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 credit!

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liQuid03x View Drop Down
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    Posted: 10/January/2013 at 4:39pm
Hi guys,

I wasn't really sure where to post this. I've read several threads regarding how a student loan default appears on our credit reports, but here's my question. How does it effect the credit score / future lending opportunities? 
Same story as always - got into hard times, couldn't pay it, etc. I picked and chose which debts to pay and which not to pay at the time. Fortunately, my situation is now 1000 times better. The only two credit accounts that fell behind was my Visa card, which was an R6 and is now reporting as an R1 as per my deal with them (yay!), and my student loan which sadly, defaulted. They had declined my request for interest only / deferred payments back in 2011. Apparently I made too much money, without them considering my unique situation. Regardless, I am here now.

My loan is showing as "paid as agreed and up to date" and "transferred or sold". The last activity on it was in June 2012 as 120 days past due.

My confusion is this... no one has contacted me once trying to collect this. Last year, because I was behind on the payments, they withheld my income tax return - fine. But that's it. Nothing else. 
Second - how does this actually affect me?? It's reporting as I1 - will this hurt my application for credit? I'm looking at approaching Scotiabank, my bank, for a line of credit to cover other debts and basically consolidate everything with them. But the student loan is bothering me. I don't know what to do / say.

My current credit situation:
Scotiabank Dealer Finance Loan: Balance 19,000 / Opening balance: 33,000 / NO late payments. Ever.
Visa Desjardins: Balance 3000 / 4000 limit - was 120 days, R6 - but has been rehabilitated to R1 and late payments removed.
Line of Credit with Desjardins: balance: 3900 / limit: 5000 - 2 30 day late payments in 2010 - tried to dispute with them, hate them for it (reason why I switched to Scotiabank then) and they won't remove them.

Would it even be worth my time to go to Scotiabank and request a balance transfer to their visa and line of credit? Bah idk what to do! lol




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liQuid03x View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote liQuid03x Quote  Post ReplyReply Direct Link To This Post Posted: 12/January/2013 at 10:29am
Anyone? lol.. :)
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philbain View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote philbain Quote  Post ReplyReply Direct Link To This Post Posted: 12/January/2013 at 11:18am
The guys at the Canadian Money Advisor board might be faster to respond. There is a guy nicknamed Footloose that frequents Canada Student Debt and Canadian Money Advisor that usually posts some thorough and detailed replies. Johnny on this board is also extremely smart, but given the current student loan debt situation he may be overloaded.

http://www.canadian-money-advisor.ca/
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liQuid03x View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote liQuid03x Quote  Post ReplyReply Direct Link To This Post Posted: 12/January/2013 at 6:17pm
Thank you. I posted there. Hopefully someone can give me some good advice :)
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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: 13/January/2013 at 6:46am
If you have a federal loan that reading "transfered, with a zero balance" then that is an indicator that it is in default. It means that the federal student loan has been transferred to Canada Revenue Agency for collection. However, it does not cite that on your actual credit report, asd you will notice. It does show the delinquency period of 120 days and it is visible for any creditors to access and view, of course.
The good news is that the script rating is not derrogatory (I9), which means bad debt write-off (DWO), skip/unable to locate, referred to collections. Creditors don't want to see any of these remarks.
 
If you are approaching Scotiabank for a scotialine or similar product they will check your background. They were a student loan supplier during the first generation program (risk-shared), and they do know what things mean and how to interpret, of course.
 
It is 6 and 1/2 dozen of the other here really. On the plus side you have established a decent relationship with Scotiabank. That relationship may carry you through without incident. 
 
Moral 101: Apply and don't lie. If you get caught in deceptive act then the relationship you have worked hard to establish with them is toast.  They may not question you at all.
 
Advice: work with the program to pay them and develop a decent relationship with the Feds. Then you have a GOOD repsonse in the event someone that youa re depending on for credit privileges asks you about it in the future!
 
 
 
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 liQuid03x Quote  Post ReplyReply Direct Link To This Post Posted: 13/January/2013 at 11:45am
Thank you Johnny. I will approach them in a few months. I'm going to pull a credit report in March, see what the actual score is and bring my situation to Scotia. My score was 550 with the only derogatory remark being my severely delinquent visa, but as I mentioned earlier, that should go away and really help the score. I definitely won't lie to them, though. The debt is mine, and I accept responsibility to pay it, I just want my other credit with them lol.

Thank you for the advice!
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