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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nccmbc View Drop Down
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    Posted: 18/February/2004 at 2:07pm

Hi all.  To very briefly explain my position...

I briefly went to school in Ontario in the mid-90's, had the full OSAP loan amount, left school and most of the money was returned.  Only a few thousand remained.  Being young and stupid, I never did anything about it.  I never received any information about repaying the money.  2 years later, a small BC collection agency with very poor stationary attempted to collect the debt.  I paid them pocket change and wrote a letter stating my situation and how much I could pay monthly; there was never a response.

Now, nearly 6 years to date of last contact with the collection agency, a second collection agency has begun making inquiries.  I have never had my taxes or GST removed, my credit has never been affected in any form and the loan does not exist in my credit report.  I moved to a different province and have to returned to school on my own dime.

Question:  What the hell happened to the loan and what is this company trying to collect on today?  I've been reading posts here and information other sites, is this loan even a student loan anymore?  Does it qualify for a statute of limitations? And how do I find out more info without you know what?  Has the collection agency "bought" my Provincial loan, and what right do they have trying to collect after nearly 6 years.  Does the Ontario 2 year statute of limitations affect me or does my Provincial regulations take president?

Anyone know where I could more info about this situation?  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: 19/February/2004 at 2:46pm

 

 nccmbc,

 This sounds like a "purchase receivable" from a collection agency. OSAP "sells" their aged accounts to agencies from time to time. They probably paid 5-10 cents on the dollar for it.

 If you haven't made any payment, or written acknowledgment towards the loan from the date of default, it would be stats barred. The only way to find out is to call OSAP and ask them "VERBALLY
" what the date of default was. If it is stats barred, the agency is stuck with the loan as they bought it. They paid it for you in a sense.

 This type of loan would not show on your credit history because it is OSAP (CSL and provincial direct/guaranteed loans) do not report to bureaus.

 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 nccmbc Quote  Post ReplyReply Direct Link To This Post Posted: 19/February/2004 at 2:56pm

Thank you so MUCH Johnny!!

I won't count myself off the hook just yet, but that is very good information I need to look into.

When you say the day of default, does this include the last day I dealt with a collection agency?  Does leaving messages on my answering machine by the current agency void stats barred?

Getting closer to an answer, THANK YOU!!   

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Post Options Post Options   Thanks (0) Thanks(0)   Quote nccmbc Quote  Post ReplyReply Direct Link To This Post Posted: 19/February/2004 at 2:59pm

Oh!!

If for some reason it is not stats barred, what about the co-signer of the original OSAP loan?  This may sound cruel and sadistic, but I hold the co-signers 50% responsible for my circumstance, why have they never been called to repay the debt?  How do I point the agency towards the co-signer for at least half?

Thanks again!

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Post Options Post Options   Thanks (0) Thanks(0)   Quote nccmbc Quote  Post ReplyReply Direct Link To This Post Posted: 19/February/2004 at 3:11pm

OOpss!!  What if I paid a small portion (<$200) to the first collection agency 2 years after leaving school?

I think my head is going explode!! ]

Nah!!  I don't own anything, I don't make anything, and they can't take my dog!!

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Post Options Post Options   Thanks (0) Thanks(0)   Quote nccmbc Quote  Post ReplyReply Direct Link To This Post Posted: 19/February/2004 at 3:22pm

I just found this on the OSAP website, will contacting the bank I dealt with jeopardize my status or will it be okay?  If I find out that I'm not stats barred, should I contact the bank just to get information on the loan?  I have lost ALL documentation, I don't have a single piece of paper, it was nearly 9 years ago after all.

If you have one of the following:
  • Canada Student Loan negotiated before August 1, 2000
  • Part-Time Canada Student Loan negotiated before August 1, 2000
  • Ontario Student Loan negotiated before August 1, 2001
You must contact the lender holding your loan(s):
  • Scotiabank: 1-888-284-3044
  • CIBC: 1-800-563-CIBC (2422)
  • Royal Bank of Canada: 1-800-363-3822
  • Other financial institution (local branch holding your loan)
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 19/February/2004 at 4:20pm

 

 Just contact ASAp, but not in writing. Calling them does noty constitute acknowledgment because it cannot be a proven activity. If they ask you to forward it in writing, this means they "could" be attempting to ure you into the acknowledging the debt "after the fact". That is risky. As long as you are talking with them, no harm done.

 Truly, if you haven't made a payment or supplied a written acknowledgment from the date of your last payment... It could very well be stats barred. My guess... it is.  CSL works much differently in this case (for those who may get confused by this post).

 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 russ Quote  Post ReplyReply Direct Link To This Post Posted: 25/March/2004 at 7:16am
This sounds alot like my situation, I posted it in the
dealing with C. Agencies though. In brief, OSAP
wanted me to repay my grant from 90-91 they sent
an audit letter to my parents in june 94 and sent it to
collections in sept. 94. Last week I got the call to
repay, even though in sept 94 I cleared all my
student loans off that were in collections.

I no longer reside in Ont. so I don't know if this will
even effect me anymore. If the C. Agency bought my
"debt" then I guess I should send them some
flowers.

Do they have a leg to stand on for trying to collect this
money? Should I be more concerned or just ignor
them? Any advice would be much welcomed.
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