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: 29/April/2016 at 8:41am
After entering into agreement with my Canada student loans last year to pay back 200 dollars per month; I was surprised they took my tax return as well. I still receive the GST.
My next monthly statement included the tax return credit; about 1700 dollars but also a demand for next months 200 dollar payment.
I returned the invoice stating that I was going to spread out the 1700 dollar payment over 8 months and will start paying 200 dollars per month again, in 9 months.
Today, I get this nasty call from an unlisted number demanding that I continue to make payments or my wages will be garnished. I told them that I already paid for the next 8 months with my tax return but was told the tax return was an involuntary payment or something like that.
I told the agent to piss off, so now I guess I'm waiting for my court summons as they will start garnishment proceeding.
Can anyone advise me legally if I'm in the wrong. I have no formal contract with Student Loans (Ontario), only an over the phone verbal agreement to pay 200 per month
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 30/April/2016 at 7:50am
I know it seems reasonable in saying that the seizure of income tax money is a way of saying "I am making payment". However, what they told you is exactly how they see the world out there, and it is not something "you did" to show what they call "good faith". You have to be very careful what you tell these agents when you are both confronted and frustrated with demands they make. I spend a lot of time helping people with communication patterns and ways to overcome the nasty attitudes and beliefs that the human capital within the system has towards borrowers. 
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 Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 30/April/2016 at 11:12am
You should call and find out about rehabbing your loan.  After $200/month payments for a while, and $1700 seizure of tax return, you may find that there is little outstanding interest.  Of course, only you know how long you have been in arrears.  If you have limited outstanding interest due, you may find that you can get the whole federal loan out of collections.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 30/April/2016 at 11:13am
or is it provincial?  Do you know exactly what you're paying back with that $200?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote bladerunner12 Quote  Post ReplyReply Direct Link To This Post Posted: 02/September/2016 at 8:09pm
Hi Johhny I have two questions,  first what is the ultimate statute of limitations when does it star and how does it differ than the normal statute of 6 years for federal loans.  Second question prime minister Justin trudeau said that nobody has to pay back loans starting november 1st 2016 if they do not make more than $25,000 a year.  Will that get car collections off our back they should know by our tax returns our income.  Thanks Johhny.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 04/September/2016 at 6:28am
Justin Trudeau does not understand the student loan process. Every time they have introduced new regulations there has been a total mess up for some people.  We already have the RAP program in place. How does this impact RAP, mr trudeau? Or are you just using the already in place RAP program to present an image of helping people? What happens to the interest? Is the loan forgiven? Is the principle reduced or are you just delaying the payments till later in life?

These questions need to be answered!

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Post Options Post Options   Thanks (0) Thanks(0)   Quote bladerunner12 Quote  Post ReplyReply Direct Link To This Post Posted: 07/September/2016 at 8:52am
No interest accumulates during the time you don't make $25,000 is my understanding as for the RAP program you can't even get into that program until your interest is paid up, which for some loans is 75% of the loan, so really no help at all.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 28/September/2016 at 7:36am
Standard limitation for student loan recovery is 6 years from the date that is named last admission or liability (acknowledgment). The exception is Quebec which is 5 years, and then extended an additional 5 years if the Ministry in Quebec issues a written signed final demand before it expires. And, of course, Ontario and Nova Scotia having no limitation period that binds them from recovering money owed. 
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 bladerunner12 Quote  Post ReplyReply Direct Link To This Post Posted: 28/September/2016 at 9:19am
That is correct 6 years from last acknowledgement be it a payment or something signed by you stating acknowledgement like there illegal financial questionnaires. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 29/September/2016 at 5:42am
Well illegal, no. Hook line and sinker with the intent to protect their best interest, yes. Wording is what they are really good at. Protecting people from their wording and slippery ways of luring and setting those hooks is what we are good at. :) 
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 bladerunner12 Quote  Post ReplyReply Direct Link To This Post Posted: 29/September/2016 at 3:17pm
Are the CRA collectors for student loans the same one for tax debts just curious.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 03/October/2016 at 1:05pm
No. tax and non-tax are separate. 
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 bladerunner12 Quote  Post ReplyReply Direct Link To This Post Posted: 03/October/2016 at 7:14pm
Is it still CRA policy not to send cases to the legal department when the statute of limitations has reached 1 year mark or less?  I read it some where In CRA policy that the legal department does not want cases that are within one year of reaching SOL. Im guessing not enough time to prepare.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 08/October/2016 at 5:20am
Back before CRA was handed the responsibility to collect student loans it was HRSDC collection services. Back then, if a private agency was involved then the referral for justice had to be made a minimum of 6 months before the limitation period would expire. The same applied for for HRSDC government collection agents. 

CRA Legal Services and their non-tax collection team is far more aggressive and efficient than the old collection regime. If they can jam out a SOC and have it served on someone a day before the limitation date then so be it.  

The government's policy is to find money in any way that can be done. Truth matters less. money matters more and that is the business model of that crown financial sector. 
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 bladerunner12 Quote  Post ReplyReply Direct Link To This Post Posted: 08/October/2016 at 1:38pm
Thats really brutal, sounds like something they would do though. Thanks for the answer Johnny.
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