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: 21/May/2009 at 4:35am

Today the federal finance minister introduced proposed amendments to the cost of borrowing regulations of the federal bank act supposedly to provide greater disclosure for consumers for credit cards.

 

They snuck in the following new amendments (c) and (d).

 

2. These Regulations apply to credit agreements, other than a credit agreement entered into

  

(c) under the terms of the Canada Student Loans Act

 

(d) under the terms of any Act of Parliament or of the legislature of a province that relates to student loans and that requires the rate of interest or the

 discount that may apply to the borrower to be

 

disclosed to the borrower.

 

http://www.fin.gc.ca/n08/data/09-048_2.pdf

  

Under the current cost of borrowing regulations student loans are not exempt thus student loans are required to disclose the terms of borrowing and to provide statements.

 

These amendments will mean that student loan borrowers no longer have any protection to not being told how their loan works, what the interest rate is and will not be provided statements.

  

Students deserve the same rights to information that other borrowers are provided.   Students are not second class citizens.

 

This action by the government will mean that students are not provided with information on interst rates, how their loans work or statements.   If students were provided information on interest rates and how their loans work and statments there will be less defaults.   Students need information to make informed financial decisions.

  

The Government plans to publish these amendments in the Canada Gazette on May 23.    We need to act fast to pressure the Minister of Finance to remove the amendments (c) and (d) to section 2 of the Cost of Borrowing Regulations so that students have the same protection as other consumers.

 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 31/May/2009 at 4:43am

Hi,

If anyone wants to object to the proposed new rules that exempt student loans from the cost of borrowing rules (requirement to disclose interest rate, terms of interest free periods,  requirement to provide statements, requirement to be provide accurate information in advertisements etc) now is the time to do it.

 

There is a 21 day period (from May 23) in which we can object. We should have the same rights as other consumers. Student loans should be transparent.

 

Pleases see the process below:

-----------------------------------------------------------------

PROPOSED REGULATORY TEXT PROJET DE RÉGLEMENTATION

Notice is hereby given that the Governor in Council, pursuant

to sections 567 to 572a, 575b and 978c of the Bank Actd, proposes

to make the annexed Regulations Amending the Cost of Borrowing

(Authorized Foreign Banks) Regulations.

Interested persons may make representations concerning the

proposed Regulations within 21 days after the date of publication

of this notice. All such representations must cite the Canada Gazette,

Part I, and the date of publication of this notice, and be addressed

to Jane Pearse, Director, Financial Institutions Division,

Department of Finance, L’Esplanade Laurier, 15th Floor, East Tower,

140 O’Connor Street, Ottawa, Ontario K1A 0G5 (tel.: 613-

992-1631; fax: 613-943-1334; e-mail: finlegis@fin.gc.ca).

PAUL SHUTTLE

Assistant Clerk of the Privy Council

-------------------------

see page 42-46 of the Canada Gazette from May 23

http://www.gazette.gc.ca/rp-pr/p1/2009/2009-05-23/pdf/g1-14321.pdf

 

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