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 LockedStudent loan writeoffs reach $540 million

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    Posted: 25/February/2013 at 6:11pm

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http://o.canada.com/2013/02/25/student-loan-writeoffs-reaches-540-million-with-another-44000-going-unpaid/#.USxCHDes_aw

 

OTTAWA — The federal government is writing off another $231 million in unpaid student loans this year from more than 44,000 cases, meaning taxpayers are on the hook for more than half a billion in uncollected student debt over the past few years.

Supplementary spending estimates tabled Monday in the House of Commons by Treasury Board president Tony Clement call for an additional $231.2 million in the current 2012-13 fiscal year ending in March to write off 44,048 debts related to Canada Student Loans.

“Amounts being written off are debts for which all reasonable efforts to collect the amounts owed have been exhausted,” explains the 145-page supplementary spending estimates.

The new cash for 2012-13 is on top of nearly $312 million on the books from the 2011-12 fiscal year to cover unpaid Canada Student Loans from 98,448 debts dating back more than a decade.
Together, taxpayers are on the hook for more than $540 million over the past couple of years to cover uncollected student loan debt.

The mounting student loan write-offs come as the federal government is preparing to cut more than $5 billion in spending over the next few years as part of a sweeping expenditure review in last year’s budget.

Human Resources and Skills Development Canada, which is responsible for the student loans program, couldn’t immediately provide more details on the uncollected loans.

However, the department has previously said that more than 98 per cent of the loans written off by the government are dropped because of the expiry of a six-year limitation period between when the borrower last acknowledged a loan and any legal activity by the Crown to recoup that debt.

Once this period has expired, the Crown no longer has the authority to collect the debt.

In an attempt to collect the debts before the government is legally barred from doing so, the Canada Revenue Agency will send monthly statements and collection letters, recoup income tax refunds and refer accounts to the Attorney General of Canada, which could potentially garnish wages or seize assets.

Approximately 87 per cent of all Canada Student Loans are repaid, the department has said.
All told, the federal government is seeking $1.5 billion in additional spending through the latest round of supplementary estimates to help pay for federal programs and services in the current fiscal year.

Nearly $250 million in extra funding will go to HRSDC in 2012-13 to cover off additional expenses from an increase in the rates and the anticipated number of beneficiaries receiving Old Age Security pension and the Guaranteed Income Supplement for low-income seniors.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 26/February/2013 at 8:43am
... and Justice Canada and CRA Legal Services are busier than they have ever been since 2009. Limitation assessments and analysis and safeguarding all kinds of people is now a daily thing over here.
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 mcjupto Quote  Post ReplyReply Direct Link To This Post Posted: 26/February/2013 at 4:35pm
Does CRA send you statements in the mail showing how much you own them on y our loans if its stats barred?  OR is that something they only do while in active recovery?  Or both?

Do monthly income assessments filled out and sent back count as acknowledgement?  If someone makes one payment at a bank, to CRA(payment on student loan, I just walked in and made a deposit into an account number they gave me once, a few years ago) , how do you know which loan that payment got applied too, and does it count as an acknowledgement? 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote mcjupto Quote  Post ReplyReply Direct Link To This Post Posted: 26/February/2013 at 4:51pm
Im looking at my statement of accounts from HRDC.   It has two loans on it.

CAN-ONT STUDENT LOAN CDON - $11623 (Im unsure about this loan)

DIRECT FINANCING STUDENT LOAN CSL4 - $6368  (this loan is obviously federal being a Canada Student Loan 4)

Is the CAN-ONT a federal and provincial integrated loan, which would mean it is bound by Ontario/provincial legislation and would be actionable/collectable indefinitely?  Or is it bound by federal legislation?
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