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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bluemusickid View Drop Down
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    Posted: 10/April/2012 at 4:58am
I found out that I'm eligible to get my loan transferred from CRA collections to NSLC. I'm just wondering whether I should actually apply for this as I'm not seeing the benefits of it. Sure, I'll be eligible to get my tax refund and apply for future student loans, but I don't mind having tax refund money go to student loans and I have absolutely no plans to take out more student loans!

Does anyone know how will the rehabilitation be reported to the credit bureaus? Currently, my combined Canada-Ontario loan shows several 90+ days of missed payments, but those age to 6 years and fall off very soon. So it might be better just to keep the loan with CRA collections.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 10/April/2012 at 5:38am
Being out of default means that you might be able to apply for the Repayment Assistance Program should at some time you need it.  I think it is better to have your loans with NSLSC than with the CRA.

I'm not sure about the Credit reporting issues, perhaps someone can answer that...
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bluemusickid Quote  Post ReplyReply Direct Link To This Post Posted: 10/April/2012 at 7:14am
Forgot to mention that CRA doesn't report anything to the bureaus! 

It seems like a mixed bag, because NSLC will report payments and allow me to build good credit whereas keeping it with CRA will allow me to have unreported debt and potentially better mortgage down the road.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote footloose Quote  Post ReplyReply Direct Link To This Post Posted: 11/April/2012 at 1:37am

It is the policy of the Canada Revenue Agency ( CRA ) that when a defaulted student loan is assigned to them for collection that this information is not reported to either Equifax or TransUnion.  As a result, when a student loan is subsequently rehabilitated and is later returned to the NSLSC, that too is not reported to either Equifax or TransUnion.

 
  
Educating one Consumer at a time
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 11/April/2012 at 3:48am
But will the NSLSC report it when they send it to the CRA? 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bluemusickid Quote  Post ReplyReply Direct Link To This Post Posted: 11/April/2012 at 4:00am
footloose - CRA will not report a returned loan to NSLSC; but  NSLSC has said that they will report monthly payments to TU/Equifax once it goes back to them

admin - after the loan was transferred to CRA, NSLC did report account as closed/transferred 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote kenny Quote  Post ReplyReply Direct Link To This Post Posted: 15/January/2013 at 4:15pm
First time poster, I greatly appreciate all the advice that's given on here, it certainly makes you feel less alone!

I'm in a very similar situation to the one described here. The federal portion of my loan was transferred back in 2009. On the Equifax report, it's listed as "transferred and sold" with a 0 balance. I've been told by a couple friends at the bank that this basically means I won't be able to secure a mortgage/credit card as this is the only credit item I've ever dealt with.

I'm currently leaning towards rehabilitating my loan (interest accrued + 2 months of payments). My question would be what would happen to the record currently on my file? If placed back in good standing, would it show that it was previously in default? Would they change the date of last activity to 2013 and mess up my credit for the next 7 years?

Any advice is greatly appreciated. Thanks in advance!
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Post Options Post Options   Thanks (1) Thanks(1)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 16/January/2013 at 3:00pm
If the student loan is rehabilitated, and the loan provider reports to the bureau, the item has to be reported correctly.
 
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 kenny Quote  Post ReplyReply Direct Link To This Post Posted: 18/January/2013 at 6:09pm
Let's assume that it gets rehabilitated and reported correctly. Will all negative records (essentially missed/late payments prior to default) be wiped clean 6 years from 2009, or 6 years from the rehabilitation date?

Thanks again.
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Post Options Post Options   Thanks (1) Thanks(1)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 20/January/2013 at 2:21pm
Ther limitation period in respect of credit reporting is 6 years, as per the policy of Equifax. Trans Union might have a similar policy in place. Inquiries remain for a max of 3 years.
As for previous delinquency patterns (30,60,90, 120 day narratives), I believe the drop off after a short while after it is brought up to date and a satisfactory payment history is established. That is my understanding.  
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 (1) Thanks(1)   Quote Madmorrigan Quote  Post ReplyReply Direct Link To This Post Posted: 21/January/2013 at 2:12am
This is incorrect.....both agencies have an internal policy to keep the last 5 inquiries on your report. I learned this after fighting with both of them to remove inquiries that were over five years old. They will not be removed, no matter how much you badger them. The only time they will disappear is when you have a new inquiry to replace the old ones.

The same goes for negative information past 6 years--oh, sure....they SAY they'll remove it, but they won't. They explain it as "a more complete picture of your credit history". TransUnion, specifically, states their policy is to keep any information, positive or negative, on your account for up to 20 years.

Sorry to burst bubbles, folks....but we're all screwed in perpetuity and there is nothing we can do about it. I even wrote the Ministry of Consumer and Business Services and they basically said there was nothing to be done. Awesome.
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Post Options Post Options   Thanks (1) Thanks(1)   Quote emerald Quote  Post ReplyReply Direct Link To This Post Posted: 21/January/2013 at 10:26am
My experience mirrors this.  Equifax refused to take off the old hits so I just put new ones on.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote philbain Quote  Post ReplyReply Direct Link To This Post Posted: 21/January/2013 at 5:09pm
The guys over at www.canadian-money-advisor.ca may be able to help you through the steps of clearing your credit report up. I'm pretty sure that we have laws regarding credit reporting and with the right steps you can polish your report up.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 22/January/2013 at 7:28am
Credit reporting law says that inquiries are only allowed to remain for 3 years. Policies of the private institution do not supercede the law. If they give you grief at the private level then you have to invoke the consumer protection and reporting law.
 
You have to look at the consumer protection and reporting law in your province.
 
 
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 kenny Quote  Post ReplyReply Direct Link To This Post Posted: 22/January/2013 at 10:47am
Thanks for all the useful information.

The accrued interest + 2 months of payments were paid in a lump sum last Thursday. I called CRA today to verify that they've processed the payment to the account, then followed that up with a call to the CSLP officer (transferred via NSLSC). He said to expect a letter in the next week or two confirming that they have recalled the account from CRA. I asked what would happen on my credit report, and he said that negative tradelines would exist until the 6 year period expires.

On the topic of hard inquiries, I noticed there was an inquiry from Total Recovery Credit back in 2009/Jan. The gov't had previously lost my cheque (yet somehow cashed it) for the provincial part of my loan, and the account was sent to collections as a result. I guess I should get a hold of Equifax to remove it, though based on the experiences above, it might be a hassle. Is it worth it?

Further updates to come...

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Post Options Post Options   Thanks (0) Thanks(0)   Quote emerald Quote  Post ReplyReply Direct Link To This Post Posted: 23/January/2013 at 3:59pm
Originally posted by Johnny Johnny wrote:

Credit reporting law says that inquiries are only allowed to remain for 3 years. Policies of the private institution do not supercede the law. If they give you grief at the private level then you have to invoke the consumer protection and reporting law.
 
You have to look at the consumer protection and reporting law in your province.
 
 


I sent a letter quoting the statues and laws here.  This is what they got back to me with:

 "inquiries from credit grantors are automatically purged three years from the date of inquiry, but our system will retain a minimum of five inquiries".


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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 23/January/2013 at 7:50pm
Privacy Commissioner compliant?  I think this is a no brainer for them to rule on!

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Madmorrigan Quote  Post ReplyReply Direct Link To This Post Posted: 24/January/2013 at 5:59am
Originally posted by emerald emerald wrote:

Originally posted by Johnny Johnny wrote:

Credit reporting law says that inquiries are only allowed to remain for 3 years. Policies of the private institution do not supercede the law. If they give you grief at the private level then you have to invoke the consumer protection and reporting law.
 
You have to look at the consumer protection and reporting law in your province.
 
 


I sent a letter quoting the statues and laws here.  This is what they got back to me with:

 "inquiries from credit grantors are automatically purged three years from the date of inquiry, but our system will retain a minimum of five inquiries".




This is also the response I received and, again, the CBS pretty much said there was nothing to be done. I'm not sure how the Privacy Commissioner would have any say in the matter....?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 24/January/2013 at 7:33am
Well they are storing info about you that legally should be removed.  So I would think a privacy complaint would be in order.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Madmorrigan Quote  Post ReplyReply Direct Link To This Post Posted: 25/January/2013 at 2:29am
Originally posted by administrator administrator wrote:

Well they are storing info about you that legally should be removed.  So I would think a privacy complaint would be in order.


I don't think so...what they're doing is reporting an occurrence--in this case, an inquiry on our respective credit files--not reporting anything about us, specifically. The fact that someone has made a legal inquiry can't be disputed (assuming, of course, that there is a "legitimate" reason for making said inquiry). The fact that there are two entries previous to the three that are "legal" really doesn't do too much from the point of view of 'privacy', imo. Yes, they continue to bugger our credit ratings but we can't argue  with the fact that they were (again, assuming) legal. If the credit reporting agencies were sending that information out to sources that have no business seeing it then yes, that would be a privacy issue.

Maybe someone else has a different take on this? If a compelling argument can be made, I'm all for sending a complaint to the Privacy Commissioner...I just don't see where they would be able to do what the Ministry of Consumer and Business Services, the very entity that is supposed to enforce the laws governing the credit reporting agencies, will not do.


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