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: 11/February/2013 at 8:47am
1. Can CRA withhold income tax/gst refunds on defaulted student loans that are Statue Barred?
2. If I voluntarily pay off a defaulted student loan that is Statue Barred that falls under the 1990 limitation act which I believe has no provision to extend a limitation act -can the collection agency report the payment to my credit report and therefore affect my credit rating again?
3. If I received a student loan in 1996 and never made a payment on it ever or acknowledged it when is it legally considered in default?
 
Please see this background to assist with answering. I have had my income tax withheld from the CRA due to an old Ontario Student Loan, I had a Canadian one as well but they have closed the file apparently from the research I have done. The loans were taken out in either 1995 or 1996 and went into default immediately as I had to withdraw from school and was hospitalized and later on sick benefits for sometime. In 2005 when I finally got back on my feet I voluntarily called around to search for any outstanding debt that I might have to pay off (no debt showed on any of my credit files at this time so I called around seraching on my own) This stirred up collection calls and they started to harras me even though I sought them out.  The collection agency also previously held my Federal loans and for those they harrassed me at work and threated actions they were not legally allowed to. When I threatened them as they were using methods that were illegal they then stopped taking my calls. At this point they indicate to me they no longer hold the Federal collection account. I am dealing with the same company now ARC for the provincial portion as they submitted it to CRA to withhold income tax and are trying the same methods stating that they will sue me. Since the loans were issued/defaulted and not acknowledged prior to January 1998 I believe that under the Ontario Limitations act of 1990 and 2002 this debt is STATUE BARRED. My question is about the income tax portion being withheld now- If I can prove that this debt is indeed Statue Barred does withholding the income tax fall into limitation period for commencement of action or is this different from taking legal action actionst me? I am presently awaiting documentation from the collection agency for proof of debt (they are contacting the orginal debtor apaprently) as they send me letters with different information constantly threatening legal action and when I asked about the particulars other than the fake amounts they give me they had none and said they would have to request proof.
Thanks for your assistance with this matter
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