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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hunter View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote hunter Quote  Post ReplyReply Direct Link To This Post Topic: This ones for 2laural:
    Posted: 12/July/2004 at 8:24am
You stated: "As the BIA is written now, when a person files an assignment in bankruptcy, has ceased to be a student for more than 10 years, and has obtained their discharge from bankruptcy, their financial responsibility for the debt is finished".

So lets say I filed in 2002, but it will be 2008 before my student loans are ten years, so will they be discharged in the bankruptcy, or will I have to go to court and ask for the student loans to be discharged???
My trustee told me that I will have to file bankruptcy again in 2008 to have them discharged. She says she knows nothing about the loans being discharged after the ten years, Then again she is not returning my phone calls.

Can you please elaborate on this?
Thanks so much
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2Laural View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote 2Laural Quote  Post ReplyReply Direct Link To This Post Posted: 13/July/2004 at 11:05am
You will not need to file a second bankruptcy.

You will need to make a motion to the bankruptcy court in the jurisdiction where you live to have a hearing before the Registrar.

Contact the local Courthouse, and they should be able to give you examples of court orders, or information on what to file (praecipe etc).

There have been recent court cases that say the court cannot wipe out only a portion of the debt, but they can wipe out the whole amount after the 10 year period has expired. I am continually resarching case law on this topic.

If you want some legal advice, contact the local law society and they may be able to give you a phone number. In Vancouver, the local Lawyer Referral Service # is 604-687-3221. They charge $10 (including taxes) for 30 minute session.

Good luck, and let me know how things work out.

L

PS - If you have concerns, please talk to your trustee (not the administrator), or the Office of the Superintendent of Bankruptcy. Normally in a Trustee's office you deal with the Administrator or Estate Manager. The Trustee is the person who you met with when you signed the papers.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote hunter Quote  Post ReplyReply Direct Link To This Post Posted: 19/July/2004 at 7:51am
Thank you, thank you and did I say thank you.
I will keep you posted.
Thank you
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Post Options Post Options   Thanks (0) Thanks(0)   Quote 2Laural Quote  Post ReplyReply Direct Link To This Post Posted: 19/July/2004 at 10:47am
Your very welcome.

L
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Post Options Post Options   Thanks (0) Thanks(0)   Quote peewee Quote  Post ReplyReply Direct Link To This Post Posted: 21/July/2004 at 3:59am
i talked to my trustee yesterday regarding bankrupty and student loans.  he said he has had five clients who have included their SL's in their bankruptcy and 4 out of those 5 clients have successfully had their SL's discharged.  these were recent bankruptcies (ie the last one was 6 months ago).  for the 4 successes, one was under the 2 year rule and the other three were under the 10 year rule.  so it does indeed happen but not all the time.  he said that only in one case was the discharge of the sl opposed and this happens on an individual basis.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote masy Quote  Post ReplyReply Direct Link To This Post Posted: 22/July/2004 at 9:59am

peewee, I would be very interested to learn how those people managed to get discharges after less than 10 years. Is there any way you could find out from your trustee?

I have 4 and a half years left before I can apply, if I decide to do that, which I will if I'm in the same financial situation (hopefully I will be making more money by then!). If I don't apply for bankruptcy, I have another 8 years to pay on my loan. If I was just paying on the principal, I would probably have it paid off in 2 more years! When I stated that to my credit counsellor, he told me to wait it out and apply for bankruptcy when I am eligible to do so. Clearly, he also sees the hopeless situation we are all in.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote peewee Quote  Post ReplyReply Direct Link To This Post Posted: 22/July/2004 at 12:28pm

sorry, you misunderstood.

in each case discharges occurred under the rules that applied at the time.  i.e. when the rule was 2 years after the last day of study the trustee had a client who satisfied this criteria and successfully discharged under those rules.  as well, when the rule changed to 10 years, the trustee had 3 clients who had been out of school for at least 10 years and could therefore apply to have their loans included in their bankruptcies and successfully had them discharged.

i was responded to a previous message that stated that SL never got discharged.  i was simply stating that yes in fact they do some of the time when all criteria are met.

 

 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote sickandtired Quote  Post ReplyReply Direct Link To This Post Posted: 22/July/2004 at 12:35pm

I filed bankruptcy in 2001 was discharged in Feb 2002

I completed school in April 1997.  My last student loan was Sept. 1996 for the last year.  So when does the 10 year rule start from the last day attending school or the last day a student loan was given?  If it is the last day of school April 15 ,1997 am I eligible under the bankruptcy for April 1997 to ask for discharge on my student loan considering they were not discharged in 2001????

elizabeth
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Post Options Post Options   Thanks (0) Thanks(0)   Quote peewee Quote  Post ReplyReply Direct Link To This Post Posted: 22/July/2004 at 4:13pm
i'm no expert but it is my understanding that you are only eligible for you SL to be discharged where 10 years has gone by from the last day you were considered a student.  this applies to any one who filed bankruptcy after august 1998.  so i guess in your case that would be april 2007.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote peewee Quote  Post ReplyReply Direct Link To This Post Posted: 22/July/2004 at 4:27pm

here is quote taken from the Report of the Personal Insolvency Committee of the Insolvency Institute of Canada entitled:

Recommendations for Reform and Further Amendments to the Bankruptcy and Insolvency Act. (link below)http://www.insolvency.ca/papers/PICReport.html

Bankruptcy Act Amendments – 1998

"During the 1995 to 1997 time frame, the financial institutions were becoming increasingly alarmed as a result of the significant losses they were now seeing in their loan portfolios.  We assume there were frank discussions between the government and the financial institutions voicing their concerns.  Accordingly, without consultation with other stakeholders in the insolvency process, the federal government announced in the budget speech of 24 February 1998, less than 5 months after the implementation of the 2 year rule, that students would not be dischargeable by bankruptcy from any student loan obligations for 10 years.  No ability was granted to courts to deal with hardship cases until after the expiry of the 10 year period.  This new rule became effective on 18 June 1998.

To mitigate somewhat the impact of this provision, the Minister of Finance announced, in the same budget speech, a number of worthwhile measures to help students better manage their CSLP debt.  These included deductibility of interest payments, extended repayment periods up to 15 years, and interest relief, based on formula, for up to 5 years.  In situations where payments exceeded 15% of income, loan principal reductions could be sought of up to $10,000, or 50% of the loan, whichever is less.  However, such reductions would not be available until 5 years had elapsed.  We note, however, that none of these relief measures are available to students who have allowed their loan repayments to go into default.  Further, if a former student sometime later renews studies, the 10 year period starts all over again, even for the older loans.  The 10 year rule relates to the time last attended an institution, not when a loan was made or was outstanding."

hope this is informative

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Post Options Post Options   Thanks (0) Thanks(0)   Quote peewee Quote  Post ReplyReply Direct Link To This Post Posted: 22/July/2004 at 4:32pm

also note that i was wrong on the date of implementaton.  the 10 year rule became effective on June 18, 1998.  so if you filed bankruptcy after this date then you have to wait 10 years after you have ceased to become a student to have you loans discharged.

[.s. sorry for all the posts

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 22/July/2004 at 5:20pm

 

 That is exactly how it it is, peewee. Also,. you had touched on the 1995-97 time frame. actually, it goes back a bit further than that - the year 1989-1990. The governments and banks were taking heavy losses as a result of the increase in bankruptcy assignments. Many people were going bankrupt specifically because of student loans. Many of these people could have paid towards their student loans, however, the bankruptcy route seemed to be a better movement for many. This is how the governments and financial institutions viewed it. The federal government has closed and tightened up every window to protect their investments.

 Another alarm was the 1990/91 recession. Despite the economic recovery, bankruptcies had climbed to record highs.

 

Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
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Post Options Post Options   Thanks (0) Thanks(0)   Quote pmwattshui Quote  Post ReplyReply Direct Link To This Post Posted: 05/August/2004 at 1:10pm
I hope that they are fair minded about this whole thing instead of forcing huge debt on those of us with averege saleries.  I have $90,000SL and I only make $33,000/year.  I don't qualify for any of the "help offered"  When I said I could not afford to pay all I was told to "find it from parents etc"  My family is poorer than me.  They did not believe me.  To protect myself and family from harrasment I went into bankruptsy for a temporary break and to wait for this court case and see any changes that might take place. I can't even pay the interest.   Any similar stories out there?
Big Cat
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Post Options Post Options   Thanks (0) Thanks(0)   Quote pmwattshui Quote  Post ReplyReply Direct Link To This Post Posted: 05/August/2004 at 1:10pm

or any suggestions

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Post Options Post Options   Thanks (0) Thanks(0)   Quote mcqwaid Quote  Post ReplyReply Direct Link To This Post Posted: 31/August/2004 at 10:40pm

I'm in a very similar situation.

What if I registered for an online TESL certificate ( Teaching english ) through a school in Britain and paid with my own cash. Does the bankruptcy law recognize this as being a student and reset the clock on my ten year wait.

Thanks in advance to anyone with some thoughts

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Guests Quote  Post ReplyReply Direct Link To This Post Posted: 31/August/2004 at 11:40pm
I don't kinow whether you'll get punished nagain for studying, but if you do, take the ESL option and leave the country.
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