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: 22/September/2010 at 4:06am

Here's my new letter!


Thank you for your reply but the question was not answered for borrowers who are not returning to school and are not applying for RAP.

If someone is not returning to school and is not applying for RAP, can you please provide a mechanism to rehabilitate risk shared or guaranteed loans. 

Please remember that (according to your own report) in 2003 the payment system went off line and a higher than usual default cohort occurred, also there were numerous mistakes and documents lost by the NSLSC causing defaults as documented in numerous newspaper articles.  These people deserve a remedy.

Again, to clarify, please come up with regulations or provide a mechanism for the rehabilitation of these loans if the person is not going back to school or applying for RAP.  These people suffer abuse of collection agencies, have their credit rating destroyed, and the collection agencies continue to harass for more money, and do not respect the payment arrangements in place.  

I appreciate your efforts at answering my questions, but I would appreciate getting a direct answer. If there is no mechanism in place, then there needs to be one. 

Regards,

Mark O'Meara

 

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Follow this thread!  If you are in collections and want to rehabilitate your loan, HRSDC says banks are obligated to take back from collections!   BUT ONLY IF YOU ARE RETURNING TO SCHOOL OR APPLYING FOR RAP!

http://www.canadastudentdebt.ca/forum_posts.asp?TID=5485&KW=Letter+Sent&title=letter-sent-to-hrsdc

So I have to write to them again and say "If someone is not returning to school or applying for RAP, how can they rehabilitate their loans?"

Here's the most recent letter I've received about this!

Dear Mr. O'Meara:

Thank you for your electronic correspondence of August 24, 2010, regarding difficulties that some borrowers may encounter in rehabilitating defaulted loans.

As you are aware, Canada Student Loans borrowers in default may apply to have their Canada Student Loans (CSLs) returned to good standing through the rehabilitation process.  The Canada Revenue Agency (CRA) administers the collection of outstanding student debt for the Canada Student Loans Program (CSLP) for those loans that were guaranteed, direct and some risk-shared loans returned under an agreement with participating financial institutions.  CRA officials receive requests for rehabilitation either directly or through the CSLP.  They then ensure that the requirements of rehabilitation, 6 monthly payments and all accrued interest paid, before referring back to the Program for approval.

In the case of risk-shared loans, participating financial institutions are obligated under the Canada Financial Assistance Act and Regulations to offer the option of rehabilitation should an individual wish to return to full time studies or participate in the Repayment Assistance Program (RAP).  In the event that a private collection agency does not wish to forward a request for this process, the borrower may contact the bank directly or the CSLP and the request will be forwarded to the appropriate department of the financial institution. 

All collection agencies are provincially regulated and I note that your website provides contact information for individuals that may have experienced difficulties with the agency assigned to their account.

Thank you once again for taking the time to write on behalf of students.

Sincerely,

Senior Director
Canada Student Loans Program
Learning Branch
Human Resources and Skills Development Canada

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Mark O'Meara
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