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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nur4year View Drop Down
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    Posted: 16/April/2016 at 9:03pm
Hello all,

I have recently purchased my Equifax credit report to get a grip of my financial situation because I would like to turn my life around per se albeit my loans are in default. I live in Ontario.

The report under Credit Information shows 2 "CDA STUDENT LOANS PR" accounts for approximately $14000 and $20000 both of which show the Balance and Past Due amounts to be $0 and as for comments state "Transferred or sold, Account paid". Date of last activity is 2013-06 and 2011-09 respectively.

I also have a credit card debt on there for approximately $400 that states "Written-off, Closed by credit grantor". Date of last activity 2010-07.

The report under Collection Accounts show "MTCU STUDENT SUPPORT" for approximately $6000. Collection agency is Accounts Recovery Corp. Date of last payment states 2011-10.

To be quite honest, I can't remember the exact amount I borrowed from OSAP but $34000 is definitely not right. I'm wondering if the 1st CDA account of $14000 and the collection account of $6000 (totaling $20000) equate to and is the 2nd CDA account of $20000?

I am working casual (few shifts a month) as a registered nurse and am always trying to find more work. These loans were defaulted because I was young and naive and thought they would disappear. I am now trying to get things on track and want to start with my finances first. I have done some reading on this forum and am aware of the debt rehabilitation program but for someone who will not be able to afford to make payments right now anyways what is the best route to take?

I am seriously confused and anxious because I feel like I just know the tip of the iceberg when it comes to finances and how to deal with them but I am trying. I don't really know how to read my Equifax report and wonder why my accounts have been "paid" or "transferred" and what those actually mean. Also, why I only have 1 account under collections when I know there are more? 

More info: I live on my own, my rent is $700 a month cash (so no real record of me being able to make regular payments which I feel like would have helped me?), I have a $35 pay as you go mobile plan, $40 internet plan and then I pay for groceries. That is all my budget allows me to do without putting anything aside. I live paycheck to paycheck sometimes a little more sometimes a little less depending on whether or not I can pick up shifts at the two places I work at.

Good news, I may secure an actual part-time position very soon, so maybe that opens up some more funding for me to actually make payments, but as of right now that is wishful thinking and should be an after thought to your advice.

If there is anyone out there that could offer help, I would seriously appreciate it.

M
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SolveStudentDebt View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 18/April/2016 at 5:45am
The best way to find out who and how much you owe is to call the Ontario MTCU and Service Canada. If you dispute the amounts reported then that would be the direction to go. 

If you only recall borrowing 20,000, and have not made any payments for some time, the interest accrues quite rapidly.  The account you see showing last activity of 2011 (and if this is correct), then interest has built up over 5 years. 

Your loan "make" up should be Federal Direct CSL3 and perhaps CDON (Canada-Ontario Integrated).  That means there are 2 federal parts and one provincial post-default. 

Accounts Recovery Corp is now ARO Collections. The office that has it is most likely the Burlington office.

In any event, the amount they are reporting as your total includes interest. Credit reports are the last thing you want to go by for a reliable composite of who and what you owe, and activity/trigger dates.  

Now, for the rehabilitation question. If you are not able to pay then rehab is not the way to go. You'd be spending time and effort only to end up in the same position. If you are in default then the system wants to you acknowledge, and the rehabilitation program is a good thing for some - but not so for others 

Options: 

1) Appeal for removal of the loans due to hardship, and if that fails - settle them out for less. 

They are pretty good options. We can help you if you want but this is a service. 

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
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Royal-NCO View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 18/April/2016 at 7:12am
Further to Johnny's comments:

The amounts that show as transferred is the Canada (Federal) portion of your debt.  It shows as transferred, because it is now being collected directly by the CRA.  You may have received notice that they are seizing your tax returns/HST etc.  In fact, if you've set up an online account with CRA, you can look at the transaction history and see where you tax refunds are going, assuming you're filing a tax return each year.

If you don't have an online account here's where you go to set it up.

http://www.cra-arc.gc.ca/myaccount/



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