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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Lily73 View Drop Down
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    Posted: 20/August/2017 at 12:58pm
Hi. I had a federal student loan that was last acknowledged in 2010 or early 2011. It was held by Royal Bank but then, out of the blue, I got a call from a collections agency demanding payment. Shortly afterwards I got my cancelled cheque (I studied in the UK and was making payments from the UK) returned in the post from Royal Bank with no explanation other than it wasn't a valid payment. I had been paying on time for a year or more at this point, by cheque. Nothing had changed as far as I was aware. So, I asked the very aggressive woman who phoned me if she could please send me something in writing just confirming a) who they were and b) what loan they had 'taken over' and the amount. I took advice in the UK and was told that I shouldn't send money to anyone who had simply rung me on the phone without a written notice, so was confident I had done the right thing. Nothing arrived in the post. I believe I got one further phone call when I again said I would be happy to arrange payment (as I had been paying Royal Bank regularly and in good faith) once I had a letter from them. I was told it was in the post. It never arrived. Yesterday I went into a Royal Bank in Canada because my Mum is unwell and we were making Power of Attorney arrangements. They took my current contact phone number and email, but they also told me that they have an 'old' record for me and showed me the student loan amounts as outstanding on their computer. I'm now wondering if my Mum dies if when I try to settle her savings etc accounts with Royal Bank if they can withhold the amount outstanding for my student loans? Shouldn't these loans be statuted barred by now? If they are AND they were sent to a collections agency, why are they showing up when my name is entered into the Royal Bank system? Any and all help greatly appreciated.
Thanks, L.
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SolveStudentDebt View Drop Down
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Post Options Post Options   Thanks (1) Thanks(1)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 21/August/2017 at 7:17am
If you have an account with RBC, and there is money in it then they can seize it under set-off rules IF you owe RBC money. 

If you owe RBC money, and have accounts at a different institution then they cannot be set-off due to student loan default and recovery process. Legal action would have to be taken and those accounts become known to the plaintiff. 

Statute of limitations may have come - or may not have. No way to know unless you get in there and discover it. The onus is on the person to figure this out, which is what the banks and their legal reps say. 






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

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Lily73 Quote  Post ReplyReply Direct Link To This Post Posted: 22/August/2017 at 6:39am
Thanks for this, Johnny. It's really helpful.

Just to clarify: I haven't had any Canadian bank accounts for years. I did have a RB account, but it was closed at least 10 years ago.

My concern was that if my Mum were to die and her savings are all with RB, that instead of paying them out to me (which I may need for funeral arrangements etc) they would 'keep' the balance owed on the student loans rather than paying it out to me as the beneficiary to these savings accounts. Do you know if this is something they can do?

I will follow up on (find threads in this forum) finding out if my loan is statutes barred: thanks for clarifying this.

Thanks, L.
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Post Options Post Options   Thanks (1) Thanks(1)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 22/August/2017 at 8:23am
What you should do is have an attorney handle any matter of an estate and it's transaction. If money lands into a bank account at that bank, then it could be problematic.

If you want to find out what the disposition is of your loans, and if there are limitation issues, that will only cost 2 or 3 hundred bucks. Then, you can have more control if there is limitation issues. 

Set-off rules for banks are kind of funky in comparison to the government's. 
 
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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