Question:
If one owes money on a Canada student loan but is not yet required to make a payment on the student loan (i.e.during the six-month period after completing school or training), will Revenue Canada automatically take one's income tax refund and apply it against an outstanding student loan balance without further notice to the student? I thought Revenue Canada only did this in situations where the student is delinquent or in default of paying their student loan. Help much appreciated - thank you.

Answer:
I never heard that, where are you getting this info ? Under line 484 it states as follows: Although you may be entitled to a refund for 1998, we may keep some or all of it to: - apply against any amount you owe us or are about to owe us; - apply against certain other outstanding federal, provincial, or territorial government debts, such as student loans, Employment Insurance and social assistance benefit overpayments, Immigration loans, and training allowance overpayments; and - satisfy a garnishment order under the Family Orders and Agreements Enforcement assistance Act.

What I needed to know is whether or not they would automatically take away someone's refund to apply against a student loan even though the actual payment date of the loan is some months away. In my situation, I must begin paying back my student loan on May 1 of this year. I recently E-Filed my return to Revenue Canada in anticipation of a large (approximately $1000) refund, but I am unsure as to whether I will actually see this money two weeks from now when the refund actually shows up in my bank account. This money was earmarked for other needs in my family and I am counting on it. If, in the event they do take it, is this actionable under a Notice Of Objection?