Proposed law could see ICBC refusing licences for unpaid student loans

WATCH:  If you refuse to pay TransLink fines, bridge tolls or traffic tickets, ICBC has been empowered to refuse to issue or renew a driver’s license. Now, anyone who has unpaid student loans could face a similar fate. Keith Baldrey explains. 

VANCOUVER – The B.C. Government is proposing a new law that would allow ICBC to withhold your driver’s licence if you have not paid off your student loans.

The government says the legislation will help it collect outstanding loans. The law would allow ICBC to refuse to issue a licence to a person who has not paid off their debts.

The finance minister says there is now $185 million in student loans that have not been paid. He estimates the new rules will help collect an extra $3 million each year.

“These are tax dollars,” said Transportation Minister Todd Stone today. “These are essentially loans from the taxpayers of British Columbia to students so they can get their education…we just think it’s the right thing to do.”

However, students will be given a chance to provide a reason as to why they have not made a payment on their loan before they are denied a new or re-issued licence. This law would also only apply to accounts that have not been in good standing for more than a year.

ICBC can already refuse to issue or renew a licence if a person has not paid Translink fines, bridge tolls or traffic tickets, for example. In late January it was revealed  55,400 people have ‘refuse-to-issue’ notices on their file due to unpaid fines on the Golden Ears Bridge, Port Mann Bridge, TransLink tickets and family maintenance.

25,000 people owe money for tolls on the Port Mann Bridge. 17,000 owe money for tolls on the Golden Ears Bridge. 4,100 people have TransLink debt, such as unpaid tickets. 9,300 owe money for what ICBC calls ‘family maintenance’, meaning unpaid child support or spousal support.