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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Forum LockedShould I repay my student loan?

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Alexandria18 View Drop Down
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    Posted: 21/November/2017 at 7:07am
Hello,

I have student loan debt opened in 2008 (both the federal and provincial portions) toward which I have not paid since 2012.

On my equifax statement it shows the federal portion under credit files and it shows the provincial portion under collection files. 

The last date of activity for the federal portion is september 2012 and for the provincial portion it is october 2012.

The provincial portion has been taken over by ARO inc and is reflected as a collection file as I stated.

I'm wondering what the outcome would be if the 6 year mark is hit (next year september/october) for both portions of this loan. 

If the ontario portion is in collections can i treat it like any other loan gone to collections and simply let it fall away after another year or so? And does this apply to the federal portion as well? 

I was looking to begin taking care of this debt once and for all but I just want to understand how the limitations apply with regard to my current situation. Thank you!
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jjunket View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote jjunket Quote  Post ReplyReply Direct Link To This Post Posted: 28/November/2017 at 6:48am
In Ontario, there is legislation that prevents the provincial portion of the student loan from dropping off of a credit report - pretty much forever.  This has been discussed in a couple of threads here.

Other provinces, I'm not as sure on the rules.

The collection might drop off after 6 years, but essentially as soon as anyone notices, or it bounces to a new agency, it runs the risk of being put back on.  If it does drop off, it's likely just an oversight.

For me, the best bet was to rehabilitate both sides of the loan (I did federal first, provincial second).  Apparently, after the rehabilitation of the provincial part is complete, the collection should be removed.  This remains to be seen - my loan goes back to NSLSC in early 2018, I will make an update somewhere on these boards after I find out.

Based on the reading I've done, it squares up like this:

Federal part - if ignored, may proceed to legal action
Provincial part - less likely to sue, but the credit consequences will last forever (in Ontario, at least)
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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: 29/November/2017 at 4:04am
Nova Scotia and Ontario are the only 2 wheres they are not bound by any limitations. Ontario loans that are VERY old and had been in default on or before Jan 1 1998, then there these Ontario loans may be bound by the prior law. 

A debt that is confirmed legally unrecoverable cannot be reported. Sometimes though the creditors have a difficult time distinguishing between "should not" and "cannot". The onus is up to the person who it is being reported on to make the argument though. 
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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