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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sidwil View Drop Down
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    Posted: 25/November/2004 at 8:47am
Any help appreciated. I went to grad school in the States and had to use a TERI loan, which is a private non profit organization. I went into Bankruptcy in Ontario in Feb 04 and they are opposing my discharge stating they should be non-dischargeable under the changes to the student loan act. I do not think the changes (10 years) would be applicable however has any one heard of similar dealings or rulings.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 25/November/2004 at 9:23am

 

 Usually these American non-profit lending authorities require an endorsement (co-signer). In other cases it is not required. For Canadians in the USA seeking funding for school, this is usually their option for finance.

 You hav raised a really good question here. Technically, if you are a student in Canada, and have filed bankruptcy, then Canadian student loans are not dischargeable until 10 years from ceasing to be a full or part-time student. If you went bankrupt in the USA, then your "American" debts would apply, but not your Canadian Student loans because of the act and legislation.

 To my knowledge, they wouldn;t be "immune" to bankruptcy proceedings, however, any creditor or lender of yours reserves the right to opose your discharge. When this happens, it will tie up these proceedings and you might be left holding a debt to be paid as a "condition" of your discharge. This is what they call a "conditional discharge".

 They are oposing your discharge so it doesn't really matter if or not section 178, or aany other related section(s) apply. They can state that the rules should apply to them regarding section 178, but that is just them "hoping-assuming-wondering". To my knowledge, this debt does not apply. They are simply oposing your discharge as a last-ditch effort to salvage their investment and potential return.

 Take the HRDC for example ... they opose the discharge in pretty much all cases unless they are convinced that there is absolutely no way for the borrower to ever pay it back, or if there are other extenuating circumstances that would favor a discharge. Either way, it is difficult to achieve.

Contact the Superintentdant of Bankruptcy Office in Ottawa. They will be able to give you a more conclusive outlook.

Johnny

 

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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Office of the Superintendent of Bankruptcy Canada

Jean Edmonds Tower South

365 Laurier Avenue West

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Ottawa, Ontario

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website http://osb-bsf.ic.gc.ca

professionals built the titanic but amateurs built the ark...
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Thank You both for the reply. I will let the forum know what happens .
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Help...bankrupt Quote  Post ReplyReply Direct Link To This Post Posted: 20/December/2004 at 3:01pm

Sidwil

I have declared bankruptcy and my TERI loan was discharged.  It is not a canadian student loan.  Hope that helps.  Your trustee should know that.

 

Desperately need help!
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sidwil.......how did this situation turn-out?
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June 2012

Hi guys,

 

RE:  TERI (THE EDUCATION RESOURCE INSTITUTE), who filed for Chapter 11 Bankruptcy in 2008.

 

Here is my experience, and please read ALL of it … in the beginning, 1999, I thought I was the only one having problems, but after calling dozens of people, and fully disclosing and sharing information with 8 other graduates, WE ALL had the same problems with these loans, regardless of province or graduating years; I was not the only one.  In the end, all 8 of us DEFAULTED for the exact same reasons.  Now, it wasn’t about lack of revenue for some of us, but it was because of their and their associates’ business model.  Read on …

 

Now, to answer the question, the loan is an AMERICAN loan and cannot be upheld in a CANADIAN court of law ... they will try to uphold it, they will scare you, they will threaten your credit, they will harass, but they CANNOT cross international borders ... the law in Canada is different than the law in the US. PERIOD!  TERI is based out of Boston, Massachusetts (MA) therefore, the loan is based on MA state law, not Canadian or provincial law.

 

Even if you defaulted or declared bankruptcy, they will threaten, and will sue, but in the end, the judge here in CANADA can only uphold the CANADIAN law, NOT A STATE or AMERICAN LAW.  REGARDLESS of what THEY SAY!!!  THEY CANNOT CROSS BORDERS!

So, let them take you to court and they WILL lose – Google TERI lawsuits/bankruptcies and find out for yourself.

 

DO NOT SUBMIT TO FEAR/THREATS BECAUSE OF YOUR LACK OF KNOWLEDGE … GET INFORMED!

AND DO NOT GET THE FILE “TRANSFERRED” TO YOUR PROVINCE.  Once transferred, then and only then, will the CANADIAN law be applied to the loan(s) … DO NOT TRANSFER!

 

I see this loan in 2 ways after being in business for more than a decade following graduation.  First, it is a privilege to have access to money as easily as TERI’s loans for education, but it comes at a huge cost, and I mean huge (from my $20k of borrowing and another $2k for guarantee, it was predicted that I would pay back more than $80k by the time I finished – and believe me, they will try and push the 20 year barrier); and abusing the system only makes the system harder for others; look at TERI today, it is not guaranteeing money at the moment – oh, and they themselves filed for Chapter 11 bankruptcy in 2008).  Do you care?  Probably not!  Second, business is about making money and a penny saved in today’s economy, is like 2 pennies earned.  Defaulting on your student loans, although immoral and unethical, is NOT illegal.  You have a right to default.  Depending on your province, there exists statute of limitations as short as 2 to 6 years (Alberta is 2 FTR).  Therefore, after 6 years in default, THEY CANNOT DO ANYTHING.  So, not only can they not cross the border to pursue you legally, but they can’t even enforce the loan.  2 whammies … They will try, but they can’t.  And trust me, they will say anything, and I mean anything, to try and get you to shift, swindle your mind.

 

I love sharing this information, because it will save someone a lot of headaches in the future for “misunderstandings”.  And that’s what they’ll say, “We’re terribly sorry, but you misunderstood what we said.”  NO … I DIDN’T!

 

My story …

 

I know that the thread is old, but, if someone happens to come along, even in 2012 or later, then maybe this will help ... in summary, I'm PISSED that I signed for this loan ... I didn't have to, but I did ... what a mistake!  Thinking it was going to help create a credit history … wow, what a nightmare.  And I’m very happy I defaulted … no regret, no shame … just upset at this fraudulent business model that TERI is associated with.  But in the end, I settled with TERI, putting the default behind me.  I have been honest, I have been fair, I paid 24 consequence monthly payments, following graduation, and after the BS, I finally said enough!  Shame on you and your associates TERI!!!  Shame on you … oh … and after reading further reviews on the net, TERI filed for chapter 11 bankruptcy in April of 2008 … what comes around goes around I see.  Here is the link …

http://www.businesswire.com/news/home/20080407006476/en/Education-Resources-Institute-TERI-Files-Chapter-11

 

And you know what, today’s society is getting smarter, and this nonsense about the student default rate being so high for so many reasons … well, let me add a comment, STUDENTS KNOW THEIR RIGHTS AND QUESTION EVERYTHING TODAY … AND WHEN YOUR SCREW SOMEBODY … IT GETS AROUND.

 

A couple of examples for why I’m pissed.

1)    “One time” guarantee fee, is for each TERI loan.  The loans are not cumulative like the CSL loan, rather, independent of one another.  Falsely implied during disclosure; I expected 1 guarantee fee for ALL loans, not several, and was surprised at the second “one time” charge.  Never got a third for obvious reasons.

2)    6 months after graduation, my loans swelled to a whopping $27,000 US including the guarantee fees (just a comment, shows the growth of compound interest at 12%), when I began repayment.

3)    My repayment term was changed from 10 to 20 years, without consent when my loans were sold to another lender after graduation.  I requested it be changed back to 10 years; new lender said terms have changed, it’s 20.

4)    I requested buying out the loan originally, and they said I couldn’t; it was like a mortgage, in it for the long haul, in my case, 20 years without consent.  My consent was 10 years.

5)    I often received my statement, late, after deadline.  21 days minimum from the US to CANADA, yet, only 5 days from CANADA to the US.

6)    I made 24 consecutive monthly payments on both loans (that means 48 money orders), first class mail, with Canadian Post US money orders; they ALL have a serial number and are completely traceable from CANADA to the US.  We could see who cashed it, which bank and branch, what day and time when requested from the Post Office.  And after 24 consecutive payments, ONLY 16 were applied to the capital and interest of the loans on the day they received the payment in the US.

7)    4 payments were NEVER CREDITED, yet, WERE CASHED, YES, CASHED.  PROVEN with the traceable money order!  Because these 4 monthly payments were never credited, interest accumulated for 30 days until the next payments arrived.  So, not only did I lose the 4 payments totaling $1,280 US, but my loans increased by approximately $1,120 US over the same period (yes, $280 US a month in interest), resulting in $2,400 US of additional responsibility plus compound interest I might add on the interest added to the loan.

8)    4 payments were credited 30 or more days AFTER receipt.  PROVEN with the traceable money order!  Once again, another $1,120 in interests accumulated.  All I got were excuses when I contacted the lender on all occasions … “It was in Canadian currency and had to be transferred” they answered.  “NO, they are not in CAN, they are in US … it says it right there on the money order!” I replied.  OR “We never received your payment!” they affirmed.  “NO, you cashed it on such and such date”, I confirmed.  Just excuse after excuse after excuse. 

9)    Now, if you’re not a math guru, let me explain - I’m getting screwed.  By the time 24 months passed, I paid more than $7,600 US (loan 1 = $160x24, loan 2 = $160x24), and my capital INCREASED beyond the $27k US because of THEIR errors on 8 payments (that’s a total of 16 payments because I have 2 loans remember)!  NOT mine!

10) So, I defaulted on the loan, demanding an explanation from both TERI and the lender, and refused to pay until my loans were corrected.  Unfortunately, in the beginning, I only made phone calls, and they went unheard … until, I got a lawyer involved.  My 8 other friends FTR, complained about the exact same things.  One month went by, then 2, 3 … and nothing for months thereafter.  Finally, 6 months later, I got a response … creditors.

11) By this time, the 3rd lender bought/transferred the loans and only had a “total” of the loan on their computer – NO history of transactions.  When, I got a lawyer involved and requested all historical transactions, they strongly persisted that I owed “x”.  When we contacted the previous lender, they refused to help because the loans were no longer their responsibility.  After more arguing, finally, the lawyer broke through and received a historical summary after our own threats of litigation, proving what we had been talking about all along – as far as their records were concerned, not only did I have a problem but, I “only” paid approximately $700 towards each loan ($1,400), what a joke; and to be honest, the person explaining the sheet, confused it herself on so many different levels.

12) Because the lenders couldn’t explain their actions, I continued to refuse to pay, and thus, continued to be in default until they found my money.  And … nothing.  At this point, more credit agencies.  I was called a dead beat borrower, and low life student with hopeless dreams, scum of the earth, pay your debts you loser, and so many other things.  Once I sent them a history of payments and referred them to my lawyer, the credit agencies stopped, only to have another start a few months later.  I think 5-6 were involved over short period of time … each time I barked back with evidence and referred them to my lawyer.  They do get nasty for the record: just refuse to talk and request everything in writing.  Any persistent unwanted call is ground for harassment.  Oh yeah, you can’t sue, so, block the number.

13) Finally, they sued, so I defended.  And here is my counsel’s mistake; he transferred my loans to the province of Quebec, “Where we had a better fight.”  I argued with the lawyer on several occasions about this move, refusing to transfer the file, and he went ahead and did it anyway.  I was pissed, and got a bill for $1,600 for a day’s work.  I had spoken to several other lawyers from out of province, friends of mine, who all said the same thing: they cannot sue internationally.  PERIOD!  Just throw the papers out!  They have no merit.

14) Quebec is a different province I will admit, and all I got from the lawyer was, Quebec is different and he wouldn’t listen to other lawyers.  And the result? We lost several judgments with his actions because of his willingness to be different.  In the end, the results would have been similar to other provinces.

15) When we presented ourselves to the judge to finally say this loan is BS after the unfortunate transfer, the judge overruled and said that the loans now abide by Quebec law, and that everything in the loan documents will be upheld and respected because it was transferred, “by transferring the loan, you agree to the terms of the loan” the judge said.  Also during the proceedings, the judge said, “Had you not transferred the file, this loan would have no merit in the province of Quebec.”  Exactly what other lawyers in other provinces said.

16) Now that we had to fight the loan in la belle province, and once I showed that I was ready to go to court, and proved that they were committing fraud (purposeful deceptive business practice) they did everything to try and settle, avoiding court room drama.  And sure enough, we settled.  I offered to pay the original amount of the money borrowed, $22k US, whipping more than $10k CAN from the accrued interests, and they agreed – I was very generous some have said, and I agree.  I was a doctor and had the fortune of becoming a doctor, partly because of their generosity in loans.  But I was not prepared to get screwed by nobody with this BS.

17) Fortunately, I was in a position where I saved well above $30k CAN to pay the $22k US at the time (horrible exchange rate FTR), and I had the money to go to court, and I was willing to go to court.  To be honest, after the BS, I was prepared to spend $30k CAN in court, rather than give these guys a dime.  In the end, we settled out of court.  When I made the offer of $22k US to my lawyer, their decision was done in less than ½ second.  I could have low balled them, but I DID NOT STOOP TO THEIR LEVEL and took responsibility of my loan, NOT their “business” model.  In the end, I was happy, I respected my loan and I got out of their “trap”.  It did cause a lot of problems and a lot of wasted time and energy, and business 101 will teach you that, be the center of attention by causing $#!^.  Regardless of whether it is good $#!^ or bad $#!^, $#!^ still has to be shoveled.

18) The other graduates learned and reacted accordingly to my result, I was the first, so I led the pact, learning my legal rights, evidently, sharing my story … now, I did not make decisions for them, but definitely laid the ground work for them to make better educated decisions.  ALL defaulted FTR.

19) One of the 8 friends never even bothered paying a dime to TERI or their lender after hearing what happened to us.  He said he wasn’t even going to get involved, to hell with them, AND, he borrowed $75k US, never declared bankruptcy, and it never showed up on his credit report, NOR did he get sued.  He is in Alberta FTR.  Statute of limitations has passed long ago (only 2 years), and has never heard a word since.  Now, I’m not condoning his behavior and argued with him to pay, but, in the end, it was his decision.

20) I attempted to put together a class action, but putting it together proved cumbersome, and I realized that my time was better spent taking care of patients and saving people’s lives, then waste another minute on this nonsense.

21) Although I never really saved much from this loan in itself, adding lawyer fees of $7k CAN and a lot of time and energy, I was still fair; that can’t be said about TERI and their associates.

22) Today, 10 years after being in business, what would I have done you ask?  I would have told them to go screw themselves after the first neglect of financial responsibility, and waited for them to take me to court.  Oh yeah, that’s right, TERI CANNOT SUE CANADIAN STUDENTS.

23) This report was written in 2012, but everything happened from 1999 to 2003.  So, I cannot speak for anything that has changed, or has been affected in other years.

 

Do your research!

A better educated mind can make better decisions.

Do not let the shadow of doubt and emotion, cloud your judgment … get informed!

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