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CDA STUDENT LOANS listed twice on credit report

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wrongblonde View Drop Down
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    Posted: 23/November/2017 at 5:51am
Hey there, 
I had a student load from back in 2009. I was having a lot of trouble making the payments they wanted so ultimately it went into collections in 2012. There has been nothing happening with it since then, so I was thinking that it would be close to being removed from my credit report - just another year or so. Everything else on my report is great so I was really looking forward to it being removed so I could hopefully get a mortgage. I still pay all my GST cheques and tax returns to my loan every year, so at some point it will be paid off, but I would just like to move on with my life ya know? My degree didn't really help me in becoming employable but that's really not the point I guess. 

Anyway, long story short I got my credit report yesterday just so I could keep track of my progress to fix my credit. To my utter surprise there are two entries there from Canada Student Loans. One with a 2012 date and another from 2016. They are the same loan. In 2015 I went back to school, but I did not get a loan. I enquired with student loans at that time about whether they needed to be notified, they told me if I paid off outstanding interest they would put my loan on repayment assistance, I opted not to do that. I was paying for school out of pocket so I couldn't afford the outstanding interest. I thought that was that. 

Is that enough for them to open a whole new file? The entries in my credit report have different account numbers, but they are the same loan. Have I totally screwed myself by calling them? I have a small loan from my province before they all switched over to national. I was in contact with their collections department when I went back to school and they worked with me to reduce my monthly payments, but it didn't reset my activity date. Any advise would be appreciated. Sigh. 

Rach
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Royal-NCO View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 23/November/2017 at 9:13am
Are you certain that it is the same loan.  All student loans during the years that you've described have two parts - a provincial, and a federal portion.    Usually, the provincial portion is significantly smaller.  Are the balances about the same, or are you simply seeing an entry for your provincial portion, and another for your federal portion?  Are you certain that the same creditor is being showed in the trade ( or collection) on your credit report?

On a different note:

Your debt does not sound like it's statute barred.  Furthermore, if you can afford the downpayment on a house for securing a mortgage, you can also afford to make significantly greater payments towards your student loan.

You are really asking for trouble (legal action), by attempting to take on a mortgage at this stage.  Pay off your debt first.  You don't want to find yourself in a position where you buy a house,  have a judgement placed against you, and then not qualify when it's time to renew your mortgage.  You would lose your house and deposit.
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Royal-NCO View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 23/November/2017 at 11:04am
I made the point about paying off debt.  You could also rehabilitate it.  This involves paying off the interest and making a few payments.  By putting the loan back in good standing, you can avoid the requirement to pay it in full, but still have some chance of qualifying for a mortgage without negative consequences.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote wrongblonde Quote  Post ReplyReply Direct Link To This Post Posted: 24/November/2017 at 7:31am
They are the same loan. The totals are very similar, the only difference is the total of the new one in less to reflect the tax returns and GST payments that have gone toward the loans in the last few years. The same creditor is shown as well, CDA Student Loans PR. I also have a provincial loan which was written off so I know it's not that. I make regular payments on the provincial loan, but they have been very reasonable, and work with me when circumstances change. My Canada Student Loan has consistently been unwilling to work with me. Demanding payments of nearly 50% of what I was making at the time. I could not support myself. I am in a more stable position now (only because I stopped making those payments), but by no means would what I have saved for a down payment be enough to make a significant dent in the loan. I want to buy a very modest home, so I can build some equity (I can get this home for well under market value). After a couple years when I renew the mortgage I intend to roll all my loans into the mortgage so all will be right in the world. Having this extra entry on my credit report makes me feel like this is unattainable.

I am in my mid 30s and I just feel like I can't get ahead because of this stupid mistake I made at 18. I don't want to get into a situation where I could potentially lose a house I just bought, but going back to struggling to make payments that would be double what my mortgage could be (even with the loans added to it) is so depressing. I feel like I can see the way out so clear, but that I'll never get there. 

Anyway, thanks for the response. I appreciate your time. 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote jjunket Quote  Post ReplyReply Direct Link To This Post Posted: 28/November/2017 at 9:44am
This is not reflective of my experience rehabilitating the federal portion of my loan.

I called in to the CRA and made arrangements to rehabilitate, they were very flexible on the monthly amount to repay and quite happy to help.  They first suggested a repayment amount that was auto-calculated, and when I hesitated they were more than willing to negotiate a lower monthly amount to pay back over the timeline.  You just need to ask.

They were also sure to mention that I could call in (in advance) if I knew I was going to have trouble making a payment before the loan was rehabilitated - I didn't end up needing to, but the option was there.

In the end I even ended up being able to afford more than the amount I had negotiated which allowed me to get the loan back to NSLSC faster than originally planned.

Based on some of the research I've done during this process, Royal-NCO is right - you might end up sued if you try to apply for a mortgage without dealing with this loan first.  It seems the feds are much more likely to sue.  Besides that, any prospective mortgage lender that reviews your reports will be unlikely to work with you.

Not to be all doom and gloom, on you - I was confronted with this same reality last year.


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Johnny View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 29/November/2017 at 8:09am
The federal government (Justice Canada and CRA Legal Services) are on a litigation frenzy. This is because the recovery offices for CRA non-tax collection have been tasked with ensuring that actions are started to protect the best interest of the government and it's program. The numbers of people being sued by CRA are quite shocking to say the least. 
The Canadian Financial Wellness Group (CFWG)



www.cfwgroup.ca
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