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 LockedWill CRA entertain consumer proposal

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scoobydoo View Drop Down
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    Posted: 23/July/2013 at 8:30am
I have about 50k in debt including 7k CSL being collected by CRA. I'm considering a consumer proposal to offer 15k to settle all my debts instead of filling for bankruptcy. I questioned the trustee about including the CSL but she said since its been 10 years out of school CRA will consider a proposal. In fact she went as far as saying that if I did declare bankruptcy the discharge re CSL would likely be automatic.

Is she correct? Are there other factors to consider?
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scoobydoo View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote scoobydoo Quote  Post ReplyReply Direct Link To This Post Posted: 23/July/2013 at 4:12pm
I just read all the posts under seven year rule and this is what I take away from it:

I know discharged is the wrong term with respect to a consumer proposal but I can't think of a better verb.

1) if 7 years have passed since you ceased to be a ft/pt student then your CSL loan will automatically be discharged in a consumer proposal regardless of whether or not cra votes to accept it. Assuming the there votes are enough.

2) if 7 years have not passed then if the cra agrees and it is explicitly written into the proposal the CSL loan can be included and discharged.

3) if you file a proposal then you can become a student again after the filing date but before the completion date without affecting the 7 year rule.

However, would it be a good idea to write in the terms of the CSL look own anyway just in case?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 24/July/2013 at 3:46am
What debt do you owe other than the CSL? What is the CSL actually, a CSL1, 2, 4?
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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scoobydoo View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote scoobydoo Quote  Post ReplyReply Direct Link To This Post Posted: 24/July/2013 at 3:52am
Other than CSL just ordinary consumer debt. Not sure what you mean by CSL 1,2,4. The CSL being collected is the risk portion of my loan resulting from a previous bankruptcy.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 25/July/2013 at 2:51pm
So a bank is who you owe then. Because in your post on top you said you owe CSL that is with CRA collections. If that is what you are referring to then it is not a risk portion. CSL1 is first generation guaranteed loan, CSL2 is a put-pack to thwe Crown (once a risk-shared), and after that it is direct/integrated.
 
Before you surrender to bankruptcy you should at least find out if there any better solutions out there because bankruptcy is the LAST thing anyone should do. It could present serious problems for you down the road depending on what your future plans are.
 
 
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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