PR Rejected Due to Student Loan

[ohnoanotheruti]

Hello,

My application for PR under FSW was recently rejected due to my student loan. I had $60k CAD in my bank account, with a student loan of $70k that had to be paid off by 2040, payments for which would only begin in 2022 (currently under deferment). While I understand that with the total assets - liabilities equation, I am in the red, I was under the impression that student loans do not count towards this especially as they are paid off over a period of time, and I have more than enough in my checking accounts that is liquid to cover initial expenses.

Anyone in a similar situation? I am thinking of appealing the decision, but not sure what I can say, except for perhaps providing proof that loan repayment begins in 2022 and even with the required payments, my checking account would last for multiple years.

Any advice is much appreciated.

Thanks!

 

[k.h.p.]

What was the reason for refusal mentioned in communications?

 

[ohnoanotheruti]

The reason was that they did not think I meet the minimum requirements for available funds. They weren't satisfied that I had sufficient liquid and transferable funds at my disposal.

 

[k.h.p.]

From what I can tell from IRCC operational bulletins and manuals, the funds must be:

• available and transferable;
• unencumbered by debts or other obligations

 

[ohnoanotheruti]

I thought I met those requirements... The money I have shown in my checking accounts was not from the student loans - the loans were applied directly to my tuition. Since they are private student loans there isn't a lien on my bank accounts either.

Finally, I just checked and repayment does not begin till 2025. Surely that means my funds are available, transferable, and unencumbered by debs for a reasonable time.

I am hoping if I can provide an official letter about repayment terms, that sways the decision in my favor. Thoughts?

 

[Sen88]

I thought I met those requirements... The money I have shown in my checking accounts was not from the student loans - the loans were applied directly to my tuition. Since they are private student loans there isn't a lien on my bank accounts either.

Finally, I just checked and repayment does not begin till 2025. Surely that means my funds are available, transferable, and unencumbered by debs for a reasonable time.

I am hoping if I can provide an official letter about repayment terms, that sways the decision in my favor. Thoughts?

Any update please? I'm in a same boat

 

[kiwissima]

Where did you show the loan?

 

[SlyDigits]

I thought I met those requirements... The money I have shown in my checking accounts was not from the student loans - the loans were applied directly to my tuition. Since they are private student loans there isn't a lien on my bank accounts either.

Finally, I just checked and repayment does not begin till 2025. Surely that means my funds are available, transferable, and unencumbered by debs for a reasonable time.

I am hoping if I can provide an official letter about repayment terms, that sways the decision in my favor. Thoughts?

Unfortunately it doesn't work that way. The debt is on you so your current liquid assets need to be in excess of the minimum required amount - after deducting all debts.

Repayment start date does not figure in the discussion because no one knows the future. You might pay everything back on the first day or never make a single payment - the future is unknown and uncertain so they will not try to assume the best case scenario.

No such thing as "reasonable time".

You can ask someone to "gift" you enough to show the required funds. So they'll have to gift you 10k + minimum requirement to meet and exceed your debts by the minimum amount required.

Besides that, you are free to write whatever you want to them but it's unlikely to change their decision because the conditions mentioned are clear and you, currently, do not meet them.

 

[Sen88]

Unfortunately it doesn't work that way. The debt is on you so your current liquid assets need to be in excess of the minimum required amount - after deducting all debts.

Repayment start date does not figure in the discussion because no one knows the future. You might pay everything back on the first day or never make a single payment - the future is unknown and uncertain so they will not try to assume the best case scenario.

No such thing as "reasonable time".

You can ask someone to "gift" you enough to show the required funds. So they'll have to gift you 10k + minimum requirement to meet and exceed your debts by the minimum amount required.

Besides that, you are free to write whatever you want to them but it's unlikely to change their decision because the conditions mentioned are clear and you, currently, do not meet them.

If I have the Canadian loan repayment amount of 40k, and the required proof of fund is 15k to apply for PR in my home country's bank account under my name, will it affect my PR application and cause for refusal?

The required proof of fund of 15k for PR, I can show for more than 6 months as required.

But the Canadian loan repayment amount of 40k, I can show it as a gift of deed from my parents under my account (one month prior to the application). So is there any minimum required period should be maintained for this scenario? And how long I should keep this amount?

 

[SlyDigits]

If I have the Canadian loan repayment amount of 40k, and the required proof of fund is 15k to apply for PR in my home country's bank account under my name, will it affect my PR application and cause for refusal?

The required proof of fund of 15k for PR, I can show for more than 6 months as required.

But the Canadian loan repayment amount of 40k, I can show it as a gift of deed from my parents under my account (one month prior to the application). So is there any minimum required period should be maintained for this scenario? And how long I should keep this amount?

According to my understanding of their guidelines, you need about 15k over and above your total debt owed, consistently for a period of 6 months.

A gift deed 1 month before will not work - it is precisely these kind of loopholes that they are trying to stop applicants from using.

That said, please consult an immigration lawyer before making any decisions - there is a reason they specialise in the field.

If you don't take medication based on what some neighbour or forum member thinks, and consult a doctor, then why would you base your life's immigration decision based on some random person's statement on a forum?

What if I am wrong?

 

[Sen88]

According to my understanding of their guidelines, you need about 15k over and above your total debt owed, consistently for a period of 6 months.

A gift deed 1 month before will not work - it is precisely these kind of loopholes that they are trying to stop applicants from using.

That said, please consult an immigration lawyer before making any decisions - there is a reason they specialise in the field.

If you don't take medication based on what some neighbour or forum member thinks, and consult a doctor, then why would you base your life's immigration decision based on some random person's statement on a forum?

What if I am wrong?

Thank you for your updates. I will definitely consult with an immigration lawyer.

I thought to ask on forum because if anybody has gone through similar situation and the outcome

 

[paulm0920]

I am 100% convinced that this is a technical mistake by the IRCC analyst and that it can be resolved with clarification. I would suggest

• A letter from the lender stating the nature of the deferment and payment terms
• A clear LOE stating the your payment plan.

One other presumption to why your case was rejected would be that it may not be clear to the case analyst that none of your $60k savings came from the $70k loan. If you could show several months worth of bank statements showing where at least $19k of that $60k came from, I think you can get the decision reversed as it would eliminate any doubts that your money came from the loans.

The other posters seem to suggest that your proof of funds is your net worth, and I disagree with that. I know several people who have way bigger student loans and far less savings than OP successfully immigrate. Perhaps the rejection was only due to a lack of clarity or failure to disclose.

If you think about it, net worth is not pursuant to the purpose of settlement funds. Settlement funds are used to keep yourself and your family afloat while you search for a job in Canada. The student loans mentioned by OP are deferred for several years. If OP does not find a job in Canada by 2025, when those loans are due for repayment, his settlement funds would have evaporated anyway regardless of the loans.

OP I would definitely appeal this with the help of a top notch immigration lawyer (it seems like you could afford one). I am also working with a team of immigration lawyers, feel free to PM me if you want me to ask them something for you.