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: 25/May/2017 at 5:50pm
I attended university from 2000 -2005.

Upon graduation I spent 2005-2007 putting a big dent in my student loans. 
I got married in 2007, got pregnant, and went into Kidney failure.
I lost everything. Only had a 50% chance of survival, didn't think the baby was going to make it (stopped paying my student loan because I was dying and it was the last thing on my mind)

I survived, the baby survived but my financial situation was decimated.
I may have made one payment or set up a payment plan in 2009 but never followed through because I was literally barely keeping anything together at that point.

In 2010 I entered bankruptcy. I asked the trustee if my student loans could be added and he said no but told me don't pay them, don't acknowledge them, just let them take it out of your tax returns, don't talk to them and don't sign anything. When I pushed for why he was giving this advice he said he wasn't at liberty to go into deeper detail and to just look it up. 

I tried looking it up but was confused as all F. 

I was in no position to pay anything back. I was recovering from the kidney, had new baby, was in bankruptcy....

I took his advice though. 
I haven't paid or acknowledged or talked to anyone about them since.

Every month I get a statement from them and the $7500 that was outstanding (when I graduated I owed close to $30K but managed to aggressively get it down to $7500)  is now at almost $23K

I am trying to understand if my loans fall under limitations or if they are the ontario ones that have no time limit.

My statement reads like this:

CAN-ONT STUDENT LOAN (represents federal portion only) CDON

$19,337.31

DIRECT FINANCING STUDENT LOAN CSL4

$2,679.00

So I guess my questions are as follows

 - since the laws changed in 2004 does that mean that everything that came before that (2000-2004) is not subject to the ontario no limitation collection and that only 2004/2005 ontario portions would be subject?

- what the F does represents federal portion only mean? does that mean it is not ontario and thus falls into the 6 (or maybe it is 7 years) limitation on collection?

- if the CDON one is ontario does that mean there is no limitation on it? Is it integrated so only a portion is Ontario? Why does it say federal portion only?

I had every intent to pay this off in the world. When I graduated I put every cent I made into paying it off, then life happened. My bankruptcy has just fallen off my credit report and now I am scared that if I contact them to figure things out, or if I make any payment on anything I will be literally doomed to another 7 years of crap credit.

It isn't on my credit report at all. No credit collectors are calling me but I just got a letter from the government telling met to pay it in full in 15 days. 

It has been 8 years now since I have made any contact, payment or admission.

I would really appreciate some clarification on this. Just when I think I have my life back in order, BAMN this. 



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Anyone? Please. 
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anyone?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 27/May/2017 at 4:00am
No one here can tell you whether or not your loan or loans are statute barred. It has to be researched. 

You wrote: 

"In 2010 I entered bankruptcy. I asked the trustee if my student loans could be added and he said no but told me don't pay them, don't acknowledge them, just let them take it out of your tax returns, don't talk to them and don't sign anything. When I pushed for why he was giving this advice he said he wasn't at liberty to go into deeper detail and to just look it up." 

Perhaps it is time for the government of Canada to be a little more selective in who they allow to administer a government service and program out in the private sector.  

In the province of Ontario, the limitation law that was amended on April 1, 2004 cites no limitation period is in force to loan contracts entered into on or after April 1, 2004. Loans taken out prior to April 1 may be subject to the prescribed limitation period outlined in the prior limitation of actions and proceedings law for Ontario. 

So, if your Ontario loan contract was entered into before April 1, 2004 then you have a case. However, just because a loan contact was entered into before April 1, 2004, and you believe it is statute barred just because of a lack of activity on your part, it doesn't mean the loan is guaranteed to be statute barred. 

You asked: 

"if the CDON one is ontario does that mean there is no limitation on it? Is it integrated so only a portion is Ontario? Why does it say federal portion only?"

CDON simply means Canada-Ontario integrated. When a CDON type enters into default then the federal government is responsible to collect whatever amount they are claiming as a loss.  When you ask what does "federal portion mean, this is the answer. 

You wrote: 

"and now I am scared that if I contact them to figure things out, or if I make any payment on anything I will be literally doomed to another 7 years of crap credit." 

The governments (thanks to the involvement of the banks in the risk-shared program) know what people fear the most when it involves "controlling" how people act and behave while indebted to them. Damage to a credit report is the number 1 tool they have because they know that people now more than ever depend on credit, and having a good record of it, is key to maintaining a desired lifestyle and even survival in a lot of cases. This represents a fairly large dent in our current national economic crisis. 

This really started in 1995. As soon as the banks somehow got "inside" and endeavored the risk-shared model of business, that is when the real trouble started.  You can see how messy it has become ever since. Banks know how to make money. However, they soon realized that there was no real money in the Canada student Lending market because the availability of jobs and opportunity for graduates was dwindling lower and lower. When student loan borrowers can't repay, the banks do what they do best - abandon you at the point where they realize there is no money and return on their investment. The banks wanted out really fast and part of their cutting their losses was catastrophic to the student loan borrower population.  

The Canada student loans program became a program in 1964. Before that, the national student lending program was called Dominion Provincial Student Loans Program. Between 1664 (Dominion Provincial) and 1995 student loans were provided by banks. However they were all fully guaranteed and the banks were happier. After 1995 something went terribly wrong with a business idea that was presented as being a huge opportunity.   

Today, government of Canada knows it's a win-win situation for them because of the power they have, along with bank mentality. 

1. They are able to use credit reporting agencies 
2. Their federal and provincial set-off programs are a guaranteed money maker
3. The crazy interest keeps people in debt 
4. They have an unlimited supply of cash to impose their will on anyone at any time to make life lets say, a little rough. 

 
 

 








 
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 confusedont Quote  Post ReplyReply Direct Link To This Post Posted: 27/May/2017 at 8:53am
John I appreciate your feedback. 

I am still totally confused though. I don't know what to do or where to go for help. I don't want to trigger a series of unfortunate events. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 29/May/2017 at 1:50pm
If you want to benefit from a limitation issue and determine if it is right for you then you hire someone to do this work for you if you can't do it yourself. The only way to know what is going on in the back end of your loan file is to go in and see what is going on. It is not something you or anyone can do without approaching them.  

The key is to be able to get in and go through it without letting them get to you - and undermine you and your goal. 

The 2 things student loan providers detest most is a limitation discovery and an informal settlement proposal that is well below what they consider to acceptable. 

You can look at the many lawyers in the world and hire one who is into that sort of gig if you can find one at a cost that is reasonable, or you can find someone like my group that specializes in this sort of stuff at a heck of a lot less of a cost. If you are going to hire someone to do it you are going to have to invest. 

Now, my concern in your case is that your bankruptcy trustee screwed with any limitation benefit. The problem with bankruptcy is that, once filed, it constitutes as acknowledgment. Also, the notice of discharge that the trustee is required to submit that discharges themselves constitutes as acknowledgment. 

The day you were discharged (if that was the result) and the day the creditors or student loan providers received written notice, that would reset the limitation clock on a loan whereas the applicable limitation law prescribes a limitation period. 

Fast forward 2, sometimes even 3 years from the date your discharge papers were received by them ... the creditors receive a written document outlining their discharge from the bankruptcy. This again resets the limitation clock. 

You have to think of a number of things when you are trying to remedy student debt issues (or any debt matters) post bankruptcy. You also now have that negative identity called being a "bankrupt". They see the world a certain way based on their training and experiences. They will treat you and behave towards you in the same manner as they view you. 

I am an expert in this arena, the cultural, social, and behavioral aspect of the human component within the Canadian financial and government sectors, and creating positive change one case at a time. It's a very unique and scientific gig here. 


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 confusedont Quote  Post ReplyReply Direct Link To This Post Posted: 29/May/2017 at 2:10pm
So very upsetting to hear. Feels like life has it out for me. I mean I really didn't plan kidney failure, not that they care. Up until that I had literally flawless credit and was one to aggressive and rapidly pay off all debts. Somedays it just makes you feel like giving up. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 30/May/2017 at 5:33am
If you are in hardship now then you can approach the minister in charge and request that the loan be taken out of active recovery. Very difficult thing to do but it is doable if the conditions are right. However, if you are in a better professional and economic situation now than what you were in, the task get even more difficult. 

You can always call the trustee and get them to send you a copy of their discharge document that applies to their release from you and the proceedings. The bankruptcy trustee may tell you that you have to pay a fee for that, but at least you will have that information and potentially something to work with. 




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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First of all, statute of limitation and reporting to the credit bureau are two separate things.

Statute of limitation is applicable to legal action to recovery of debt.

 

I can provide a better answer if you can give more information.

1.       Did you receive the letter from the federal government or the provincial government? Have you called them?

2.       Have you contacted OSAP to find out how much is owed to the province and to the feds?

3.       Are you in a position to work out a payment plan?

4.       When did you complete your education?

5.       Have you considered a consumer proposal?

 

Once you find out where your debt is, call the feds/province and ask if you are eligible for rehab.

 

As long as the file is within the government your credit is not going to be impacted. You will have an I-5 rating which will be removed if you are approved for rehab. But during the rehab program (usually 6 months) you will be given an I-9 rating. Once you complete rehab the student loan item will be removed from credit report.

 

I am a student loan collection officer. I know what I am talking about.

 

PS. Your trustee screwed you about the student loan. He/she knew very well that the student loan will haunt you. You are not the only one though. I have seen many students getting bad advice from trustees and ending up with student loans.

 

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