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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studentmess View Drop Down
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    Posted: 21/April/2015 at 3:18am
I fear my Ontario student loan may have been transferred to TCR based on a soft enquiry on my credit report.

Due to my issues with these student loans, I have made no payment ever since 2006 when my studies ended. The only payments made have been involuntary through the CRA (tax refunds etc. ) most recently this past October 2014.

Back in September of 2013, there was both a collection item and a trade item reporting on both Equifax and Transunion. Both trade and collection items aged off the report in October of that year 2013.

Given the involuntary payments from CRA tax refunds has the trade/collection been re-aged, allowing TCR to repost the collection and trade item? I know the rules are a little different for Equifax and Transunion. If you can be clear what can happen on each report that would be great. Thanks!

I am saving money and plan to pay this debt in one lump sum.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 22/April/2015 at 4:00am

Credit reporting by provincial code (Credit reporting law) is 7 years. However, 6 years is the private bureau's (Equifax Canada) policy. I am unsure if Trans Union has that same policy, but they should to keep things aligned and respectable.

If an item "has" been reported for the prescribed period of time in which it is allowed to be reported, then it has to be removed. It doesn't mean it is statute barred. However, there are limitation periods that apply to a lot of other matters other than the ability to recover debt through legal proceedings. 

If the Ontario government had your OSAP loan reported to the bureaus as a collection item longer than the prescribed period of time in which it is allowed to report it (Provincial reporting law = 7 years), then it is not permitted to report it again after purge. That is a common interpretation given.

Now, to take this a step further, for example, Equifax Canada will purge items reported longer than 6 years in Ontario. However, the creditor's who are reporting those items are said to be legally entitled to report it for an additional year (7-year) as outlined in the provincial credit reporting law, should any make that argument. Equifax's internal policy does not supersede legislation that applies to the reporting government or creditor.

Something to consider about Canadian law and their writing. They either don't make sense, or they bring prejudice or undermining to another applicable law, as a condition called "overlapping".         


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

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Post Options Post Options   Thanks (0) Thanks(0)   Quote studentmess Quote  Post ReplyReply Direct Link To This Post Posted: 22/April/2015 at 11:23am
Thanks for your reply, Johnny .

Sure enough I received a letter from TCR demanding full payment on my Ontario student loan.

I am very interested in this new Rehab program, but I am very concerned about the potential damage to my credit report. I am going to assume that the original trade line and collection item have properly aged off my report based on your description above.   However, does new payments to the loan reage the trade and collection item allowing it to be reposted to the credit report?

I'd love to get this under control once and for all. I can afford reasonable payments now. However, destroying my credit again will destroy my capacity to pay the debt and will put me right back where I started.
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I called TCR today, informed them of my past unwillingness to cooperate due to errors within the system, and requested the rehab program. No application procedure, yet, just a directive sent to the government. I'll be receiving notice of the terms of the rehab agreement in the next week or so.

Apparently, this collection agency doesn't have the authority to directly mark my credit report on this particular loan..
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Post Options Post Options   Thanks (0) Thanks(0)   Quote studentmess Quote  Post ReplyReply Direct Link To This Post Posted: 28/April/2015 at 2:37am
Apparently, there is no limitation period for credit reporting of crown debt where no statute of limitation applies.

In other words, because the ontario provincial debt has no statute of limitations for legal action, it also has no limitation for reporting to the credit bureau. It can sit there forever until it's paid in full.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 28/April/2015 at 6:25am

That is not true. Credit reporting law cites 7 years in Ontario. That is a provincial law. Limitation law does not apply to credit reporting law. If this is an interpretation or opinion by a government official, it is irrelevant. A ruling on the matter would be required. You can't just mesh one law into another and call it "fact".

Who told you this? It is important for ANYONE dealing with government agents and civil service to get the details of who they are talking to, and note what is being said. Many deceitful and egregious practices originate from those levels, especially the private sector who is hired or contracted by them.  


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 studentmess Quote  Post ReplyReply Direct Link To This Post Posted: 28/April/2015 at 7:09am
Originally posted by Johnny Johnny wrote:


That is not true. Credit reporting law cites 7 years in Ontario. That is a provincial law. Limitation law does not apply to credit reporting law. If this is an interpretation or opinion by a government official, it is irrelevant. A ruling on the matter would be required. You can't just mesh one law into another and call it "fact".

Who told you this? It is important for ANYONE dealing with government agents and civil service to get the details of who they are talking to, and note what is being said. Many deceitful and egregious practices originate from those levels, especially the private sector who is hired or contracted by them.  




Do you have good legal sources for credit reporting rules that I can reference and throw back in their face.

1). I called collections at the ministry level: 1-800-387-5604.
2) I was alerted by the collection agent
3) I called credit counselling - credit counselling society
4). A high profile individual on redflagdeals.com who deals with car financing at the bank level.

I need a good legal source to throw back in their face.

No new collection has yet been reported, but all claim it will be and that its absence is a mistake. It has already been reported since 2006 and fell off my report in October of 2013. Since then I've made MASSIVE progress, raising limits on my credit cards from 1/12th the value of my Ontario student loan to the point where I can pay my student loan six times on my credit cards which I obviously won't do due to the high interest!

In my effort to rehab this loan, not only will I pay the 6 months IN ADVANCE, I will give you 18 'months in advance.
I can now and I will honour my debt, despite your stupid errors NSLSC.   I was freed the moment my credit was cleared and this has enabled me to now easily pay the debt. Don't shut me down now!!!!!
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Also Johnny, if you revive the activity date by making payments, can't they repost the collection particularly on Equifax?
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Originally posted by Johnny Johnny wrote:

That is not true. Credit reporting law cites 7 years in Ontario. That is a provincial law. Limitation law does not apply to credit reporting law. If this is an interpretation or opinion by a government official, it is irrelevant. A ruling on the matter would be required. You can't just mesh one law into another and call it "fact".

Who told you this? It is important for ANYONE dealing with government agents and civil service to get the details of who they are talking to, and note what is being said. Many deceitful and egregious practices originate from those levels, especially the private sector who is hired or contracted by them.  


The Ontario Consumer Reporting Act (http://www.ontario.ca/laws/statute/90c33#BK34):

Idem

(3) A consumer reporting agency shall not include in a consumer report,

(f) information regarding any debt or collection if,

(i) more than seven years have elapsed since the date of last payment on the debt or collection, or

(ii) where no payment has been made, more than seven years have elapsed since the date on which the default in payment or the matter giving rise to the collection occurred,

unless the creditor or the creditor’s agent confirms that the debt or collection is not barred by statute and the confirmation appears in the file;

-------------------------------------------------------------------------------------------------------------

The Ontario Limitations Act (http://www.ontario.ca/laws/statute/02l24)

No limitation period

16.  (1)  There is no limitation period in respect of,

(k) a proceeding to recover money owing in respect of student loans, medical resident loans, awards or grants made under the Ministry of Training, Colleges and Universities Act, the Canada Student Financial Assistance Act or the Canada Student Loans Act. 2002, c. 24, Sched. B, s. 16 (1); 2007, c. 13, s. 44 (1); 2010, c. 1, Sched. 14, s. 1.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote studentmess Quote  Post ReplyReply Direct Link To This Post Posted: 01/May/2015 at 4:44am
So the only real "opportunity", Johnny, with Ontario loans, is to pay up or declare bankruptcy. This debt will otherwise haunt you and your credit report for life!!
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Oh this is priceless. The ministry approved the rehab option for me. However, despite sending the collection letter to the CORRECT address, the collection agency sent the rehab approval letter to an old address. And the dumb errors begin all over again.

Screw this idea!!

Thanks to my hard work rebuilding my credit, I have been approved for a personal loan at a reasonable interest rate ( slightly higher than what I would be charged if rehabbed, but a fixed rate). Enough to clear credit cards and student loan. So, if they re-report my paid debt to the credit bureau with the ugly past history and kill my credit, the resulting lowered credit card limits won't kill me.


Good buy Ontario Student Loan!!!
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The Ontario Consumer Reporting Act (http://www.ontario.ca/laws/statute/90c33#BK34):

Idem

(3) A consumer reporting agency shall not include in a consumer report,

(f) information regarding any debt or collection if,

(i) more than seven years have elapsed since the date of last payment on the debt or collection, or

(ii) where no payment has been made, more than seven years have elapsed since the date on which the default in payment or the matter giving rise to the collection occurred,

unless the creditor or the creditor’s agent confirms that the debt or collection is not barred by statute and the confirmation appears in the file;

The reporting of a debt as derogatory is not allowed after the prescribed limitation period for reporting. The bolded text that bob put up there simply means that it can still reflect as a debt owed. That's all. All it will show is that there is a secured amount owed to the MTCU or Ontario government, just like a public record. The visual "impact" of it being in default and collection is removed after the prescribed period, thus leaving it as nothing more than public record remark. So, it is NOT reported as a default or collection item as it was the first period of years reporting as a default,


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 bobsmyuncle Quote  Post ReplyReply Direct Link To This Post Posted: 05/May/2015 at 6:49am
Originally posted by Johnny Johnny wrote:

The reporting of a debt as derogatory is not allowed after the prescribed limitation period for reporting. The bolded text that bob put up there simply means that it can still reflect as a debt owed. That's all. All it will show is that there is a secured amount owed to the MTCU or Ontario government, just like a public record. The visual "impact" of it being in default and collection is removed after the prescribed period, thus leaving it as nothing more than public record remark. So, it is NOT reported as a default or collection item as it was the first period of years reporting as a default,


Yes, it will reflect as a debt owed; an unpaid collection item with all relevant information including balance, collection agency if applicable, and original creditor.  It is true that collection items are contained within the public records section on the credit report.  However, even after the 7 years the item can be reported just like any other collection item.  There is no change in "visual impact" and the actual financial impact is the same.  The only real difference is that the DLA will typically represent the validation date.  The credit bureau reporting act does not stipulate that these accounts must be handled differently.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote studentmess Quote  Post ReplyReply Direct Link To This Post Posted: 05/May/2015 at 7:58am
Johnny, i still wonder what they'd do with reporting partial payments or full payment after the prescribed period has elapsed. Anyhow, as I said , I got the loan. I'd rather pay it off and add a positive trade, instalment loan, on my credit report.
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The trouble also with the presence of that public record you mention is that it does stop you from major debt purchase, house, car etc., until cleared. Therefore, whether or not you've been screwed by the system, you're screwing yourself if you don't find a way to pay off your provincial debt.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote studentmess Quote  Post ReplyReply Direct Link To This Post Posted: 05/May/2015 at 1:45pm
Originally posted by studentmess studentmess wrote:

Johnny, i still wonder what they'd do with reporting partial payments or full payment after the prescribed period has elapsed. Anyhow, as I said , I got the loan. I'd rather pay it off and add a positive trade, instalment loan, on my credit report.



I guess I answered my own question: once purged it can't be posted again. Therefore, by paying debt in full, no damage will occur to my credit report.

http://www.canadastudentdebt.ca/forum_posts.asp?TID=6533&title=if-i-settle-will-my-loan-show-up-on-my-credit-repo

Is this correct?
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And the fun continues:

Just got off the phone with TCR. I was about to send them the full balance owed. However, I paused because I had not yet received the letter for the rehab. As I said earlier, they sent the first letter to the wrong address despite sending the collection letter to the correct address. Apparently, the second attempt to send the rehab letter never happened. Why? The file is "closed". Why? It had been recalled. Administrative issues. System updates. How long? Two weeks or more.

Hmmmm.... Problem!   That. means I can't satisfy the deadline for the rehab. Conclusion. The rehab offer was bogus! Are they dangling bait to see who has money?   Was it just unfortunate timing? The collection agent is looking into it for me.

Good thing I didn't send them the full amount owed.   The money would have disappeared into thin air! Given this, I refuse to pay the collection agency. I will pay the ministry directly, however.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote studentmess Quote  Post ReplyReply Direct Link To This Post Posted: 10/June/2015 at 8:29am
Ontario student loan paid in full - one lump sum. Waiting now and hoping that they don't put the purged trade back onto my credit report with a $0 balance and all the old ugly history!!
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Glad you got everything paid off
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