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 LockedQuestion about defaulted loan + Disability

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Darkmatter View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Darkmatter Quote  Post ReplyReply Direct Link To This Post Topic: Question about defaulted loan + Disability
    Posted: 28/November/2012 at 7:05am
Hi, I live in Ontario and have a student loan that I used for college. After I finished school a bunch of crap happened and now I'm on Ontario Long Term Disability. Luckly I have lots of medical documentation which allowed me to get on ODSP on the first attempt. I didn't even need to appeal, which I am told is somewhat rare.
 
Since I am on LTD now, should I be trying to contact whoever has my loan now so that I can start a process to have my loan forgiven? I would prefer to go that route then go through a bankruptsy, which I could probably do soon since I finished school in 2007 and have never made a single loan payment.
 
On top of the questions above, I do have 1 more very important question:
Can they take part of my monthly ODSP cheque and/or take money that's in my bank account?
 
They haven't contacted me in ages so the last thing I would want to do is contact them to ask about loan forgiveness only to have them start garnishing my ODSP cheque. :(
 
Thank-you.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 29/November/2012 at 5:13am
ODSP cannot be attached for garnishing.
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 29/November/2012 at 5:38am
Johnny is right, but don't assume they won't take it if it is being deposited into the same account as you had your student loans deposited into.  If it is the same account, open up a new account or have it sent to you in cheque format.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 29/November/2012 at 9:31am
Just to clarify, open up a new account AT A DIFFERENT BANK!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Darkmatter Quote  Post ReplyReply Direct Link To This Post Posted: 04/December/2012 at 5:06am
Thanks for the replies.
 
I just want to make sure I got this right.
 
They won't garnish an ODSP payment, but they will take the ODSP money once it's in my bank account?  Is that accurate or can they only remove money from my account that came from somewhere other then ODSP? I ask because I don't have any other income then ODSP so there isn't any "extra" money that they could target. All the money I have is from ODSP.
 
I've had that account since I was a kid so losing it is... annoying. Does it have to be a new account at a different bank?
 
One other problem is that I have a special RRSP set up at RBC that is a fairly new program designed specifically for people who are on ODSP. Since this is a special RRSP account (government adds money to the RRSP whenever I put money into it.) I don't know if I could move it.
 
One last thing.
 
Is there a specific number I need to call to try to get my OSAP debt forgiven? Also is there a web page that outlines the process you have to go through to have the debt forgiven?
 
 
Thank-you in advance for all the help. The collection companies, and even the government seem to go out of there way to make finding out this kind of information very hard.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 04/December/2012 at 9:48am
If you owe RBC, Scotiabank, or CIBC for a student loan, and it is in default, and you have an account with the bank you owe, and it has money in it, then the bank can seize money fromt hat account and then apply it to the debt you owe. The set-ff does not take into consideration where the money came from. It just takes it.
 
If this scenario applies to you then open another account with a different bank and protect your financial security.
 
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote Darkmatter Quote  Post ReplyReply Direct Link To This Post Posted: 04/December/2012 at 1:15pm
Yikes that is scary. I'll see if theres a Canada Trust near me since its a trust, not a bank. (not that I'm up on the difference)
Not sure what I can do with my Disability RRSP but since the government contributes to that, they probably can't touch it.
 
I've been using that account all this time, over 5 years, and they've never tried to take any money... I don't know why they haven't, but I don't plan on giving them time to catch up.
 
Thanks for your help. If you know what number/where to start to try to get my loan forgiven please let me know. I need to talk to them, after my account is changed. :)
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 07/December/2012 at 9:40am
Having a student loan set aside in this manner can't be done by talking to them. You have to provide a written demonstration of hardship that gives them a reason to do so. I can show you how to go about preparing it, and what to provide if you want. That is inexpensive. Just cover an hour or two of my time. That's all.
 
If you want to call them then you would contact the student loan service center for that bank.  The main toll free will be able to navigate you to them.
 
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote Darkmatter Quote  Post ReplyReply Direct Link To This Post Posted: 16/February/2013 at 2:59am
I've moved my chequing account to a different bank. This new account is where my ODSP money is now deposited.
 
I just have 1 final question remaining.
Can the collectors touch my RDSP that I have with Royal Bank? I was using Royal Bank when I got my OSAP but I only opened an RDSP a year ago.
 
Thanks for all your help!
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