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.


  New Posts New Posts RSS Feed - Defaulted OSAP not effecting credit score
  FAQ FAQ  Forum Search   Register Register  Login Login


Forum LockedDefaulted OSAP not effecting credit score

 Post Reply Post Reply
Author
sleo View Drop Down
Newbie
Newbie


Joined: 12/March/2015
Location: Canada
Points: 2
Post Options Post Options   Thanks (0) Thanks(0)   Quote sleo Quote  Post ReplyReply Direct Link To This Post Topic: Defaulted OSAP not effecting credit score
    Posted: 12/March/2015 at 4:51am
Hi,
I am really confused! :)

Just pulled my Equifax report, and have a credit score of almost 700. The thing is, after graduating in 2004, I have an outstanding student loan of ~$36000, that I have not made a single payment towards (besides the tax refund garnishing, which as far as I know, does not really count). 

The thing is, in the detailed Equifax report, it does show the OSAP information in the "Public Record and Other Information" Section. 

This is the information in there (xx'ed out the account number and personal info):
Secured Loans
Court Name:MINISTRY GOVT SERVDate Filed:2012-12
Industry Class:Creditor's Name and Amount:xxxxxxxx THE TORONTO-DOMINION BANK - xxxx $xxxx
Maturity Date:

Comments:

Security Deposit Unknown 

Nothing shows up in the "Collection Accounts" section.

Now the questions I have are:
  •  What does this actually mean for my credit history? 
  •  Do I actually have a credit score of 700+ or when I try to apply for a loan (like a mortgage), the outstanding debt will come into play?
  •  Why does it show date filed as 2012? There shouldn't have been any activity on my part on this particular account.
Thanks!
Back to Top
Sponsored Links


Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 13/March/2015 at 3:52am

This is just a public record showing a secured account (debt) to the province with no disposition. It is not something that is affecting your reputation as a consumer. Now, if the debt was reported as a delinquent debt then that would affect your beacon score.

If you apply for a mortgage and meet the bank's criteria for approval, they will want to know hat that is all about and either ask that you get rid of it, or if the circumstances are right, they may offer to pay it out for you as part of the mortgage agreement. I see this all to much. The bank can't see what the amount is though, and if it is one of those huge OSL balances then it could create3 some trouble.

Lastly, there are no limitations on Ontario student loans as of 2004. You will notice that there is no activity date noted. The date you are referring to is the date that you are referring to is the date that the account was filed as a public record. The Ontario and Nova Scotia governments do this to raise the concerns of people that are asking the same questions you are. It is nothing more than a trick they use to ensure that when you apply for a mortgage they are not forgotten about.

There are limitations in respect of the reporting of a debt more then the prescribed period of time that falls within Equifax's policy. In this case, the debt is obviously quite old and has likely been reported prior for that prescribed period of time (6 years). After that period of time expired the bureau is required to remove anything that has surpassed that period of time. One shouldn't confuse the limitation of credit reporting with the limitation that applies to the life and/or recoverability of a debt.

To sum it all up, the account is not reported. Rather it is the public notice that a debt is secured, with no known disposition, meaning that it doesn't specify delinquency, satisfaction, or an outstanding amount. There is just a secured account in the form of a debt to the Ontario government that was issued by TD bank, and guaranteed by the Ontario government.

Hope this helps!  


Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
Back to Top
SFA View Drop Down
Newbie
Newbie


Joined: 11/April/2015
Points: 6
Post Options Post Options   Thanks (0) Thanks(0)   Quote SFA Quote  Post ReplyReply Direct Link To This Post Posted: 11/April/2015 at 11:09am
Speaking from a lenders point of view, this reported trade under Public Record mainly serves as an advisory to potential lenders.
If applying for a major purchase such as mortgage or auto loan you may be asked for term specifics or when expected serviceability will commence so proper debt service can be determined to underwrite any conditions or advancement of loan considerations.
Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 19/April/2015 at 12:21pm

The lending community is becoming more open to assisting people financially who have student loan issues. Let's face the fact here.  Banks and financial institutions alike face a serious crisis because a large percentage of the entire population of Canada has outstanding student loans, many of which experience trouble financially because of them. If the financial community has no consumers then it collapses. So people who demonstrate productive consumer behavior and attitude can pull the weight of the student loan system much further than those who do or cannot.

Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
Back to Top
SolveStudentDebt View Drop Down
Moderator Group
Moderator Group
Avatar

Joined: 05/November/2003
Location: Canada
Points: 5996
Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 19/April/2015 at 12:22pm
Those who do not, or cannot.
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
Back to Top
 Post Reply Post Reply

Forum Jump Forum Permissions View Drop Down

Forum Software by Web Wiz Forums® version 12.07
Copyright ©2001-2024 Web Wiz Ltd.