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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Forum LockedStatute of Limitations & Bank Risk Student Loans

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    Posted: 31/July/2019 at 4:02pm
Hi there,

Federal statute of limitations on student loans: 6 years

I am curious about the limitations on Federal student loans. If I have been out of school for 7 years does that mean it is past the statute of limitations?

I hear I can now apply for bankruptcy or file a consumer proposal now that I am 7 years out of school. But do I need to wait another 6 years for it to be past the statute of limitations?

"Income tax or GST rebate seizures are not admissions of liability." In other words not considered acknowledgment, right?

Thanks for the help.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote LisaSSD Quote  Post ReplyReply Direct Link To This Post Posted: 28/May/2019 at 9:41pm
NEW!!!! Solve Student Debt now offers Statute of Limitations testing and analysis modules for Canada Student Loans and Ontario Student Loans (OSAP).

For a limited time, modules are available for as low as $39.95!! Register now!

www.solvestudentdebt.com/our-services/tools-and-learning-modules

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 26/April/2019 at 3:39pm
There are exceptions for Ontario student loans, and limitation issues are quite complex. Assuming anything is never a good idea when it involves Ontario student loans - or federal for that matter. 

If you are looking for coaching and advice about how you should approach this situation it is not something that can be done on a public forum. If you want to book 30 minutes ($30.00 CAD) or an hour ($60.00 CAD) to speak with someone, you can send an email to admin@solvestudentdebt.com to book an appointment for a time that works for you. 
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 westcoastdee Quote  Post ReplyReply Direct Link To This Post Posted: 18/April/2019 at 9:04pm
Hi!
Just found this site and I was hoping I could get some clarification.
After checking my credit on credit karma I saw a $20,000 debt which looks like a student loan that went to collections in 2017. I havent been to school since the late 90's and from the looks of things I stopped paying in 2004. 
Am I correct to assume that any ontario student loan can be collected at any time no matter how old and even though I have had no communication with any collectors?
Is it a good or bad Idea to get an equifax credit check??
Thanks!

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Post Options Post Options   Thanks (0) Thanks(0)   Quote bladerunner Quote  Post ReplyReply Direct Link To This Post Posted: 29/January/2018 at 2:27pm
CRA_RSO I don't know why it keeps changing to car-rso sorry.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bladerunner Quote  Post ReplyReply Direct Link To This Post Posted: 29/January/2018 at 2:26pm
Also a large portion of the article is about the Car-rso program the ombudsman even states that he finds the legality of using the Car-rso program after the sol expired as questionable and says its trying to collect debt through the back door when it can't through the front.  Thats why I brought up the article, because the ombudsman has the power to give advice to change legislation to law makers, which it does at the end of the article whether they heed that advice is up to the government.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bladerunner Quote  Post ReplyReply Direct Link To This Post Posted: 29/January/2018 at 2:19pm
If you read what I wrote, you would see that I stand it was a article that was written about social services by the Saskatchewan ombudsman, as it had to do with the car-rso program also.  As we are talking about the Car-rso program which applies to all crown debt, but each department has different rules and acts regulating them.  As far as the student loan program goes the Cra-rso program cannot be used after the SOL has expired, but not so for other crown debt, I hope that clears thing up for you.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote tlg Quote  Post ReplyReply Direct Link To This Post Posted: 26/January/2018 at 2:37pm
Bladerunner: the article you refer to entitled "A Question of Fairness" written by the Saskatchewan Ombudsman refers to overpayments collected by the Ministry of Social Services from Income Assistance clients. It has nothing to do with Student loans let alone RSO, and that link is https://www.ombudsman.sk.ca/uploads/document/files/a-question-of-fairness-en.pdf. Please try to post accurate information and if there is a direct link to an article, share it in your post. There is too much confusing information for overburdened people out there already. Thanks.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote iihonest Quote  Post ReplyReply Direct Link To This Post Posted: 25/January/2018 at 10:41am
Hi, I have a 10 year old student loan from bc and Canadian govt. I have no way of paying the loan back. I have considered bankruptcy since my credit rating is so low due to the loan. Its not the option I would like to go I had to do that years ago and with my financial situation looking grim in the future I contacted both the cbv collections for provincial loan and the Canadian govt. They are both sending me forms to fill out one for hardship (Canadian) the other from CBV is financial report. If I fill them out and return them then I am claiming and restarting the 6yrs from what I am understanding.  If I dont do anything about these loans my credit score will always stay horrible :S suggestions pls. I acknowledged a payment in 2012 on the bc loan however this is year 6 in may if that makes a difference. I am at a loss at what to do I am in such a bad spot and would just like to clear this up to get a little bit of credit and maybe reducate myself with the potential to actually work;S suggestions welcome. thank you in advance
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bladerunner Quote  Post ReplyReply Direct Link To This Post Posted: 13/January/2018 at 8:40pm
The cra-rso for most provincial debts owed to the crown can be collected using that program indefinitely, but not for federal student loans it ends after 6 years.  I think like you said in another post a while back that someone will have to challenge that in court to set a precedent and get it changed. Only bankruptcy or a consumer proposal can stop the offset of refunds at this time I believe.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bladerunner Quote  Post ReplyReply Direct Link To This Post Posted: 13/January/2018 at 8:33pm
And just to add A refund seizure will restart the SOL for money owing for income taxes but not for student loans it has to be a voluntary payment.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bladerunner Quote  Post ReplyReply Direct Link To This Post Posted: 13/January/2018 at 8:32pm
The student loan is covered under the student loan act, so only what is in the act applys to student loans no other act trumps that act. The act states only a payment or a written letter can restart the SOL on student loans and that after the SOL is done they cannot sue you or try to collect using the CRA_RSO refund or get offset program. Read the act for yourself, I hope this clears things up for you.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 09/January/2018 at 6:40am
Continued ... 

So, TLG, 

In one post you wrote; 

'I would have just received $4000 in tax refunds, however, it was just clawed back due to outstanding/defaulted student loan payments I had been unable to make as I have been disabled and unable to sustain employment, and since graduating have never lived above the poverty line. I am not a person who does not pay their bills, but I am a person who could really have used these refunds at this time of year. Thanks in advance.'

and, shortly after this, you posted; 

'The SOL expired in 2011. The legislation in Saskatchewan is different and they can collect via RSO for the rest of my life if they want to.'

Since you claim it is statute barred, and certain of it, and they continue to take your income tax rebates, what you need to establish is this - 

1. Is their position that the seizure of these rebates is considered to be an admission of liability, thus striking out any limitations, and,  

2. Is their definition of the act of set-off considered to be that of what defines 'garnishment', and; 

3. Does this mean that there are no limitations now that bind the province of SK 

5. Are they basing all of this on any other jurisprudence in Canada, case in point - Burbank vs Garbutt, 2012 Supreme court of BC. 


Paragraph 17 in Burbank v. Garbutt speaks to payments made as the result of garnishment proceedings orchestrated through third parties, who in effect act as the agent of the creditor, have been held to constitute payments for the purposes of s. 5(2)(a)(ii) [of BC's former Limitation
Act], having the effect of confirming the cause of action.

Also, the case in Toronto tax court, Simone vs Canada 


Paragraph 36 in Simone v. Canada found that the set-off of a federal Income Tax Act refund under S164(2) of that Act renewed a limitation period. 


 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 09/January/2018 at 4:20am
Acknowledgment, in a form that fits what i copied right out of the legislation is cause for a limitation period to be reset. 

Here it is again; 

Acknowledgments and part payments 

11 (1) If a person acknowledges the existence of a claim for payment of a debt, for the recovery of property, for the enforcement of a charge on property or for relief from enforcement of a charge on property, the act or omission on which the claim is based is deemed to have taken place on the day on which the acknowledgment was made. 

(2) For the purposes of subsection (1), an acknowledgment: 

(a) subject to subsections (3), (7) and (8), must be in writing and must be signed by the person making it or the person’s agent; and 

(b) must be made, before the expiry of the limitation period applicable to the claim, to the claimant, the claimant’s agent, a receiver, a receiver-manager or an official receiver or trustee acting pursuant to the Bankruptcy and Insolvency Act (Canada).

(3) In the case of a claim for payment of a debt, part payment of the debt by the person against whom the claim is made or by the person’s agent is deemed for the purposes of subsection (1) to be an acknowledgment. 

(4) Subsection (1) applies to an acknowledgment of the existence of a claim for payment of a debt even though the person making the acknowledgment refuses or does not promise to pay the debt or the balance of the debt still owing. 

(5) An acknowledgment of the existence of a claim for interest is deemed for the purposes of subsection (1) to be an acknowledgment of a claim for the principal and for interest falling due after the acknowledgment is made. 

(6) An acknowledgment of the existence of a claim to realize on or redeem collateral pursuant to a security agreement or to recover money with respect to the collateral is deemed for the purposes of subsection (1) to be an acknowledgment by any other person who later comes into possession of the collateral. 

(7) A debtor’s performance of an obligation pursuant to a security agreement is deemed for the purposes of subsection (1) to be an acknowledgment by the debtor of the existence of a claim by the creditor for realization on the collateral pursuant to the agreement.

 (8) A creditor’s acceptance of a debtor’s payment or performance of an obligation pursuant to a security agreement is deemed for the purposes of subsection (1) to be an acknowledgment by the creditor of the existence of a claim by the debtor for redemption of the collateral pursuant to the agreement. 

(9) An acknowledgment by a trustee is deemed for the purposes of subsection (1) to be an acknowledgment by any other person who is or who later becomes a trustee of the same trust. 

(10) An acknowledgment of the existence of a claim to recover or enforce an equitable interest in property by a person in possession of it is deemed for the purposes of subsection (1) to be an acknowledgment by any other person who later comes into possession of it.

So, if you acknowledge it in accordance to what is described above, you risk undermining any case you have in respect of a limitation issue. This is what a lawyer will tell you. i am surrounded by them day to day so I know. 

As for set-off of income tax and-or GST rebates, the question of fairness is certainly one to be raised in a case whereas a provincial government continues to gaff these rebates after a limitation issue presents itself. The BC government has found a loophole, for one. If it is happening with SK provincial loans and other debt owed to it, then it is up to the person who is losing this money to file an action and see what comes of it. 

When a federal student loan is statute barred liens on tax and GST rebates is immediately lifted. 

In the federal government does not take the same position on the matter as the province or provinces that simply continue to collect rebates long after a limitation issue comes. It is their policy and procedure to remove. a barred debt is considered closed and no longer recoverable by any forcible means. 

Both creditor's rights and internal legal agents that work in-house with government are in the business of finding loopholes and ways of undermining what benefits you as the one who owes this money, and take away any advantage of safeguard and protection in your favor. Manipulating the law and stretching it to show that it is unfair to the system is what they do best.

The system also knows that the average student loan borrower, especially who is in crisis and unable to pay it, does not have the financial resources to combat it legally. The result of this is clear. Those who are unable to fight it legally ate stuck with having to suffer the losses. 

One example I will give you is how a provincial government has allegedly been able to combat set-off removal and continue to collect. 

BC government has been able to secure it's best interest somehow by securing an acknowledgement or admission of liability through CRA set-off, 

Governments care about money and recovering it by whatever means they can. The system of law and justice is freaky in this country. 







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 tlg Quote  Post ReplyReply Direct Link To This Post Posted: 08/January/2018 at 10:33am
I have spoken with two solicitors who have both advised me that any acknowledgement of a defaulted, stat barred SK student loan would re-start the 6-year limitation period, thereby reopening the potential for them to undertake other legal action (in addition to CRA setoffs) to enforce and collect the debt.

All of this conflicting information is certainly not making the issue easier.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bladerunner Quote  Post ReplyReply Direct Link To This Post Posted: 08/January/2018 at 10:07am
The Ombudsman of Saskatchewan wrote a great article on the CRA_RSO program and he states there is a legal question on the fairness on the program going on indefinitely after the SOL has passed. Its titled A QUESTION OF FAIRNESS.  Give it a read as this program affects not just student loans but overpayments by EI, social assistance, Grant programs, Provincial training allowance and others.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 08/January/2018 at 9:33am
If this is happening it is up to the borrower to press them to stop. 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote bladerunner Quote  Post ReplyReply Direct Link To This Post Posted: 07/January/2018 at 6:50am
The Saskatchewan Financial administrative act 1993 section 42 states Notwithstanding another act the government has the right of set off, the other act is the student loan act which says they can no longer collect on that debt after SOL has passed.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 06/January/2018 at 8:52am
One day someone will file  suit challenging that to set new jurisprudence perhaps. 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 06/January/2018 at 8:50am
Federal is different than the provinces yes, 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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