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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marriedwithdebt View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote marriedwithdebt Quote  Post ReplyReply Direct Link To This Post Posted: 25/May/2010 at 6:54am
I had to double check! Accordng to this, my reduced monthly payments go towards the principal and the government pays the interest...yay.
 
I've copied a section from the Canlearn website: http://www.canlearn.ca/eng/after/repaymentassistance/rpp.shtml
 
How does the Repayment Assistance Plan work?
Stage I: This stage applies to the first five years.
  • For five years student loan borrowers who qualify will make affordable payments (or no payment) toward their loan principal. Paying the student loan principal first reduces the total debt.
  • The Government of Canada will cover the interest amount owing that the borrower’s affordable payment does not cover.
  • Borrowers will not make payments exceeding 20 percent of their income towards student loans covered by the Repayment Assistance Plan.
  • Borrowers could be enrolled in this stage for up to 5 years during a 10 year period.
  • Check with your province or territory to find out if your provincial or territorial student loans are covered under the Repayment Assistance Plan.

Stage II: This stage is available for borrowers who continue to experience financial difficulty. It starts once the borrower completes Stage I, or has been in repayment for 10 years after they leave school or complete their studies.

  • The Government of Canada will continue to cover the interest and begin to cover a portion of the student loan principal amount (i.e. the difference between the affordable payment and the required payment).
  • The balance of the loan should be gradually paid off so that no student loan debt remains after 15 years of leaving school (or 10 years for borrowers with a permanent disability).
  • Throughout this period, the same eligibility criteria, application process and affordable payments as in Stage 1 will apply.

 

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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: 25/May/2010 at 11:44am
I have hypothetical questions please..
 
Stage II:  If someone has been in repayment for 14 years and then applies for the RAP Stage II and meets the eligibility criteria, do they only have to pay for another year?  And then their student loan (whether paid off or not) is gone?  Is it possible for someone to apply for the RAP in their 14th year of repayment?
 
Just wondering how the balance of the loan could be "gradually paid off" in one year, if there is a significant balance?  Or would the student loan borrower HAVE TO be in Stage II for the remaining five years?  Which would make the "so that no student loan debt remains after 15 years of leaving school" untrue.
 
thanks
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SolveStudentDebt View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 26/May/2010 at 2:02am
I don't think the system could even answer this one too intelligently. LOL 
 
My interpretation is that if someone applies for it's assistance after being in a repayment plan that was made without the use of the RAP, the applicant would have to start with stage one and go through the motion upon qualification. In it's definition it does state that no student loan debt remains after 15 years of leaving school but this benefit only becomes available once engaged in the RAP. In other words that 15-year wait begins once you are on this program. If you were in ordinary repayment prior to it, the time that you were on the ordinary structure does not reduce the 15-year RAP term. It would be interesting to see stats (if there are any) that show the number of applicants and those actually on RAP.
 
Johnny
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 fiona1985 Quote  Post ReplyReply Direct Link To This Post Posted: 28/August/2011 at 11:44pm
Originally posted by skepticgirl skepticgirl wrote:

I've been out of school since the spring of 2007 and I owe $ 76,000 in debt to the gov't.  I recently applied for the Repayment Assistance and they calculated that my affordable payments are about $ 325.00 per month as opposed to the $ 996.00 that I would be paying without the assistance.  That's great, however I am still concerned that they may change things in the future.   

i believe u'll be paying in accordance with what has been before the introduction of new changes. so don't worry about that.
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