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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rsc_guy View Drop Down
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Joined: 08/January/2010
Location: Ontario
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Post Options Post Options   Thanks (0) Thanks(0)   Quote rsc_guy Quote  Post ReplyReply Direct Link To This Post Topic: 'Final Notice' from agency
    Posted: 08/January/2010 at 8:25am
My background in point form:
- took out $24,000 in student loan 11 years ago in Quebec
- moved to Ontario a year after graduation
- started making payments a few years later, but then stopped shortly after (lost job). This was just over 6 years ago. 
- heard nothing about this for years
- a few months ago I started getting calls from collection agency IQOR. The agent told me my new amount with interest is over $33 K. He said that I MUST pay at least $10 K lump sum + $500 per month. I told him 'that's not possible - I don't have money for a lump sum. Sorry - no dice..'. I also told him to please send me something in writing (though didn't offer my current address at that time) so that i could consider the matter.
- spoke with agent another 4 or 5 times and got a different 'deadline for recommending legal action' each time.
- collection agent contacted my parents and told them that I was going to have 'legal action taken' against me unless I - or they - paid the money (stressing my my mom - at was the agents intent). In fact my mom revealed to me that the agency had actually been contacting her / my dad prior to this recent round.

So then a couple of weeks ago the agent called again and went through the same routine. 
I then told him that contacting my parents multiple times and telling them that legal action would be taken against me was in violation of the law. He got angry at this and basically said that he was going to go ahead and recommend legal action against me to the Quebec Ministry of Education - unless I now paid all $33 K at once. I told him that was impossible and he basically cut off the call.

I then got my credit report from Equifax and it did not show my student loan. I suspect that the reason IQOR was recently chasing me was that the loan was about to be wiped from my record (which it seems to have been - is 6 years the limit?).

Today I got a notice from IQOR (the first mail i have actually received form them) stating that I have 5 days to pay $33 K or "we will be compelled to consider recommending to MIN.DES FINANCE/EDUCATION that they proceed with immediate litigation on the above account"

Questions:
- can the 'MIN.DES FINANCE/EDUCATION' (as IQOR referred to it) take legal action still (after no longer on my credit report)?
- if yes, what can they do? I have $15 K in total mutual funds (RRSP) and I work as a contractor so i have about $12 K put aside just to pay my taxes for this year. Can they take all of this?
- if answer to above questions are 'yes and yes', should I start making monthly payments even if they insist on $10 K upfront (or as is now the case - $33K) which i wont be able to pay? Do they have to settle with me if I am suggesting some sort of reasonable payment plan? 

I don't make a ton of money and I have a wife that doesn't work and a small child. If pushed i can maybe make $500 / month payment - but it will hurt. I also understand that for things like buying a house, the 6 year limit does not apply (they can check further back) and so i am not against dealing with the money owed - I just don't want to screw myself and be penalized by offering / starting payments (will the whole thin go back on my credit report if I do?).
 
What should I do?
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paulaffleck View Drop Down
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Joined: 26/September/2007
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Post Options Post Options   Thanks (0) Thanks(0)   Quote paulaffleck Quote  Post ReplyReply Direct Link To This Post Posted: 09/January/2010 at 1:19am
First, should you pay?  Yes, because you borrowed the money. Secondly, can the Ministry sue?  Maybe, depending whether the limitation period lapsed.  Ask Johnny whether you acknowledged the debt and re-started the limitation period clock.  

Collection agencies won't stop calling merely because the limitation period has lapsed.  

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