Concepción Court rules CAE student loan debts do not expire

The Concepción Court of Appeals has ruled that debts related to the State-Guaranteed Loan (CAE) held with the Chilean Treasury do not expire or become void when the original bank promissory note reaches its statute of limitations.

In a ruling dated August 13, 2026, the court rejected a protection resource filed by a debtor seeking to halt coercive collection efforts. The court determined that once the state guarantee is exercised following payment to the original creditor, a public debt is created in favor of the Chilean Treasury. This debt is governed by the Tax Code and is legally independent of the original private contractual relationship.