This website is a testimony to the problems Canadian Student Loan borrowers experienced from approximately 1996 to 2008 and until their loans were paid off.

The privatization of the Student Loans system by the Chretien and Martin Liberal governments broke the system and defaulted thousands of borrowers who were trying to pay their loans. There were even stories of suicide due to the harassment of borrowers.

Read the report that I prepared back in 2007 here. Canada Student Loans-The Need for Change Fortunately the new Conservative government at the time revamped the program and fixed the system for new borrowers, but borrowers under the previous program were left with ruined credit and continued harassment from debt collectors.

I call on the Canadian Government to apologize to the borrowers affected by this fiasco and make amends.

Unfortunately the Liberal government is again clobbering the Education system with their upcoming changes to International Student Visas. Yes, there's a problem, but instead of a well thought out plan, they have pulled the emergency brake on the train causing a derailment. This has introduced unprecedented instability for both private and public education institutions who serve both international and local students.

Universities can't plan. I've heard of courses being cut because the government has no process in place for universities to send the newly required acceptance letters to the government.

This means that students who have been accepted can not attend courses that start in the summer 2024 semester. With cut sections, current Canadian students will have trouble getting courses, and may have to switch to part-time which changes their enrollment status and might trigger repayment of their loans or ineligibility for funding. I've seen this before. It wreaks havoc on the student loan borrowers.

Again, the Liberal government has messed up the education environment. Will the new system needed in a rush for the acceptance letters be the new Arrivecan scandal?

I call on the government to implement a slower phased in approach and delay the requirement of the acceptance letters until a process is in place to submit these letters.


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    Posted: 26/May/2005 at 11:53am
May 26tth

Spoke to CFS today. With the government counsel a letter has been written to the judge asking when the decision will be ready.

Of note as well is that Senator Moore has introduced a bill in the senate to change the bankruptcy law from 10 years to five

Note that even the current law states that the discharge is not automatic. The debtor must satisfy the court that they can not pay the debt and have acted in good faith.

http://www.parl.gc.ca/38/1/parlbus/chambus/senate/bills/publ ic/S-28/S-28_1/S-28_text-e.htm

Her Majesty, by and with the advice and consent of the Senate and House of Commons of Canada, enacts as follows:
1. (1) Subparagraph 178(1)(g)(ii) of the Bankruptcy and Insolvency Act is replaced by the following:
(ii) within five years after the date on which the bankrupt ceased to be a full- or part-time student; or

     (2) The portion of subsection 178(1.1) of the Act before paragraph (a) is replaced by the following:
Court may order non-application of subsection (1) (1.1) At any time after five years after a bankrupt who has a debt referred to in paragraph (1)(g) ceases to be a full- or part-time student, as the case may be, under the applicable Act or enactment, the court may, on application, order that subsection (1) does not apply to the debt if the court is satisfied that:
(a) the bankrupt has acted in good faith in connection with the bankrupt's liabilities under the loan; and

(b) the bankrupt has and will continue to experience financial difficulty to such an extent that the bankrupt will be unable to pay the liabilities under the loan.




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Taken from http://www.student-loan-bankruptcy.ca/...

Bill C-55 To Reform the Bankruptcy & Insolvency Act Introduced in the House of Commons on June 3, 2005
After much anticipation the government has finally introduced Bill C-55, succinctly titled: An Act to establish the Wage Earner Protection Program Act, to amend the Bankruptcy and Insolvency Act and the Companies’ Creditors Arrangement Act and to make consequential amendments to other Acts.

In what is probably the biggest disappointment to former students, the much anticipated reduction in the student loan discharge period was not substantially reduced.

Since November, 2003 when the Senate Committee on Banking, Trade and Commerce released a report called Debtors and Creditors: Sharing the Burden: A Review of the Bankruptcy and Insolvency Act, former students have hoped that the government would reduce the discharge period on student loans from 10 years to 5 years, as recommended in the above noted report.

Under current law, a student loan is only automatically discharged in a bankruptcy if the student has been out of school for over ten years.

If Bill C-55 passes, subparagraph 178(1)(g)(ii) of the Bankruptcy & Insolvency Act will be amended to reduce the period from ten years to seven years. In other words, if you have ceased to be a full time or part time student for seven years when you go bankrupt, your student loans will be automatically discharged.

To soften the blow, the bankrupt may apply to the court if their student loans are more than five years old, and the court may discharge the debt if the bankrupt has acted in good faith, and the bankrupt has and will continue to experience financial difficulty to such an extent that the bankrupt will be unable to pay the debt.

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The Bankrupcty Charter Challenge decision has been released.

Not good news I'm afrain..

Read info at CFS website
http://action.web.ca/home/cfs/en_alerts.shtml?x=78914&AA_EX_ Session=59e03f3f757e70e3eca5665cee1ccec4
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