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: 10/December/2004 at 6:59pm

Below is a letter I sent to each and every MP with the hopes that the majority of all MPs (154 + 1) will actually hear my plea that the law that bans student loans from discharge should be thrown out ... this letter contains all pertinent information describing my situation:

Dear Member of Parliament:

 

Allow me to introduce myself. My name is Brian Vincent, B. Sc. residing in Humber-St.Barbe-Baie Verte. Please take the time to read this email very carefully. I have a very urgent matter to address and it concerns every single Member of Parliament. I am asking that each and every MP band together, as many as possible, to pass a Bill which would eradicate the 1998 Education Budget amendment to the Bankruptcy and Insolvency Act (Part VI: Bankrupts, Section 178, Paragraph “g”) that prohibits Student Loans from being discharged through bankruptcy for a period of 10 years.

 

After doing a great deal of research, I have found that the majority of people, to no surprise at all, are making an honest effort to pay their student loans when the level of income is sufficient. With strict bankruptcy procedures overseen by a trustee, it is very, very difficult for one to abuse the bankruptcy system. But what about those who honestly cannot pay for these debts? All of my options to relieve this financial burden, both with the Federal and Provincial student loans, have either been exhausted or there are Catch 22’s that disqualify me. Such options include the following:

 

  • Interest Relief – All 54 months of available interest relief have been used up on my Canada Student Loans, as well as all 24 months of interest relief on my CIBC Newfoundland Student Loans. By all means, Provincial Student Loans are nowhere near as generous in terms of offering Interest Relief.

 

  • Debt Reduction – I do not qualify for debt reduction on my Canada Student Loans because past due payments after my interest relief expired must be paid first. While the application for debt reduction is being processed (usually 90 days), I have to be making payments. To get Debt Reduction, I have to be working a decent job in the first place to keep my CSL’s in good standing. What about someone like myself who is unemployed and/or on Social Assistance?

 

  • Loan Remission – This Newfoundland programme is a form of debt reduction on the CIBC Newfoundland Student Loans. I did not qualify because my university degree was not completed in a “timely fashion” (4 years plus a one academic year grace period in the case of an undergraduate degree) and my Information Technology course was not 80 weeks or more in duration. Due to living expenses, tuition fees, book costs, and course availability, combined with a maximum limit that can be borrowed each week, I was forced to take only enough courses in university each semester that kept me a Full-Time student. Thus, it took me 6 years including two summers to finish my university degree.

 

This is why the Canadian Federation of Students took this matter to the Supreme Court of Canada to have this law thrown out. So-called initiatives like Interest Relief, Debt Reduction, the Millennium Scholarship Fund, and Tax Credits do not compensate for, nor does it warrant, having bankruptcy protection denied for 10 years after ceasing studies. This is the argument that the Jean Chrétien/Paul Martin Liberals have presented in defense of this law. These initiatives, made rather pathetic by all the catch 22’s and lack of comprehensiveness, do not ease student loan debts in most if not all cases. This legislation to amend the BIA was buried so deep in the 1998 Education Budget that many MPs, including Liberal MPs, did not know they voted for it. If you are one of the MPs who voted for this amendment to the BIA without knowing what you voted on, you are strongly urged to take this factor into consideration when voting to have this amendment thrown out.

 

With no bankruptcy protection, I have no way of getting a fresh start for a very long time assuming that no lucrative job offers come around. The courts have no discretion in terms of hearing hardship cases. I have been an honest person with good intentions all my life, as well as a tax-payer, a voter, and a Canadian citizen who hopes that true principle and democracy will prevail regarding matters such as the one I have brought forward. I am aware that the Supreme Court judge handling this case is due to pass down a verdict anytime soon after a decision last June 16th was made. Because I am being realistic (not pessimistic) that the judge handling this case is not likely to rule in favor of the Canadian Federation of Students, I am calling on all MPs to carefully consider this matter and have this amendment to the BIA thrown out. Obviously, this would have to take on the form of presenting a Bill in Parliament and achieving the majority vote necessary to have this law removed.

 

In case you maybe wondering why and how I fell into this situation of being unable to make payments on my loans, aside from all the feeble debt relief measures that I tried to explore, here is my story:

 

I pursued a post-secondary education so that way I can compete in this so-called Global Economy. I knew that having a High School Diploma doesn’t guarantee much more than minimum wage compared to a few decades ago. With that mentality, I went and pursued a chance to one-up myself in a competitive world and to get out of living in borderline poverty having being raised up in a working-class family near the fringes.

 

I had high hopes that my hard work attending Memorial University for my Bachelor of Science degree, and my Computer Studies course at Keyin Technical College, would allow me to have at least an adequate standard of living and meet my financial obligations. But I have gotten turned down for every application for employment in the Public and Private Sectors due to two reasons:

 

  • From an employer’s perspective, I am deemed under–qualified and/or inexperienced. I was often told that I would have to move to the United States or even Western Europe to gain experience and then move back to Canada once I got the experience necessary to compete for jobs here in my home country. To move to the States or Europe would have had to involve saving up lots of money. With just the clothes on my back, and no connections such as friends and relatives living in employment hot spots, to try to move would be a futile attempt.

 

  • The Information Technology course I completed was not recognized by employers due to the fact that I attended a Private College. This course I took was approved by the Department of Education of Newfoundland and Labrador and yet the Public and Private Sectors have not honored it.

 

A big problem with this so-called Global Economy non-sense is that with so many jobless people in Canada, employers know that there are bound to be experienced, seasoned workers out there. So why would they bother hiring on someone with lots of training, but no work experience? This is a very negative mentality that employers have which needs to be changed. Also, I have discovered that my university degree would have gotten me a job 20 or 30 years ago. Nowadays, that same job now requires a Master’s Degree or a Doctorate due to the fact that this so-called “greater accessibility” to getting a post-secondary education has flooded the market with so many graduates. So with no more net jobs having been created, my education doesn’t give me a chance to compete. All in all, it has created a situation where supply versus demand is not working in favor of the educated person like myself and quite a few of us are debt ridden with no way of paying off those debts.

 

Also, those of us like me who have to resort to applying for any work at all, such as the so-called “Mc Jobs”, often get turned down when a prospective employer reviews your resume and all of that post-secondary education you have. The concept known as being “over-qualified”, in other words, shows its ugly face. I have had potential employers for Mc Jobs turn me down because they perceived me as a threat to leave that job the moment that something inline with my training comes up. Those employers who see it in that light are ignorant of the fact that post-secondary education does not necessarily guarantee employment.

 

I want to conclude that my situation owing so much money, $39,450.39 as of October 15 for the Canada Student Loans and $24,179.41 as of November 22, has resulted in many, many sleepless nights thinking about how I am going to deal with these debts and how my financial future is pretty much set negatively speaking. I have developed anxiety and depression which is well documented by my family doctor. Also, the ruthless nature of collection agencies has become more ruthless because they know I have no bankruptcy protection and no doubt they will prey on that.

 

Therefore, based on Section 15 of the Canadian Charter of Rights and Freedoms, my inability to avail of bankruptcy protection on my student loan debt is unconstitutional because student loans are treated differently than other consumer debts such as those from credit cards, other loans, home mortgages, and financing/leasing an automobile. No doubt about it that this is pure discrimination. Also, I have to remind every single MP that the only other debts that cannot be discharged through bankruptcy ever include debts due to fraud, embezzlement, fines, and alimony/child support. Therefore, I feel like I am being treated as a second class citizen in this country. Therefore, I am marginalized and criminalized by such a law. Also, with this current situation in place, I am looking at having bad credit in the worst case scenario until I am in my 40’s. The worst case scenario being waiting 10 years to have my debts discharged and then another 6 to 7 years for this huge blip in my credit history wiped out so I can get a fresh start on my credit.

 

After all, if I have unforeseen circumstances that put people like me into a bankrupt state, I should have protection. It is time for government to look out for the best interests of its tax-paying citizens. Ask yourself this question: Why should everyone, except students with student loan debts, especially corporations and businesses who have millions of dollars in loans and interest written off, have bankruptcy protection? After all, the amount of defaulted government loans to deadbeat corporations and other businesses (principle plus interest) makes the amount of defaulted student loans look rather trivial. I took a venture no different than say an entrepreneur with a business idea and needs a business loan to execute his/her business. If that person’s business goes bust or the funds are misspent, he/she has bankruptcy protection.

 

There is no denying that I am in troubled times with a very uncertain future – a future that at one time seemed very bright and promising, but has now become bleak through no fault of my own. Not only has my education not yielded a decent paying job, but it has created a double-edged sword in that I have a debt that I cannot pay back. I hope that each Liberal, Bloc Quebecois, Conservative, and Independent MP can show the same kind of humanity and compassion, and share the same vision and common sense as their NDP counterparts, and do what is the right thing: abolish this cruel, barbaric, and unconstitutional law. Thank you for your time and consideration and I hope that true principle, integrity, and democracy can be restored to the Canadian Constitution and to the Bankruptcy and Insolvency Act.

 

Yours truly,

 

 

 

 

 

Brian Vincent, B. Sc.

The greater access to higher education, as a result of student loans, has flooded the job market. Therefore, supply exceeds demand. Thus our credentials are not as valuable as, say, 30 years ago.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 10/December/2004 at 7:55pm

 

 Very well written and articulated. Impressive. However, you and hundreds of of thousands are held captive within this exact same paradox. As for the bankruptcy issues, it could be described as more of a paradoxical injunction.

 You say that bankrupcty is not an easy program to abuse. There is proof that proves otherwise. One proof is to simply ask a number of people who filed an assignement wheras it had little - to no effect in relation to solving the problem. Or, ask those who suddenly realized that bankruptcy was not their best option after the fact.

 The truth is that it is easy to bo bankrupt if you owe other debt. It is as easy as this:

 1. You feel stressed and overwhelmed with a high debt ratio

 2. You need to find some confort and relief from this stress

 3. You think of bankruptcy.

 4. You then call up Bankruptcy Bob and Bankruptcy Is Us and schedule an appointment.

 5. Bankruptcy Bob greets you and tells you that he can give you a  fresh start. Please sign on the dotted line.

 You ask if there are any alternatives that will help you rather than bankruptcy ...

 6. Bankruptcy Bob says, Sure!!!! You may be better serviced by filing a consumer proposal because this is an alternative to bankruptcy! What a great idea! You then say, "I don't have to go bankrupt because there is an alternative!!!!"

 7. Bankruptcy Boob ..I mean Bob says pay me $800.00 now, and we will collect the remainder of the $2000.00 over the course. By the way, we will take 20% of whatever you pay as our fee over the next two, three ,four, five years on top of all of this. 

 Ask yourself this question ...

 Did Bankruptcy Bob ever once in the meeting even mention that fear is one of the most prominent contributers of bankrupcy filing? Did he once even tell you that by negotiating with your creditors could conceivably solve a large percentage of your own problem without having to end it with the big "B"? Did Bankruptcy Bob even once tell people that 90% of all legal action threats by collection agencies NEVER escalate? Or, what about the plain old fact that there may be no avenues of execution so therefore you are protected without this sort of assignment. What about being told that their competition called The CFW Group helps people steer clear of bankruptcy, helps them rebuild or reconcile vital financial relationships, educates people with the truth about ALL matters so things can be more easily dealt with or managed. Of course not. They are there to sell you a product and not tell you what is wrong with it.

 If something makes you well, there is nothing wrong with that at all.

That is that as far as how easy it is to become a statistic of bankruptcy.    

 

  

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 SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 10/December/2004 at 8:12pm

 

 The very thing that can protect an individual from making wrong choices while suffering from some level of psychasthenia (mental/emotional exhaustion) over finances is the art, or "gift" of "lateral thinking".

 Lateral thinking. A CREATIVE method of problem solving by reformulating the problem or looking at it from a different angle. This prompts "Vertical Thinking" as a process which entails finding methods and "defense strategies" for overcoming obstacles in the chosen line of approach.

 This "gift" is something I personally hold sacred.    

 

 

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 SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 10/December/2004 at 8:27pm

 

 Please disregard my first post... I did not convey it properly. I did not mean to write "abuse bankruptcy". I meant to write how easy it is to file for bankruptcy.

 

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 CARGO1 Quote  Post ReplyReply Direct Link To This Post Posted: 10/December/2004 at 8:37pm

I think it would be safe to say,  it is the ease of bankruptcy that opens the door to abuse.

John, you should use this quote somewhere on your homepage or use ita as your signature on csd...

 Lateral thinking. A CREATIVE method of problem solving by reformulating the problem or looking at it from a different angle. This prompts "Vertical Thinking" as a process which entails finding methods and "defense strategies" for overcoming obstacles in the chosen line of approach.

Troy

     

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 10/December/2004 at 9:03pm

 

 Yes, I thought about it.

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 SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 10/December/2004 at 9:19pm

 

 It contains too many characters.

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 SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 10/December/2004 at 9:20pm

 

 I guess I should use someof that lateral thinking as to how I going to makeit fit inthe signature box, huh?

Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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