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: 10/October/2014 at 2:02am
Hello -
I have an old Student Loan issues through BNS from approx 1998-2000. I already paid off one portion which I thought was the only portion. I started receiving calls and letters from various collection agencies regarding an $18K debt which was new to me. In the 12+ years, no paymens have been made or acknowledgement of any kind. I just received a statement from Social Development Canada requesting the payment in full or payment of $500 by Oct 18.
I'm assuming the Gov had bought back this loan? What would be their next step? Can they freeze my bank account? Wouldn't this loan be long overdue for them to collect? I am a stay at home mom and don't have an income. Thanks for the guidance.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 10/October/2014 at 10:24am
Do not send anything in writing until you verify whether this loan is statute barred or not. You may want to contact John Leblanc at CFW Group to investigate the loan for you.  He charges fees but can determine whether the loan is statute barred without accidentally resetting the clock on the loan.

For more info there is a subforum on statute barred loans here:
http://canadastudentdebt.ca/forum_topics.asp?FID=90&title=collection-of-old-stats-barred-loans
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Post Options Post Options   Thanks (0) Thanks(0)   Quote fireyesblue Quote  Post ReplyReply Direct Link To This Post Posted: 12/October/2014 at 10:16am
Thanks for responding. What's the likelihood that CRA would freeze my bank account in this situation? Would it happen after receiving just one statement for payment? Thanks!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 13/October/2014 at 4:50am
I'm not sure what Social Development Canada is. I've never heard of that before.   It may be a 'official looking' notice but not really from the CRA or from the government but actually from a collection agency trying to look official - and trick you into making a payment which would cause you to lose your statute barred protection. 

From a search, Social Development Canada was no longer in existence under that name after 2006.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote fireyesblue Quote  Post ReplyReply Direct Link To This Post Posted: 14/October/2014 at 3:20am
Thanks Mark.  It was from:

Employment and Social Development Canada (ESDC)

In the past, I received documents and statements from either CRA or from HRDC.  This is a new one that I am not familiar with myself, and wasn't aware, they even tried to recover old student loans.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote fireyesblue Quote  Post ReplyReply Direct Link To This Post Posted: 18/October/2014 at 6:12am
Turns out HRSDC has been rebranded - FYI.

"The Department of Human Resources and Skills Development Canada (commonly known as “HRSDC”) has been rebranded as the Department of Employment and Social Development Canada (“ESDC”). As previously reported, this change was implemented by the coming into force of Bill C-4, the Economic Action Plan 2013 Act, No. 2."
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 19/October/2014 at 6:37am
It will be named something else sometime soon once someone up there gets tired of this identity. 
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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