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 LockedNot typical situation. Need opinion.

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    Posted: 19/October/2013 at 7:33am
In 1997-99 I took out OSAP loans in Ontarion, both federal and provincial, total amount around 28K, via CIBC. Upon graduation I moved abroad, wasn't living in Canada since then, but was repaying the loans for about a year. Then quit paying because of various problems. In 2004 I called the CIBC bank to inquire about the loans status, they said it was with collection agency, gave me the phone#. I called, said I wanted to start repaying, we agreed on the amounts for them to automatically bill my canadian bank acct. every month. I was sending funds to the acct. they billed, that lasted for about 4 months. Then the agency started overbilling, I got angry, and didn't repay since then. I'm still living abroad, occasionally visiting Canada, but with no nearest plans to ever live in the country. Never did anything in regards to the loans for 9 yrs.
My questions:
1) What could be the status of my loans at this point?
2) If I decide to repay the loans in lump sum, would the 27K amount have changed drastically? Would I find that some huge interest was accumulating there for over 10 yrs. and still does?
3) If I do nothing about those loans and ever go back to live in Canada, will those past unpaid loans cause me any serious problems?

I appreciate your opinion and thank you for your time.

Best Regards
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 20/October/2013 at 8:35am
Actually, your situation is more typical than you may think..... 

1) If you come back to Canada your provincial loan would likely be paid by taking any tax refunds by the CRA.  The federal portion could be statute barred by now.

Have a loot at the info in this forum...
http://canadastudentdebt.ca/forum_topics.asp?FID=90&title=collection-of-old-stats-barred-loans

2)  A lump sum payment could be negotiated for the CIBC portion, but be careful not to acknowledge the loan otherwise the stats barred clock would be reset.  The collection agency will smell money and try to get as much as possible from you to enhance their commission.  If you agree to a settlement, make sure it is in writing before you send them any money.    Perhaps its better to confirm the loans are statute barred and let sleeping dogs lie. You made an effort to pay, they messed it up as usual. The system is broken.

3) Revenue Canada would try to collect the Ontario portion if you were to return to Canada and file tax returns.  Always a good idea to leave your options open for a return to Canada.  The Ontario loan might cause some problems since it would be collected by Canada Revenue Agency,  but the federal is likely stats barred.  Just don't ever bank at CIBC because they could take the money out of your account as a right of offset.  If you have any money at CIBC move it out of that bank.

Hope the answers help. Johnny at CFWGroup would be in a better position to advise you.

It would be a bad idea to contact the collection agency at this time without proper knowledge of your rights, and you want to avoid any acknowledgement of the loan.
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