Student Loan Cheques Debt Questions

by JCS
(Calgary Alberta)

My girlfriend got a student loan to go to college, she decided not to go to college and never cashed the cheques. She mailed them back to the student loan company and they were never cashed.

The student loan company changed address and failed to collect mail from the previous address. They have directed a debt collection agency to regain the funds from my girlfriend even though the money cheques were never deposited and are now no longer in her possession. Essentially they are trying to collect money that was never borrowed.

What are our options if the student loan company and debt collection agency are dragging their asses in resolving this?