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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ForceMatrix View Drop Down
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    Posted: 27/April/2017 at 4:25pm
Hello,
 
I have an Canadian Student loan that when I was done my studies was done by 1992. When I graduated I was unable to pay the monthly payments when the loan was due to be paid. I approached the bank that I was willing to pay the interest but unable to pay more at the time.
 
They refused and my student loan went into default. Over the course of a few years I was contacted by both the Government of BC and of course at that time a collection agency for the Canadian portion of the student loan.
 
At that time I was still unable to pay much back the BC Government worked with me and eventually I paid if off but took some time.
 
Were as the Collection agency hounded my like no tomorrow and would not work with me. I knew my rights and kept putting them back in their place. Over time I held a resentment regarding this loan so now only pay a enough to cover the interest and a bit above to slowly pay down the debt.
 
I have recently contacted by CRA collection and I told them I will pay them but only a specific amount and not the amount they want. The women from the CRA seemed to be okay with it and did not think it would go further.
 
They did send a financial form for me to fill out which for over 20+ years have never filled out when requested and now I gotten a letter from them that states "The CRA has attempted on several occasions to recover your debt of X amount to Employment and Social Development without success. Therefore the CRA will be referring your file to the Department of Justice of Canada with instructions to initiate legal proceedings against you.
 
First I did contact them when they sent the first letter and informed them that I was not willing to pay them the monthly payment they requested and told them I willing to pay the interest and about $40 to $60 extra depending on what spare money I have. The individual I talk to seem to be okay with it and also gave me other options I can pursue.
 
So what I need to know is if I am paying can they forward my loan to DJC?
 
Thanks 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 28/April/2017 at 4:37pm
Yes, they can. If there is a cause of action and reason to do so. 

Example: The government is taking action more so now against people with older loans. If someone undermines their own case for a limitation issue and acknowledges it thus causing the debt to become active once again. so, if your loan was actually barred, and you returned a completed financial information form, that would cause it. 

Or, if they feel you can pay more than you are offering, and it is not the required amount you are paying, then this is cause of action too in a lot of cases. 

The collectors internal to CRA Non-Tax Collections are just there to send letters, make calls from time to time, and refer files to CRA Legal Services, and hook people into rehabilitation to secure the best interest of the crown and not allow people to seek reduction opportunities and benefits in the cases that would be conditioned for it. 


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 ForceMatrix Quote  Post ReplyReply Direct Link To This Post Posted: 28/April/2017 at 5:55pm

Thanks for your feedback. I always thought as long as you are covering the interest and some of the principal they would be unable to proceed with action especially since this loan was actually a bank loan guaranteed by the government.

Also Unfortunately had I known about status barred I probably would not have paid a dime when I had financial issues and was unable to pay. But at the time I felt since I did borrow the money I should pay it back eventually.
 
During that time I was hounded and the illegal crap that occurred by the collection agency along with trying to negotiate a reduction on the loan which I was basically told to bad so sad turned me off wanting to pay it back in a timely matter.
 
I have been slowly paying down the debt and as stated before have refused to fill out any financial forms for over 20+ years and will do so even now.
 
As stated again above I did contact them and informed them that my intention was to continue to pay a minimum of $200 to cover the interest and some of the principle.
 
Anyways I know what I have to do next with some of the information you have given me. Oh one more question regarding Status Barred if they collect your income tax due to the default loan would that then automatically remove that Status Barred. Just curious for my own information.
 
Thanks again 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 30/April/2017 at 9:17am
In the province of BC and the BC government's position, they consider the taking of income tax money an acknowledgment now when it is not disputed  with a reasonable time of it's confiscation. Federal limitations, not so.  The BC student loan system is perhaps the most complex of all. 

In your case if it is the government of Canada you owe then tax money seizures are not an admission of liability, so to speak. 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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