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 Collections 8 years after Bankruptcy?

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    Posted: 23/February/2017 at 7:22am
I've just been dealt a massive blow and I really need some advice...
 
In 2008 I filed for bankruptcy.  At the time, I was told by my bankruptcy trustee that my student loans would be included in the bankruptcy.
 
Just prior to my discharge in 2009, I moved overseas where I lived and worked for 5.5 years.  What I didn't know - and was not informed about - was that my student loans were not, in fact, included in my bankruptcy. 
 
Unaware, I returned to Canada at the end of 2013 and after filing my first tax return, was contacted by CRA and informed that my loan (issued in 2003) had been transferred to them for collections and had been accumulating interest since my bankruptcy discharge in 2009. 
 
Since then, I have been very dedicated in paying down this loan, which currently sits at $7,800 remaining with interest up to date.  This past month I qualified to have my loan rehabilitated and transferred back to Canada Loans Program.  This is when I was dealt with yet another shocking blow...
 
My other student loan, which was administered through CIBC back in 1999, is still active and has also been accumulating interest.  This is the first I've been informed of this - nearly 8 years after being discharged from my bankruptcy!!!  This loan was $5,000 is now nearly $8,000 due to accumulated interest.  I'm horrified and very worried what this means for me.
 
I should also note that I recently became a caregiver to my disabled Mum who suffered a stroke.  We recently purchased a home using her savings as a deposit - in exchange, I carry the full cost of the mortgage and provide in-home care for her.  I'm single and we are living on a combined gross household income of under $60,000 between her disability pension and my salary.  I am only just able to budget for my monthly payments for the first loan; there is no way I can take on this other loan.
 
Can someone please tell me what my options are?  Why wasn't I contacted years ago in the same way that I was contacted by CRA regarding my other loan?  Why didn't it show up in my credit history when I recently applied for and secured car financing and a mortgage?  Is there a statute of limitations on collection in this case or is there something I can do to have this loan discharged?
 
Any advice or recommendations would be GREATLY appreciated.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 23/February/2017 at 9:21am
These loans should have been included if you had been out of school for 7 years at the time you filed.  The banks have been known to try to ignore the bankruptcy and try to collect anyways.... The best thing to do is contact your bankruptcy trustee for advice.


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