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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Lululuv View Drop Down
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    Posted: 19/September/2010 at 8:47am
Hello Everyone, 

I have a quick question. I had recently reapplied for RAP for the second time. The first time I was approved and only had to pay 313.74/month on my federal student loan and $0 on my provincial loan. I'm not quite sure how that worked considering my gross income for the month at the time was $3505. Mind you.. net, you bring home almost 1/2 less than that. Anyway, I have reapplied after the 6 months.. and my federal is now saying that my payment is $542/month and the provincial hadn't got back to me yet. When I use to "Repayment Ass. Calculator" online, it says my affordable monthly payments for federal are $430/month and $142/month for provincial. I'm just wondering how they came up with $542/month for federal this time around when it was so much less last time. And I do have in mind that my gross income is increased by $300/month as oppose to last time, but even with that, the "Repayment Ass. Calculator" says my "affordable payment" is less. And I was talking with a representative before I submitted the application, and she said pretty much the same as the repayment ass. calculator. Because my federal payment that they have calculated is pretty much my "affordable monthly payment" for both prov. and federal loans combined when I use the repayment ass. calculator. 
Just wondering if this happened to anyone else?? If the administrator happens to read this, could you possibly respond also. You seem very knowledgable of the topic. Thank-you very much!
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PD View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote PD Quote  Post ReplyReply Direct Link To This Post Posted: 09/April/2011 at 1:09pm
It could be as simple as they screwed up.  What a shock that would be.  LOL.  Appeal immediately.  Go through the executive customer service # at 1-866-788-0388 and ask them how it was calculated.  Here is the complicated formula that is used to determine how much you can afford to pay.  This use gross income not net.


where

A is the ratio, in relation to all loans referred to in paragraph (1)(b) and provincial student loans, of the borrower’s outstanding principal to the borrower’s outstanding principal plus the outstanding principal of those loans for which instalments are due for any spouse or common-law partner of the borrower,

X is the borrower’s monthly family income,

Y is the monthly income threshold for the borrower’s family size determined in accordance with Schedule 1,

Z is the monthly increment for the borrower’s family size determined in accordance with Schedule 1.

SCHEDULE 1

(Subsections 19(2) and 20(2))

MONTHLY INCOME THRESHOLDS AND INCREMENTS

Family Size

Monthly Income Threshold

Monthly Increment

1

$1, 684

$250

2

$2, 631

$350

3

$3, 399

$425

4

$4, 009

$500

5 and over

$4, 569

$575

This is cut and pasted right out of the actual laws. 


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