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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Post Options Post Options   Thanks (0) Thanks(0)   Quote frustrated-guy Quote  Post ReplyReply Direct Link To This Post Topic: change CSL min payment to 1% of principal
    Posted: 22/February/2007 at 4:11am
I understand that the Canada Revenue Agency forces defaulted borrowers to repay defaulted Canada Student Loans with a minimum payment of 3% of principal per month. 
 
This large amount of payment causes extreme hardship as forces the borrower to repay the loan in 3 years.
 
Normally non defaulted student loans are paid back over a ten year payment schedule with much lower monthly payments.   A ten year repayment schedule is equivalent to repaying 1% of principal per month.
 
A 3% min minimum payment on a 10,000 loan is $300 per month, while a 1% min payment is $100 per month. 
A 3% min monthly payment on a 20,000 loan is $600 per month, while a 1% min payment is $200 per month. 
 
Presently CRA is forcing borrowers who are having difficulty paying back their loans due to low income to pay much more per month than a borrower who is not having difficulty as borrowers paying back their loan using a regular repyament schedule are allowed 10 years while CRA only allows 3 years at 3% per month.  How is this fair?
 
I think CRA should accept a miniumum payment of 1% percent of principal per month for defaulted student loans.  This payment would be much more reasonable and allows the loan to be paid back over 10 years.
 
 
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