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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ranui View Drop Down
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    Posted: 01/August/2012 at 7:06am
Is there anyone with experience with filing a consumer proposal with most of the debt being related to Student Loans?  Do the holders(government and bank held) of the student loans generally fight them? What should a person consider before filing a consumer proposal?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 01/August/2012 at 10:49am
Consider that a consumer proposal may not cover the student loans. A person should consider making An informal proposal before entering into a formal one, as is the case with bankruptcy. In VERY many cases doing things informally without bankruptcy gives you great accomplishment and the potential for quicker rehabilitation.
 
You have to consider the costs really. A couple of thousand dollars for a bankruptcy procedure, and then a large percentage of your debt is collected as a commission by the trustee.
 
Who do you owe and what is the reasonable result you want to see? I will give you an example of how effective informals are in comparison.  
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 ranui Quote  Post ReplyReply Direct Link To This Post Posted: 01/August/2012 at 2:56pm
I'm aware that the proposal may not remove the loans, but I'm trying to look at all the options for future reference. There is not a lot of information for consumer proposals/bankruptcy when it comes to student loans.
I have three loans, one BC Student loan, one Canada Student Loan and a CIBC student loan.  The BC(managed to keep in interest relief, but now been shuffled to NSLC so that may change...) is 9000, CSL(CRA) around 12,000 and the CIBC(NCO) for 4000.  
After struggling for the past few years to pay and being hounded by collections, I'm needing better options and trying to figure out how I can pay off/get rid the loans and the stress that those loans cause... Another reason I was looking at a proposal, is that I want to pay, but need something more concrete for terms than dealing with collection agencies...
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 02/August/2012 at 6:26am
Don't let a collection agency or their terrorism be what pushes you into bankruptcy. Man, there are so many people that this has happened to over the last 20 years, whoch has created even more problems than it ever solves.
 
Bankruptcy is what people know though because they hold the dominant business position promising remedy to the consumer population. It is not that promising though unless you are REALLY bankrupt. If you are not bankrupt then you should steer clear of it.  A consumer proposal is a bankruptcy firm's way of making even more money than traditional bankruptcy proceedings, so you have to think best strategy for you.
 
The system is not that difficult to negotiate with once you have the tolls and intelligence to do it. THat is what The CFW Group provides. We are not "anti-bankruptcy" by any means. However, we are all for the consumer, and the development of a working relationship, and what you need is just that to get you where you need to be.
 
The other opportunities you may have could very well be caught in a limitation issue. People who are in hardship with virtually no ability to come out from underneath the weight of horrendous student or any debt can benefit largely in these types of cases.
 
This is where we have to separate those whoa re able to contribute from those who cannot contribute. If you can contribute, then there are several opportunities at your disposal. If you cannot contribute, and can demonstrate fully then the opportunities/benefits are much more. So in other words - there is opportunity for EVERYONE except for those who intend to screw the system. Unfortunately, that is a frequent problem more so today than previous years and I suspect this is because of the economic climate and severe anger and resentment people have towards the student loan system and it's management in general.
 
So look, if you want to be free of being hounded, harrassed, or terrorized by collectors that can be remedied. If you want to get set up on a productive repayment structure where YOU pay directly to them affordable installments, that can be done. If you want to build a working relationship with them whereas you materialize to become a human being in front of their eyes rather than a statistic of bias and whatnot, than it can be done. It is what I and this group does for you  - or teaches you how to do! People often save a lot of time and money this way.
 
I charge a fee and it is MINISCULE in comparison to what bankruptcy or digging a hole and living the life of a gopher will cost you.
 
If you have me do this then the context of your life will be taken into account and that is where it starts.
 
So, if you were my client, then here is the benefit:
 
first - If there is a limitation issue and you are in financial crisis past and current - and if there are obstacles in your path that will prevent you from getting out from underneath this in the future then this is the ultimate opportunity/benefit. Then you are done with it.
 
If it is not barred then:
 
1) All risk areas will be approached and a preemptive intervention will take place to secure those risks and turn things around.
2) Your CSL will be addressed whereas you will be able to pay them a reasonal monthly installment and no threat of justice activity or litigation.
3) The same applies for the CIBC share.
4) You won't have to worry about NCO because they will have no further need do anything other than communicate with CIBC and monitor whatever the arrangement you make with them.
 
The longer-term opportunity and benefit is:  debt reduction due to hardship with extenuating circumstances. If your hardship is sever enough then the government may be willing to remove the debt from recovery due to that hardship, providing it is demonstrated properly and convincing.
 
The bank will help you too IF the relationship is in place. You are NOT going to secure that sort of relationship through insolvency or gophering up because they turn their back to those results.  
 
So, after reading these opportunities and potential benefits, is it what you want?
 
 
 
 
 
 
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 ranui Quote  Post ReplyReply Direct Link To This Post Posted: 02/August/2012 at 9:59am
I would rather not go bankrupt, not that my credit can get any worse.  I don't own anything other than a piece of junk car that I couldn't give away if I wanted. Everything else is my husband's name including a loan we had to get to cover some debts my ex stuck me with through the government. CRA gets downright nasty in their collection tactics and nothing quite like being told you shouldn't pay other people you own money to because you should pay them first.  Though honestly, I laugh at the collections people when they say it will wreck my credit if I don't do this or that.  My credit can't get any worse and I have told them that when they threaten that.
 
I would like be able to get on a decent payment plan, not one that I have to worry about changing all the time, takes into account more realistically the bills that are there, and one that won't break the bank. My husband and I make decent money, we should be better off than we are if you just looked at the coming in part and that is all the collections people see.  They seem to have a set amount for living costs and if you are over you must be  They really don't account that we live in an area that pays good, but also you pay to be here.
 
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 02/August/2012 at 11:29am
The CRA issue -  I can fix that. Like i illustrated previously. They are trained a certain way, and granted they have to deal with a lot of people who actually do not want to pay loans back. That does create a stereotype and attitudinal issue on their end.
 
If you don't want to pay a trustee thousands of dollars to potentially cause worse problems, and you don't want to gopher up, then I have given you a direction to take. You can do that on your own or you can call us and we can do it 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 kennerman Quote  Post ReplyReply Direct Link To This Post Posted: 03/September/2013 at 10:40am
Des filling a previous consumer proposal impact your ability to rehab your student loan?  I paid mine off (consumer proposal) but they seem to think i am still bankrupt and am not even able to contact the "non tax bankruptcy" department due the their hours being while i work. I am literally trying to give them my money but cannot get a hold of the right person to accept it ughhh.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 03/September/2013 at 4:52pm
They cannot accept any payment from you until the trustee issues them a certificate of completion or a discharge notice. THis often takes a while. You should press the trustee you used to submit that so you can resume - or rehabilitate back into active status, if this is the case.
 
In the meantime, you will find yourself being bounced around like a basketball from person to person, and deptment to department.
 
Contact Tricura with the NSLSC and see what they say. They are the private collection group who handles Canada student loans and bankruptcies. CRA could also refer you to their bankruptcy and assessment office as they do have one, which likely has access to your account.
 
Hope this helps.
 
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 fixmydebt Quote  Post ReplyReply Direct Link To This Post Posted: 28/September/2013 at 12:48am
The CRA is responsible for the collection of government student loan debts. The CRA will review consumer proposals on a case by case basis. Typically when they are the main creditor they will either refuse to accept the proposal or attempt to negotiate a higher repayment amount than originally proposed. This is after all their job.

However, if you are an indigent - unable to work - or if the student loan is otherwise dischargeable in a bankruptcy and the bankruptcy returns would be significantly less than those being offered under the proposal they will typically "consider" accepting the terms of a proposal.

The things to consider "before" filing a proposal are: 1) enlisting the assistance of a licenced trustee in bankruptcy (ONLY a licenced trustee can file a proposal); 2) avoid paying fees to a debt consultant (a trustee will meet you for free); 3) have you exhausted other means for repayment? 4) ensure that before you make a decision you consider the costs and consequences of bankruptcy as an alternative.

Filing a consumer proposal is no panacea - for many people a bankruptcy provides a faster and cheaper resolution to serious debt problems.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote fixmydebt Quote  Post ReplyReply Direct Link To This Post Posted: 28/September/2013 at 12:53am
A consumer proposal shows as an R-9 on your credit report while it is active. So a five year proposal will rate an R-9 for five years. Once the proposal is completed it is upgraded to a R-7 for a further three years. In that sense a proposal may be on you credit report for longer than a bankruptcy. The ratings are so similar, and because both proceedings are filed under the same statute, that most lenders (typically banks) do not differentiate between proposals and bankruptcies. If your student loan debt was included in your proposal and you have completed the proposal there is no need for you to make further payments.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote fixmydebt Quote  Post ReplyReply Direct Link To This Post Posted: 28/September/2013 at 1:03am
You are making some reasonable points but to be fair a trustee's fees are minimal compared to the cost of servicing some debts. A Trustee in bankruptcy is highly regulated and licensed by the federal government and cannot charge arbitrary fees.

Bankruptcy and consumer proposals should be your options of last resort in dealing with debts. But not behind paying debt consultants who promise results they are unable to deliver. I have seen debt consultants charge up to $6,200.00 in fees for nothing more than what ends up being an introduction to a bankruptcy trustee who got paid $1,800.00 to get the person out of debt. The $6,200.00 came from an RRSP that the debtor wold have kept had they met the trustee first.

In Ontario the Limitation Act creates a statute bar on debts that are more than two years old. It does not create a bar against government debt. There is a clause under the Student loans Act that allows for a default remedy on student loan debts where the person is unable t complete their education or work as a result of ill health. Under certain circumstances and upon application student loan debts may be forgiven.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote fixmydebt Quote  Post ReplyReply Direct Link To This Post Posted: 28/September/2013 at 1:07am
This is fear mongering and not factual information. A bankruptcy trustee does not collect a percentage of debt as a commission. For the majority of people filing a bankruptcy they merely pay the trustee's administrative fees typically around $1,800.00. Sometimes those fees are paid from HST and income tax rebates. Get the facts talk to a trustee before making any decision.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 29/September/2013 at 7:32am
A consumer proposal nets a bankruptcy trustee a healthy commission. THat is why consumer proposals are promoted more so than traditional bankruptcy. A trustee receives their percentage of what is paid. This is factual - and not widely publicized. People ina  situation whereas they can contribute towards debt in a settlement manner can achieve better savings and develop healthier relatuonships (or rehydrate dried up ones)with the financial community by undertaking things without the use of bankruptcy proceedings. People save more money and recover a heck of a lot quicker.
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 Insane Quote  Post ReplyReply Direct Link To This Post Posted: 29/March/2014 at 9:14am
I just completed my consumer proposal.  My trustee got less than what they would have gotten had I filed for bankruptcy (mine would have been a 21month bankruptcy).  I'm looking at the filing right now.  They are paid out of the proposal, not on top of. All it means is the creditors get their share after the trustee gets theirs.

I had some credit card debt, a CIBC student loan (not co-signed) and OSAP.  It had not been 7yrs, so my OSAP was not discharged.  However, as a creditor, they did receive a % of the money collected.  It doesn't cover the interest that accumulated over the 3yrs, but still, better than none of it going towards the OSAP.
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