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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    Posted: 14/January/2009 at 5:04am
New Payment Assistance Plan Coming - from Canlearn Website

Student financial assistance - Repayment Assistance Plan


Effective fall 2009, a new student loan Repayment Assistance Plan (RAP) will be in place to make it easier for student loan borrowers to manage their debt by ensuring that they can afford their loan payments.

The Repayment Assistance Plan is an optional program for students facing difficulty in meeting their student loan payments. The Repayment Assistance Plan ensures that:

  • No borrower will be required to make a student loan payment above an affordable level.
  • No payment will be required from those with very low incomes.
  • No borrower will have a repayment period exceeding 15 years.
  • Eligibility criteria will be simple and standardized, making it easier for borrowers to understand and predict the requirements and obtain the support they need.

The Repayment Assistance Plan replaces the Interest Relief and Debt Reduction in Repayment programs. Current Interest Relief and Debt Reduction recipients will transition into the new Repayment Assistance Plan.

Under the Repayment Assistance Plan, the Government of Canada will agree not to collect the difference between what a borrower can afford to pay and the borrower’s normal monthly loan payment.

For the first five years of repayment, eligible borrowers will make either no payments or affordable payments based on their income towards their loan. These affordable payments will never exceed 20% of their income. If borrowers are still in difficulty after five years on RAP, more generous assistance will become available. Borrowers will continue to make their affordable payments, which will be applied towards the principal of their loan first, while the Government will make the remainder of the payment. In this way the entire loan will be repaid within 15 years. Throughout this period, borrowers will face the same application process and eligibility criteria and will make affordable payments based on the same principles, so the process will be seamless from start to finish.

Human Resources and Social Development Canada is currently developing the policies to determine how full-time and part-time loans will interact with respect to the Repayment Assistance Plan.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 14/January/2009 at 9:45am
This topic is an announcement only... A new forum for discussion of the RAP program has been created for further discussion and announcements.
 
The details of this program are still forthcoming - I'll keep searching for new info as it comes available.  At least they appear to be trying to do something to help. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 02/April/2009 at 5:32am
OK.... its April...Students are graduating this month... where are the details of what help will be available to them?   None.... how can these graduates plan for paying back their loans if they dont know any details about the new RAP program...
 
Also, the canlearn site says they will use Gross Income... and last years salary.....
How will people who've lost their jobs or had reduced hours apply if they use the previous year's salary?
 
New Program same mistakes....      
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 02/April/2009 at 5:34am
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 29/April/2009 at 5:50am

Dear Mr. O'Meara:

 

 

 

I am writing with regard to your electronic correspondence of April 2, 2009, in which you posed a number of questions about the Repayment Assistance Plan (RAP).

Here's a reply to a letter I sent... 

 

I am aware that you disagree with the Program's use of the borrower's gross income in determining eligibility for the RAP.  That said, I assure you that the eligibility formula takes a measure of expenditures, including estimated taxes, into consideration when establishing the borrower's affordable payment. 

 

In terms income used to determine eligibility, the borrower signs an attestation for their expected income for the next six months and the borrower may be asked to substantiate this by providing further documentation.  This would allow the assessment to account for significant differences, such as loss of employment.

 

Lastly, the 15 year repayment period will apply to all eligible borrowers whose loans are in good standing.  You may be interested to learn that an on-line Repayment Assistance Estimator is now available at www.canlearn.ca <http://www.canlearn.ca/>  which enables users to determine the likelihood of their eligibility for the new RAP.  Information about the RAP is posted on the site as it becomes available.  I encourage you to visit the CanLearn regularly. 

 

Thank you for writing.

 

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