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 LockedAdvice; Reapplying for student loan after default

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gilmikeb View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote gilmikeb Quote  Post ReplyReply Direct Link To This Post Topic: Advice; Reapplying for student loan after default
    Posted: 04/February/2014 at 6:04am
Hi everyone,
 I was wondering if anyone could help me with this issue, or any one who has experienced a similar problem. I have defaulted on my student loan a couple of years ago. The integrated OSAP loan has been split into two: the Federal and the Provincial. I have made payments to the Federal portion through Human Resources for six months before I could finally be approved for Repayment Assistance Program. The Provincial portion was awful. I had to pay at least half of the whole balance ($3000 of approximate $6000), otherwise they were going to send my file over to the collections agency. I have borrowed from a relative to pay that off, and have now since then been making monthly payments. Despite all that, another problem arose with them: it was that at least the first half of my first year dealing with them, I was using my credit card to make monthly payments and as a result, there was a one year restriction from reapplying for OSAP again (should I choose to go back to schol) from the last month when I made the payment using credit cards (which was March 2013). I have never heard such policy before. Now, since then I've been making payments using a personal cheques, and I intend to pay off the remaining balance sometime this month or next month.

Now I'm planning to go back to school soon, preferably during the summer semester, or in the fall. Now, what are my chances of reapplying for another student loan with OSAP and be successfully approved?
I'm in good standing with both Federal and Provincial. I have two other issues though: I need a letter addressed to my school's Registrar's office explaining my predicament why there was a lack of academic progress (which had resulted into defaulting my loan in the first place), and also apparently there was a loan overpayment that I need to get rid of.
Now, from my understanding, the loan overpayment automatically goes back to OSAP, and since I've been making payments for both Federal and Provincial, the sum paid should cover more than enough of that loan overpayment. I'm very confused and frustrated right now, not to mention scared. If this loan overpayment stands in the way of being approved again, I would have to pay this out of my pocket, and my savings are barely even enough for me to last until I get a job (currently, unemployed, living at home).

So can anyone tell me, exactly the success rate of getting another loan again because I'm very determined to finish my degree (living in poverty is simply soul crushing), and how exactly do I deal with this loan overpayment (or should I even worry about this at all, since from my understanding, by virtue of my making monthly payments to both Federal and Provincial, I've already covered it).
Please help. Thanks for reading.

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angel44 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote angel44 Quote  Post ReplyReply Direct Link To This Post Posted: 22/April/2014 at 10:26pm
Sorry if this is too late, I am just coming across this page/forum now. For you to be approved for a new student loan the federal portion of your loan would need to  be rehabilitated. If you have been making payments regularly to CRA/HRSDC then this process should be relatively smooth. I do believe the provincial portion has to be repaid in full, but I am not 100% sure.
 
As for the loan overpayment. You are going to need to provide a receipt of that payment, basically proof that it's paid, before you receive any student loan funding. This will need to be presented to your financial aid office once you apply for your student loan.
 
If you have made the payments, I would suggest getting all receipts, or a full statement of all payments you have made as soon as possible so this is ready to go and to avoid future delays closer to the date when you will need to student loans/
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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: 24/April/2014 at 12:31pm
If there is a provincial loan in default and cannot be rehabilitated then the system will require that to be paid too.  Also, for those with first and second generation loans (bank risk/shared), the same applies. 

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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