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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frustrated-guy View Drop Down
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Joined: 10/May/2004
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    Posted: 01/December/2006 at 3:37am

Hi Mark,

You have great suggestions.  Here is one more.

REMOVE THE TIME LIMIT ON IN SCHOOL INTEREST FREE STATUS

Most student loan programs have a six year in school interest free limit (used to be ten years). What this means is six years after you get your first loan your loans go into repayment even if you are a full-time student.  This policy particularly impacts graduate students (esp PhD) and other students (eg medical students) that are in school a long time. 

It is one thing to deny students further loans while at school but to require repayment of previous loans while at school is cruel.

It would be great if the gov would allow students to finish their programs in interest free status until being forced to begin repayment.

What the gov could atleast do as a compromise is this.  If the student exhausts their six years of in school interest free status while in school the student could complete the academic program they are currently enrolled in interest free non repayment status (but would not be offered interest-free status if the student began a new program after exhausting the interest free limit).   This would allow the student to actually complete their credential and have a hope of repaying their loan.

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