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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euland21 View Drop Down
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    Posted: 08/June/2010 at 10:17am
Hi,

I had a student loan in 2000 thru OSAP but was cashed in at Scotia bank. I have had low paying jobs since leaving school and i've only made over $30000 once since then. i am currently a single mother of two, unemployed and on e.i for another 2 mths. I have tried making payments through credit counselling over the years and then I couldn't anymore. I received a call from ARC and spoke to two very unpleasant representatives. They hve threatened to file a judgement against my possible future employment? I have decided to file for bankruptcy because I have no other option at this time. what happens if they file a judgement before my bankruptcy? What should i do now? I can't afford any form of payment.
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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: 08/June/2010 at 11:54am
What did credit counselling do to help you when you couldn't pay them any more??????
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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euland21 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote euland21 Quote  Post ReplyReply Direct Link To This Post Posted: 09/June/2010 at 4:16pm
nothing
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 10/June/2010 at 3:49pm
I figured. THey don't counsel anyone. They use "counselling" as a measure to make you feel like you are receiving something that protects your best interest. It is SO far from the truth. I sympathize with you, mate.
 
Johnny
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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blackcat View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote blackcat Quote  Post ReplyReply Direct Link To This Post Posted: 10/June/2010 at 4:43pm
Ugh, same thing happened to me with ARC collecting for Scotiabank. I was unfortunately scared into bankruptcy. :(  You have time to file, first ARC must send something to you and you have like 2 or 3 weeks to respond (I think 3....) so you ignore it and use that time to file bankruptcy before it can go to court. The day the trustee files for you they can't proceed anymore.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote MtCurrie Quote  Post ReplyReply Direct Link To This Post Posted: 13/January/2013 at 4:17am
However, I have one question for you Johnny that I have not seen in this forum. If a risk-sharing loan is sold to a third party (ARC), is the protection from bankruptcy, given by the Act legislating the loan, transferred with it? Since the 3rd party is not a bank (I was told so by one of the many ARC's employee), hence cannot or would not fulfill the obligations set by the Act in terms of collection of the loan (income testing,  can't ask for full payment, must work with the debtor, etc.), how could the 3rd party receive the benefit (i.e. prrotection) without meeting the obligations set by the Act? I'm sure SB sold this loans at a premium because of the protection these had.

The way my debt was handled by Scotia Bank's student loan immediately centre after I filed bankruptcy, indicated early on to me that my loan had been sold to ARC (I had an up to date account with the Scotia Bank, I still do though is now dormant, ARC doesn't have my correct contact details even today). While I paid the federal and provincial portion of my loan in full,  I couldn't, though I was willing and able if given the ten years I was entitled according to the Act, do the same with risk-sharing portion held by the SB because it and its agencies refused to work with me. I gave up trying and now my loan can't be recovered, so I just ignore ARC when it pops up once in a while.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 13/January/2013 at 6:14am
Student loans are not "sold" to third-party collection agencies. They are simply assigned to them for collection. They are then paid a percentage of what you pay as a commission. Their commission rate depends on the student loan provider, and of course the age of the account. Rates range from 15% to 40- sometimes 50%.
 
Now, the government of Canada can purchase a federal risk loan if the bank submits it for "put back", which is a CSL2 initiative. However, they can;t buy them ALL back, only a very small percentage of the bank's losses in any given year.
 
Student loans have their place and conditions set out int he BIA. The legislation applies to it no matter where the loan be go. The fact remains that your loan was not "purchased" by ARC. Only assigned for collection.  
 
One thing to consider - the legislations describe the law. The problem is that the banks, collection agencies, and even the government does not abide by it a lot of the time. They find ways to manipulate it to their advantage because of the easy access to powerful lawyers they use to protect their best interests. That is the real power they have over you and I.  It is an unfair system.
 
 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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