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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Madmorrigan View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Madmorrigan Quote  Post ReplyReply Direct Link To This Post Posted: 23/November/2008 at 3:54pm
Gracie...I'm fairly positive that bankruptcy isn't an option for you at this time. Since you just graduated, you can't really say what your employment sitch will be like long term...give it some time, but keep up on your loans (apply for interest relief, etc) to keep them in good standing for as long as you can. I'm sure that will go a long way to help.

My sitch is pretty similar to the one above....graduated in 1997, full debt load, tried community college for ONE DAY back in 2001 but withdrew due to lack of finances (but because I went for ONE DAY as a full time student, the clock gets reset--total bs). I couldn't find a job to save my life for many many many years--declared bankruptcy back in 2001 due to some very bad advice from the good folks at the National Student Loan Centre.... now trying to pay back my CSL but my other loans are lurking somewhere...they've clawed back my GST/refunds for the last 3 years, but I generally don't get a refund anyway, so it doesn't really matter (much).

What irritates me is that I AM a responsible person--who just had some very bad luck for 5 years or so (like many others). Because I "let" my loans go into default, I wasn't eligible for any debt relief (in fact, I applied for IR before going bankrupt, as I was advised--and was declined...how they could decline someone with NO income whatsoever is completely beyond me). I'm in a better position now, but I still don't have any extra money and spent the last two weeks eating peanut butter sandwiches (only one per day...can't get too indulgent, y'know)...I have no friggin' future because I can't qualify for a mortgage or scrape up enough money to start savings for my "retirement" (the word is complete foreign to me--there will be no retirement, I'm going to have to slave until I die...which might be soon, since I don't know too many people who can live on one pb sammich a day for a long period of time). I am truly "working poor".  My mother cosigned a car loan for me...but in all reality, I can't depend on her to help out forever--and I'm fast approaching 40. I see no future. How bloody depressing.

Why are we treated like criminals??? Anyone with half a brain can see that I've had severe hardship...it's much better now, but it's clearly not optimal. But the minute we can't pay, we automatically get branded as deadbeats and they just effectively dismiss us from any assistance whatsoever. Nope, that's it...you had your chance.

Get a student loan, sell your soul. 


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old hippy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote old hippy Quote  Post ReplyReply Direct Link To This Post Posted: 24/November/2008 at 10:29am
I'm surprised they would lend out $100,000 in student loans.   The interest must be incredible. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote gracie Quote  Post ReplyReply Direct Link To This Post Posted: 24/November/2008 at 8:23pm
Wow! You're not in a very good situation either. I must agree with you...there isn't much for help from what I've seen since graduation. I've been getting loans since 1990, and became educated, but feel like it was a waste when I think about my debt.
 
Lets say if I were to do it again, I sure as hell wouldn't take this route!
 
I hope we all find a way out of this mess.
 
 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote OrlosGirl Quote  Post ReplyReply Direct Link To This Post Posted: 25/November/2008 at 11:45am
Dude,

I would SO get yourself a trustee and file for bankruptcy.  Really.
Trying to do everything He tells me. (John 2:5)
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 25/November/2008 at 3:38pm
Bad advice.
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 gracie Quote  Post ReplyReply Direct Link To This Post Posted: 25/November/2008 at 7:57pm
Thanks for your feed-back!!Smile
How can you say it's bad advice?  It sounds like an awsome plan of action. Sometimes it's the only route to take. I hear you talk about the difficult times one goes through during bankruptcy, and I'm sure there's some truth to that! However, I do know it's aprox. 7 years with bad credit, but that's not so bad considering one has 100,000 dollars in debt. Don't forget that most of us would probably take the rest of our lives to pay it!!! The payment on 100,000 is quite high, and I really am in no situation to pay that kind of payment per month.

So, can you Johnny offer me any solutions to my HUGE debt problem?

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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2008 at 7:25am
To fill in the details.... bankruptcy does not involve an automatic discharge of student loans. You have to prove you acted in good faith and at the end of the discharge prove that paying back the loan will result in hardship... its not automatic... 
 
Bankruptcy Trustees are selling a product....  and a certain number of years have to pass since you were out of school to have your loans included in bankruptcy.  The wording is tricky.. and not all trustees are fully up on the regulations. As a consumer you can not rely only on the advice of a trustee. Ultimately the decision is yours. 
 
There have been tons of posts on this site of people going to bankruptcy trustees and declaring bankruptcy only to find out a few years later that the advice and info that their trustee gave them was wrong.
 
Not all trustees are like that but there has been a high incidence of incorrect advice.
 
If you just graduated, you are ineligible for bankruptcy release of your student loans.
 
Have you checked out Interest Relief? Debt Reduction in Repayment?   One thing for sure, is make sure your loans dont go into default! Get on the phone now and check into Interest Relief!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Madmorrigan Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2008 at 10:03am
Originally posted by Johnny Johnny wrote:

Bad advice.


Agreed...if your only debt is student loans, it is ill-advised to declare bankruptcy as it will do nothing but ***k up your credit rating for years and years to come.

"My credit rating is already ***ked up, so it makes no difference"  I hear you thinking....

Yes, but having SL debt and working through it, v. declaring bankruptcy and having SL debt is completely different. With the former, there are options available--you won't have a stellar rating, but most institutions will be understanding about SL debt, especially if you can show that you were/are able to keep your other debts under control. With the latter, it just shows (on paper, anyway) that you just can't handle anything and, therefore, are a risk that they won't think is worth taking. You will forever carry the stigma--it sounds so fatalistic, but it's soooooo true....there is no true 'clean slate' with a bankruptcy, and it's an albatross around your neck for a very long time.

I had other debt when I declared bankruptcy--I had just gone through a divorce, had no job and was scared 'witless'--so I took the bad advice and did it out of fear and ignorance....but really, it was my SLs that were (and still are) the primary issue. Now, I'm just a former bankrupt with overwhelming SL debt--and I can't get credit on my own.  I will, for the rest of my life, be a 'bankrupt' (don't listen to anyone that tells you it 'drops off' after 7 years--it's supposed to, but those records are public domain and don't think for a moment that the credit lending institutions aren't checking).

Ultimately, you have to make the decision--but I would strongly advise against it. If I had the opportunity to do it again, I wouldn't.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote paulaffleck Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2008 at 4:09pm
This is a great posting, and exactly what is needed with respect to this issue - just some plain old good and honest hard advice.  Sometimes great advice costs nothing!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote cayt Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2008 at 6:02pm
Wow lots of talk about bankruptcy.  First and foremost it is a personal decision based on personal circumstances and it is not for everyone.  I declared bankruptcy in June 2008,  it is my second bankruptcy in my lifetime.  However,  there are many circumstances which led to my decision,  first and foremost a prolonged divorce and much matrimonial property.  I switched jobs,  moved,  experienced marital breakdown and yes had the same wonderful experiences as so many of you with the mysterious lost paperwork that student loans never seemed to receive and therefore missed all of the deadlines and faced reluctance from student loans on lowering any of my payments of approximately 800.00 per month while I was dealing with all of these stressors.  For myself bankruptcy was a viable solution to resolve my marital property settlements but the monies will go to pay towards my student loans and when discharged in February of 2009,  I will still be required to connect with student loans to negotiate a payment schedule. 
While I support Johnny in that bankruptcy is not a quick solution to solve the student loan crisis,  it can be a solution for some.  Reestablishing your credit can be trying but is not unattainable.  I have a secured credit card,  it may not be the most ideal but it has allowed me to have access to credit purchases.  I am currently financing a vehicle,  with permission from my trustee as I have maintained good standing with the trustee throughout my bankruptcy.  I will have to pay more interest than a standard bank loan but after twelve months can apply to have my loan refinanced.  It's a start and that's what is important. 
When I graduated from university I had no credit except a visa card with a low minimum.  Although I obtained employment immediately upon graduating,  had no defaulted loans etc.,  maintained all of my student loan payments,  I could not get financing for a vehicle or home because I did not have credit.  I then went to secondary mortagage brokers and worked towards establishing credit that way. 
I am not promoting bankruptcy in any way.  I do however believe that in some circumstances it may be necessitated and must be considered carefully.  Reestablishing your credit is possible but it will take time and effort. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote gracie Quote  Post ReplyReply Direct Link To This Post Posted: 26/November/2008 at 8:24pm
Thanks again for more feed-back to my 100,000 dollar debt regarding bankruptcy!!!
 
I must say there are some of you completely against bankruptcy, and I'm sure for good reason.
 
I'll have to look at other options to explore. I believe I read on this site about offering to pay a certain portion of the loan, and they take care the rest....Not sure if I'm off track here, but if somebody wants to fill me in, I'd really appreciate it!Smile
 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 28/November/2008 at 7:22am

Bankruptcy is 18th century. Today's financial problems are 21st century. Bankruptcy is not effective. Generation Y has grown up with a lot of exposure to bankruptcy in one way or another (more so than the boomers). In the youthful days of the boomers, bankruptcy was talked about very little and kept private. A bankrupt boomer was not likely to come out and say, "hey guys, guess what/ I went bankrupt!. You should all give it a try!" Bankruptcy was more of an embarrassment or disease that no one wants to discuss. Today, bankruptcy is talked about as if it is latest fashion trend that more and more people want in on.

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 old hippy Quote  Post ReplyReply Direct Link To This Post Posted: 28/November/2008 at 10:34am
Yep...and that "latest fashion trend" attitude was probably one of the reasons they changed the bankruptcy laws in the first place. 
 
I still can't figure why they would let someone borrow $100,000 in student loans - even a brain surgeon would have difficulty making payments.  That amount is a real eye-catcher...I haven't seen many who have more debt than I do because I maxed out.   And from what I can remember, 10 years was the max # of years anyone was allowed to borrow. 
 
Gracie's been collecting since 1990 - so maybe the rules have changed.  Not many details....I also rec'd the max amount each year as a single student with no support.  But maybe Gracie has dependents.  She mentions that the payments on $100,000 are "quite high" - how high are they?  She seems way too cheerful for someone who is $100,000 in debt. 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 28/November/2008 at 1:50pm
Yes, it was a contributing factor. Not to mention that a lot of bankruptcy firms were promoting insolvency to students as a way out of student debt. Yes, that is right. So, attitude and the abuse of insolvency were the the reasons.
 
How can they allow someone to borrow 100K? That is likely combined with private loans or lines of credit, perhaps. Nonetheless, the system requires people to be in debt in order to profit. It is a business. Bankruptcy is a business, and a VERY wealthy one at that. The non-profit debt poolers (bankruptcy in disguise) are as wealthy. THey can each afford millions of dollars advertising on televison, but they say they don't profit. IMPOSSIBLE. THey get a commission from the creditors, which is quite lucrative (which makes them collection agencies). With these programs, people are actually left worse off! Doesn't that give you a headache thinking about it? LOL
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 Goodgrief Quote  Post ReplyReply Direct Link To This Post Posted: 02/December/2008 at 5:12am
I've just been reading the posts today, and I find your posts to be very helpful Johnny!
Here's my situation, and I'd like your thoughts:
I took out a Quebec student loan 10 years ago. I started to pay it back, but being out of work after school, was unable to pay. later on, I simply forgot about it to tell you the truth - by that time I'd relocated to Toronto. I still get calls from the collectors up to this day. For some reason, the calls have been occuring more recently in the last few months. They recently sent out a pretty harsh letter, declaring a recommendation of legal action.
I'm not sure what rights they have? And what I can do?
Do I still have to pay at this point? Unfortunately I'm not in a position to pay the ever increasing amount. Now it's about $3500. It started out as a $1200 loan.
 
Can they take legal action against me?  Can I declare bankruptcy to avoid this?  Do i have to pay the amount that the rep tells me? Do you recommend sending post dated cheques?
 
Your help is a appreciated.
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 02/December/2008 at 7:58am
I cannot recommend anything to you unless you are a client. Limitations for Quebec student loans are 5 years, to be extended an additional five if the director's or minister's office catches you before barring, and issues out a formal demand (otherwise known as a final demand).
 
Word of advice - the last thing you want to tell any student loan provider or debt collector is that you "forgot about it". They really dislike it when people say this, even though it does happen. They will find ways to make you think about it everyday from there on.
 
Can they sue you? Of course they can. Will they? Don't know. Can you declare bankruptcy? Anyone can declare nbankruptcy. The problem is having it discharged. Student loans seem to slither away from bankruptcy proceedings.
 
If you need help, you will have to become a client. THe assistance you are seeking is not something that can be delivered over a public web forum.
 
Best.
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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question
I have $40,000 in student loans graduated in 99 I believe maybe 2000. I went through a long divorce etc still going throught it actually. Thing is I ended up going bankrupt in 03/04 discharged in July 04. My student loans were not included obviously, however I have in the last year got copies of my credit report from Trans and Equifax. Both say discharged in Bankruptcy. One say I think Equifax " writin off" and included in bankruptcy.
Date of last activity was in 04 july I think. The collection agancy used to call me, I ignored them, they haven't called in two years now.
Have they been written Off or will they be back to harass me? . Also, I recieved me income tax refund last year so they haven't takin that. I just don't want to contact them, because then it would reset the timer and I went to a mortgage broker a few months ago and I just have to wait til the drop off the equifax report.
 
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