analyst fail to identify the transactions pertaining to loan/credit card payment.

But there have been several cases of rejection as well. You will find lot of people in this forum itself.

So get the funds to cover your debt.

 

[mpgSL]

Any loan or credit card balance is counted under debt. One must be in position to show funds that can cover debt as well as settlement funds. The reason is individuals can leave country without repaying and come to Canada and cut off ties with your previous country. Obviously, Canada does not want to potentially create a situation like that where other countries on behalf of their financial institutes would have to resort to issuing notices with Interpol.

Lot of people do not disclose debt and they escape because either POF account is not the one from where they repay loan or case analyst fail to identify the transactions pertaining to loan/credit card payment.

But there have been several cases of rejection as well. You will find lot of people in this forum itself.

So get the funds to cover your debt.

Thanks for your thoughts! My POF account was not the one I was using for my loan repayments. I had initially only wanted to submit my POF account, but a legal representative I had sought advice from told me that it would be best to also include the account that I use for my day to day transactions as the POF account did not have any transactions to show in the 6 months bank statements (I just use that account to save money when I can). Could I have only simply shown the POF account?

With regards to leaving a country and not repaying the student loan, that would not have happened in my case. My student loan was taken out in the US and co-signed by a US citizen. So if I were to ever default on the loan, my co-signer would be held responsible. My loan documents and the letter of explanation I drafted when I received the Procedural Fairness Letter clearly showed that I had an American co-signer.

 

[bestofluck]

Hi all,

I just received the decision from IRCC stating that my application has been refused on the basis of insufficient funds. I have two bank accounts showing funds totaling around US $23,000. However, I also have a student loan that was co-signed on my behalf and have a balance of US $26,000 that needs to be paid off by 2036. The minimum monthly payments towards this loan calculate to about $235 and it in no way affects the settlement funds that need to be shown.

I was under the impression that a student loan would not impact my settlement funds as it is something that will be paid off over a period of time. I am puzzled by this rejection and was wondering if any of you have experienced similar situations with your Express Entry application due to your student loan debt.

Thank you in advance!

My views on the loan

What they consider is that you are not going to earn for 6 months while you come to Canada. This is the reason they ask for a certain amount to survive for at least 6 months as POF.

Now in your case you have to pay USD 235 as loan amount which is CAD 300 approx even when you come to canada. So for 6 months the amount is 1800 CAD which anyhow you will keep paying whether you earn or not.

Now the logic is that you need this amount above the required funds of 23000 CAD.

23000 CAd + 6 months loan repayment amout 1800 CAD

so the required fund for you is 24800 and not 23000.

But it takes time to process your application so you need to show the repayment of atleast one year or 1.5 yrs as safe side.

So safe POF amount for you should be 23000 + 5400 = 28400 CAD

Note: Please confirm this with other seniors. I have sent personal reply with details

 

[dhruv_d12]

Hi All,

I have a student loan as well which I took from my home country India 3 years ago. I have been repaying the loan regularly after completing my education in Australia and working here. I send the instalment amount via money transfer services so my account statement will only show a international fund transfer and no other details regarding loan. I have received ITA and both me and my wife have around $20,000 CAD in our account as savings. My question is should I show my loan when submitting proof of funds. If I do what are the chances of rejection/approval. Is there a solution?

Thanks.

 

[ohnoanotheruti]

Hey mpgSL,

Did you appeal your decision? Did you hear back? I am in a similar situation.

Thanks!

 

[deeps1987]

Hi All,

I have a student loan as well which I took from my home country India 3 years ago. I have been repaying the loan regularly after completing my education in Australia and working here. I send the instalment amount via money transfer services so my account statement will only show a international fund transfer and no other details regarding loan. I have received ITA and both me and my wife have around $20,000 CAD in our account as savings. My question is should I show my loan when submitting proof of funds. If I do what are the chances of rejection/approval. Is there a solution?

Thanks.

What cic needs is that your total fund minus debts/loans should be equal or more than CAD 15772. So having loan is not a criteria for rejection. But if you hide it or if your fund falls below required amount after dedy loan amount, then application will be rejected