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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TaraA View Drop Down
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    Posted: 07/April/2016 at 6:46am
Hi there,

I have a couple of questions I was hoping someone may be able to answer for me....
Here is my story (from what I can recall)

I started school in 1998 and graduated in the summer of 2002, so I assume that I defaulted in 2003. I have never made a payment, never acknowledged the loans at any point. CRA garnished my tax return in 2004 (I think). Following that year I stop filing my taxes. I received a number of letters and phone calls regarding my loans in the following years, they all went unanswered. Eventually the phone calls and letters stopped coming. In 2008, I attempted to get a car loan and had great difficulty as my student loans left a bad mark on my credit report. In 2010 I filed all my taxes from the years I missed ( 5 years worth), once again the CRA garnished all the returns. When i did that i again began getting a number of phone calls and letters about my student loans. At this point I attempted to figure out how much was left on my loans (as a significant amount was put on the loans from all my tax returns), however; I got very lost in the process. At no point did i acknowledge the debts in writing, just over phone calls trying to find out how much I owed. In 2011, CRA again garnished my tax return. I continued to hear from different agencies attempt to collect on the loans until about 2013 or 2014, however; I ignored them all. I have not heard from anyone in over a year, maybe closer to two years.  I did not completed my taxes since 2011 and just recently submitted my return for 2014 and 2015. I am receiving a rather large return, however, I suspect that the CRA will again garnish these returns. 

I guess my questions are

1) At this point would my loans be considered stats barred?
2) Would my tax returns being garnished be considered acknowledgement or payment in terms of deciding whether or not the loans could go stats barred?
3) Is there any chance that the loans would be written off at this point?
4) If not written off, how in the world would I be able to find out who's collecting what portion of the loans and what the balance is?
5) And does the CRA garnish tax refunds for all portions of the loan or only some of it?

Thanks in advance
Tara
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 07/April/2016 at 9:28am
1) At this point would my loans be considered stats barred?

Cannot be determined successfully without a thorough analysis of it - inside and out. This is something you need to do, or hire someone to do. 

 
2) Would my tax returns being garnished be considered acknowledgement or payment in terms of deciding whether or not the loans could go stats barred?

To the unaware collection agents and provincial governments who's system is corrupt, yes. For example, The BC government (through their private recovery agent, Hewlett Packard, who owns BC Revenue Services, takes the position that involuntary activity as such constitutes acknowledgment. Each case has to be fought and carried through the process. 

3) Is there any chance that the loans would be written off at this point?

If they are still attempting or open for recovery at a government level then they are not written off.  The onus is on a person to prove that a debt "should" and "must" be written off as per the limitation laws. 

4) If not written off, how in the world would I be able to find out who's collecting what portion of the loans and what the balance is?

Call the governments you would owe and find out, and be awfully careful what you say and how you say whatever it is that you are to say. 

5) And does the CRA garnish tax refunds for all portions of the loan or only some of it?

The provincial governments are entitled to seized income tax rebates if there is a provincial direct or guaranteed student loan outstanding and in default. It is a federal and provincial recovery source. 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Points: 1798 		Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 07/April/2016 at 9:28am
Hi,
Before we go any further, can you explain why you defaulted and why no payments since then?  Have you had income to make payments or had extenuating circumstances that have not allowed you to make payments?

Thanks
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Mark OMeara
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When it came time to begin repaying my loans, I was going through a difficult divorce and found myself reading two children on my own. I did have employement, however; it was just enough to allow me to provide the necessities for my children. Once I was in a better place (2011) I attempted to figure out what I owed and to who. In doing this I became extremely confused and frustrated as in trying to figure this out and ended up just giving up after numerous phone calls to government and collections. It seemed like there where ten different people asking for diffident amounts and no on could explain anything to me and just told me to call someone different. Felt like I was going around in a vicious circle. No the best choice I know, but I ended up giving up out of frustration.
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OP,  you're loans are in that awkward period when the limitation rules were updated.  Very very hard to say whether or not they're stats barred.  You will need an expert to figure this out.

My bet, however, would be this:

1) Federal portion of debt - stats barred.
2) Provincial portion - maybe/maybe not, likely NOT.

When you look at your online account with CRA, or look at your tax return, who EXACTLY is seizing your tax refund?  Depending on your answer, I can give a better guess what the government has chosen to write off as statute barred.  However, it would be a guess, and not something that your should rely on without a professional opinion.
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TaraA.
Thanks for explaining your situation. Like many people you have been trying to deal with this but are frustrated by a broken system.
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If the hardship you are experiencing is enough to satisfy the government for a lien removal then they will do so. It is a VERY detailed process and lots of demonstrative work has to be done. First though, you have to break through their combative ways. 

 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Points: 4 		Post Options Post Options   Thanks (0) Thanks(0)   Quote TaraA Quote  Post ReplyReply Direct Link To This Post Posted: 11/April/2016 at 6:27am
So I contacted the CRA collections today and they told me that there is no longer a lien on my income tax but that could change at anytime as there is still a remaining balance. He was unable to tell me how much the balance was or who the balance was with due to the age of the account. So this brings about further questions.....lol
1) The CRA has assessed this years tax return and indicated that the refund will be mailed out in the next day or two, will I actually receive this refund?
2) If so, is this normal for the CRA... to have a lien on income tax and then remove it before the balance is paid?
3) If this is the case, should i just let sleeping dogs lay as not to disturb anything?
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First of all, CRA collections cannot tell you if there is a lien anchored in by the Ontario government, if you happen to owe OSAP.  They wouldn't be able to see that. However if you contact CRA tax office then they can tell you if there is a lien, or the Ontario Ministry will tell you if you call them to inquire. 

The CRA non-tax collection office is just a "call center" employed by people who, half the time, don;t even know what they are saying to people. They have a script and recite what it requires them to say when confronted with questions from borrowers. two of the most frequently asked questions they receive are: 1) Are you going to take my income tax return this year?, and; 2) Can I have my income tax return back because it is needed. The third is "Are you guys suing me?". 

If there is a limitation issue in regard ot the federal portion of your student loan then they are not going to give you what you want.  The onus is on the borrower to prove that it is, in fact statute barred. Until that happens they may do whatever they want in order to illicit or force an acknowledgment out of you that will reset the limitation clock. 

Limitation law is very clear, in that is says (layman's terms) "You may not be forced to repay money you the government of Canada after a certain period of time. However, we are not required to pay you money owed to you, because you owe us money" 

So, the burden of proof and discovery rests on the borrower, and the government (as with all loan providers) will throw obstacles at you in order to make it more difficult for you. 

If you have an Ontario student loan in default, and the provincial limitation law that cites "no limitations" applies to you, then the lien stays on until the debt is paid, or you give them a reason to remove it, such as a case of hardship with extenuating circumstances that warrants the return of this money to you. 

So, if you have an Ontario loan outstanding, you need to know what limitation act applies to it - and if there is a lien. To find out about liens, Contact the federal tax office of CRA. Be careful what you say though, and how you say it.  To find out about limitations, find someone who specializes in that area. The CFW Group inc is one outlet for you. Or you can look for a lawyer in your area who specializes in limitation law in Ontario. Lawyers are expensive. We are not. 

 


 
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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