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 Locked7 year old default osap loan

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danshadow View Drop Down
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    Posted: 22/September/2013 at 4:39am
Hello,

I was accepted for an OSAP loan several years ago, and attended college in 2006/2007 in Ontario.
After completing my second year,  financial/personal circumstances forced me not to return to college, and I was a few courses short of a degree. As of 2007/2008 my OSAP debt was at $17000.

A year or so later I found out that I could apply for 6 months of interest free status, requiring a lump sum payment and a one-time-only amortization of the interest on to my total loan amount. I went through with this, and a few weeks later I was told I would need to make another lump sum and re-apply because my 6 months was retroactively applied to the past 6 months. I was not financially able to do this.

It has now been 6-7 years, I have not made any payments nor had contact with OSAP. I have been employed at minimum wage jobs, and not able to get a job for what I went to college for (Computer Programming).

I have not done my taxes in the past 6 years because I was told that CRA will take it and forward it the agency holding my default OSAP loan, and I cannot afford to get my taxes done without a return.
I literally live paycheque to paycheque.

I am looking for a way to consolidate my Ontario OSAP loan in default status, even though I have no money in the bank, and a minimal amount of credit card debt (as well as being behind in a couple bills).
I sincerely want to go back to school and find a career so that I can repay my loan, but I cannot save up enough money due to my minimum wage employment, and was told OSAP would not consider me for another loan until the current one is cleared from default status. 

I've read through several posts on this website, and noticed things such as "Consumer Proposals" but I don't quite understand it.

I am really in need of some guidance.. does anybody have any suggestions on how to clear my debt, or get the opportunity to go for a second career with bad credit and OSAP/credit card debt?

Any help would be sincerely appreciated!!
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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 7:55am
Whether or not the Ontario government will give you any relief benefits depends on a number of things. Early withdrawal issues are common because of the broken educational and student loan systems in Canada. A strong case will get you a benefit. If you are going to ask any government to cut you some slack on a debt you them you have to give them a reason to do it. I am an expert at doing that for people, but I can't say without interviewing you and detemrining case strength anddoing the analaysis that is required to formulate one.
 
Economic circumstances affect mostly everyone in Canada but that isn't a good enough reason. There has to be a a lot more in such demonstrations. The ones that we do for clients are HUGE and quite time consuming, depending on the severity of a case.
 
To answer your question about "consumer proposals" those are bankruptcy programs. The trustee makes an offer to the government and the govenrment has the right to refuse. If approved, you pay a percentage of the debt (probably somewhere between 50-65%) and the trustee takes a piece of that for themselves, plus the up front fee of $2000.00 or thereabouts. If you have a clear and present hardship with extenuating circumstances, and it is strong enough, you can present it to the government and they may remove the debt from recovery based on that. 
 
Bankruptcy is getting REALLY old and branding those who really did not require it a problematic identity crisis.
 
 
 
 
 
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 danshadow Quote  Post ReplyReply Direct Link To This Post Posted: 20/October/2013 at 6:08am
Thank you for responding to my post Johnny. Here is some more information Surrounding what had happened. During my first year of college I spoke with my doctor, and was prescribed antidepressants for my clinical depression. In the summer prior to my second year attending college, a criminal offense I had committed when I was 12 years old came to light. My family disowned me and kicked me out on to the street. I had already secured my second year of OSAP funding so I was able to start my second year of college. Having lost everyone I ever cared about, I fell into a deep depression and into substance abuse. Somehow I was able to keep my grades up. I was staying on the campus residence, and was subject to an eviction due to the smell of marijuana. I was allowed to stay in residence until the end of the year because of a letter I wrote explaining my circumstances. After college, I found a place to live with other family members until about a year later when charges were laid for my offence comitted at age 12. I was asked to move out, And shortly after found an apartment. I was sentenced to 2 years probation and to work with a psychologist for 1 year. My probation ended 1 year ago, and because the offence was comitted when i was a minor i have no criminal record. Since college I have worked several minimum wage jobs to support myself, and this year got my first girlfriend in nearly 7 years, who has moved in with me. I have a sense of self-worth again, and wish to do more for myself and my girlfriend. Supporting her and I on minimum wage doesn't give me enough money to repay my loan or save for college. I live paycheque to paycheque. do you think my circumstances over the past several years would provide a strong enough case to have the government provide some debt relief?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 21/October/2013 at 3:45am
I see a case but it's merits reay depend on a ot if "in between" information.  The result will depend on exactly how strong the case is, and although you certainly endure and have endured hardship, you will need to present a lot more than this.  You are on the right path and I am happy for you! You can't change the past but you can form your own future, and you are thinking the right way.
 
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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