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 LockedWhat you pay vs what’s applied

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SusanfromAB View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SusanfromAB Quote  Post ReplyReply Direct Link To This Post Topic: What you pay vs what’s applied
    Posted: 01/November/2006 at 5:23pm

How about this...I was just looking over my student loan payment history and have made a SHOCKING discovery.

On my provincial student loan:

Original amount owing = $6173

Current amount owing = $5310

Amount paid on principal = $863

HOWEVER, I have been making payments for over 3 years now, for total of $2314!!!!  That's only 37% of my payments that have been put to principal!!!!!!!!  Is that right?  Does anyone have any insight on this???  This is disgusting - is there any way to get this changed???

I did the same calculation on my Canada Student Loan and, at least on that, the amount applied to principal is 74%.

I can't do the same calculation for my RBC Student Loan because they don't send me detailed statements.

No wonder it's so hard to pay these loans back! 

Susan

 

Hitting them hard!
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marmar View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote marmar Quote  Post ReplyReply Direct Link To This Post Posted: 11/January/2007 at 5:52am
Hi
Just wondering if you had any more info on this, cause it really does seem  crazy that one loan can do it but the other can not.
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BigFatherA View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote BigFatherA Quote  Post ReplyReply Direct Link To This Post Posted: 13/January/2007 at 1:03pm
Lets see:

Principle:  $6173 to $5310:  average:     $5742
Take an average 8% interest:
Three years on 5742:                              $1378
Total paid :                    $2314
minus interest:              $1378
Principal payment:         $936
At 9% interest:               $764

Your effective interest rate is 8.5% which is typical for a provincial student loan.  Welcome to the wonderful world of debt Angry
BigFatherA
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non carborundum illegitemi est
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hunter View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote hunter Quote  Post ReplyReply Direct Link To This Post Posted: 28/February/2007 at 9:55am
All I know is that they take whatever you pay them and it goes to interest.
Currently my debt owing is $ 13,000. I pay $ 125 each month and $ 67 goes to interest.
At this rate it will take 12 years to pay them.... but hey eventually it will get paid.
and I am not losing any sleep over it....
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Southpa View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Southpa Quote  Post ReplyReply Direct Link To This Post Posted: 28/February/2007 at 12:39pm
Hmmm...my debt owing was approx. $22,000 as of 1997.  Since then I've payed out over $10,000 thru personal cheques and income tax refund/GST seizures and now my debt is near $30,000.  How much of what I paid has gone into reducing the principle?
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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: 28/February/2007 at 4:11pm
IS this number from a recent statement you received?
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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Southpa View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Southpa Quote  Post ReplyReply Direct Link To This Post Posted: 28/February/2007 at 7:36pm
Yes, thats from the most recent statement I received (Feb 2007) from Social Development Canada, actually $29,965.51.  I have an earlier statement (2003) from TCH International when it was $24, 526.00.  I WAS making payments when I could and all during this time my Income tax returns and GST were being withheld.  When I saw my balance owing going UP rather than down I opted to stop paying.  I've already posted in this forum about this matter earlier.  I don't believe in throwing away hard earned money for the rest of my life for no good reason.  Just a word of warning for those who have a substantial debt like mine and can't afford their minimum payment.  Any token payments will get swallowed up by the big monster with nothing to show for it at least thats how it seems to be working for me. 
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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: 01/March/2007 at 4:32am
Funny as it sounds, you can not go by the numbers that the government provides you. In many cases, their figures are not correct, especially for those accounts that are assigned to a third-party PCA. The government really does immediately know what the collection agencies have recieved as far as payments go.

If you need help, let me know.

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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hunter View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote hunter Quote  Post ReplyReply Direct Link To This Post Posted: 01/March/2007 at 5:19am
Southpa

Something is not right at all.. I get a monthly statement from SDC as well, and I can see where my payment is going... mostly to interest...but the balance is coming down each month...

Ask to see all the paperwork and in detail....something is not right...
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