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 LockedHelp! ARC and Ontario Loans is my achilles heal

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Zucarlos View Drop Down
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    Posted: 02/June/2014 at 3:33am
Hi All,

I have watched this board for many years now and I'm not sure what is the right move in this situation.  I graduated in near the end of 2006, and moved to a larger and more expensive city to find a job in my field of work.

With my Canada Student loans starting at the same time after the grace period, I neglected paying the loans with things like rent, and low pay and other bills taking precedence.   I was scared and avoided my problem and defaulted on an approximate $26000 loan by the beginning of 2008 ($18000 Canadian Portion and $8000 Ontario).

My GST and was garnished, and I was unable to get credit at all, but I ignored the letters that would come from the collections from the HRSC (Canada) and the collections from Ontario.

In approximately 2010 as the Canada portion of my student loan ($18000) went back to HRSC for them to collect themselves, I called them and was able to arrange a payment plan.   I paid them $275 every month, and eventually I had the debt down to $6500 by the end of 2013, at which time I applied for and received loan rehabilitation. 

The Canada portion of my loan is back to the Canada Student Loans Center in good standing with less than $5000 to go.  With my improved credit and old bad payments falling off the system in those 6 years since 2008, I have managed to get a credit card that I pay diligently every month to help my credit. 

Things have been getting better in my life, and I can't believe I let things get so out of hand with Ontario.

My one big black mark is my Ontario Student loan with ARC with a balance of $7800.  I have been saving a bit each month as well so I can pay Ontario off in full at the same time my Canada portion is done (I'm up to $1200).

They have been sending me one letter a year since they got my acct in 2011.  Finally last week after many years they caught me completely off guard with a call at work.   The lady said she was from "ARO" and was actually okay on the phone ( I know be very careful),  and told me that she would be able to do a settlement for me and also have this taken off my credit report entirely like it didn't exist if I paid in full by the end of May (that was in two days)

She wanted payment by the end of the month (I had two days to do it).  I told her that any thing she wanted to offer to me I would like to see in writing.  She told me that the offer may be done by the time I received it, but she would send it to me.

 I will probably receive the old "expired" offer today on Monday June 2nd.  I want to know if they would actually put it in those terms that they would remove my account for payment.

I am now in a dilemma.  I don't know what to do.  I want to continue to improve my credit and eventually get a home, but I'm not sure how to proceed.  I could pay ARC in 16 months with monthly payments but I'm scared it will ruin my credit.  I could probably get a loan through my bank at this point with a cosigner but how do I negotiate for removal of this item if I do?  I feel like this is a big decision where things could go very wrong after years of getting back on track.

I'm confused, and now that they've found me, I'm sure that the calls will continue.

I feel like I need to make a decision asap.

Thank you for listening to me.

Zucarlos.




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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 02/June/2014 at 6:56am
She is likely lying to you. She likely does not have the power to remove it from your credit bureau reporting.  The two day deadline is  a pressure tactic to get her 'end of month commission' numbers.  Any settle offer must be in writing. 

You're on the write track to take care of this.  Saving up may be a good option because then you'd be in a position to make a settlement offer, but again, get it in writing!  There have been cases where payment was made and just applied to the balance....
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