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New Info on RAP regarding 15 years.

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    Posted: 05/June/2009 at 10:03am
This just in.....
 
Dear Mr. O'Meara:

  

Thank you for your Internet correspondence of April 27, 2009, regarding the 15-year repayment period under the Repayment Assistance Plan (RAP).

  

As you are aware, RAP will take effect in fall 2009, and is designed for those facing difficulty in meeting their student loan payments.  RAP will apply to all borrowers in repayment, including those with risk-shared loans with banks, as well as those who have been repaying their loans for 15 or more years.  It is important to note that loans must be in good standing to qualify for RAP.

  

While RAP ensures that borrowers will not pay back their loans for more than 15 years, for those who are currently in this situation, there is a minimum amortization of six months.  If a borrower has been paying for 15 or more years and is in good standing, their remaining dept should be minimal, and this debt would be amortized over a further six months.  The Government would pay any shortfall between the required payment and the affordable payment made by the borrower.

  

I trust that this information is helpful.  Thank you once again for taking the time to write.

  

Sincerely.

 

 

Director General 

Canada Student Loans Program

Learning Branch

Administrator

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Mark O'Meara

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Post Options Post Options   Thanks (0) Thanks(0)   Quote old hippy Quote  Post ReplyReply Direct Link To This Post Posted: 06/June/2009 at 8:05am

When I was playing around with the RAP calculator - it seemed that 10 yrs. were shaved off my 15 years of repayment (assuming I qualified) for 60 mths. of interest relief I had received following graduation.  During that time of interest relief - I made no payments at all, and my principal of $65,000 remains the same.  Does this mean that the principal is "amortized" over the remaining time left in the RAP?  And that if I qualified for the RAP and used up 14 yrs. of repayment - then suddenly found a good-paying job and no longer qualified - that I would still be on the hook for $65,000?  Just wondering...Smile

 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote mr.o Quote  Post ReplyReply Direct Link To This Post Posted: 04/September/2009 at 5:54am
so if I don't get monthly statements anymore,after 20 some years,
does that mean I am free?????
Is anyone else getting correspondence?
 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote mr.o Quote  Post ReplyReply Direct Link To This Post Posted: 21/September/2009 at 1:51pm
Sure has been quiet on this forum.
You'd think everyone got a golden handshake or something!
Still no statements in the mail...anyone else....holding their breath maybe?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 23/September/2009 at 8:31am
Ouch
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 mr.o Quote  Post ReplyReply Direct Link To This Post Posted: 25/September/2009 at 4:57am
I am using all of my wisdom to determine how long I should consider a reasonable time for the government to remind me that I may still be on the hook,and whether month(s) should elapse. My alternative is a very easy bankruptcy. I equate bankruptcy with failure, and that does not describe me...and so has been the hesitation all these years.(20)
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 25/September/2009 at 10:52pm
Bankruptcy has its emotional costs. I've been there.  It takes about 7 years for your credit to clear although 2 years after the bankruptcy you may be able to get a secure credit card.  The biggest impact was that I could not book a hotel anywhere, so no travelling, even in a family emergency.  These are some of the not well publicized effects of bankrupty. 
 
 Keep in mind that you have done all you can.  Second of all, be easy on yourself because this is a flaw of the government's student loan policy.  It is absolutely insane that people who are in the mostl need of help with student loans are ineligible. This issue has been raised in senate hearings and academic papers.
 
Perhaps you can talk to Johnny at CFW Group and see what you can do, or wait for clarification on the 15 year rule for the new RAP program and if you do qualify, great, if you dont, then we raise a media stink.
 
Dont see this as failure, as it is the only outcome available to many people with overwhelming student debt and the cuts to grants.
 
Keep us up to date on your progress.
Administrator

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Mark O'Meara

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Post Options Post Options   Thanks (0) Thanks(0)   Quote mr.o Quote  Post ReplyReply Direct Link To This Post Posted: 26/October/2009 at 6:30am

Another month and still no statements about the loan in the mail....that makes august,september and october....three months! have you finally written me off?  It has only been twenty years?

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 27/October/2009 at 10:52am
Who are you actually approaching for a statement of account??
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 mr.o Quote  Post ReplyReply Direct Link To This Post Posted: 27/October/2009 at 12:22pm
I suppose I am on a fishing trip,trying to find out if anyone else has had similar circumstance. If I owe the government money,and apparently I do,since they sent a monthly statement for some length of time saying so, then I would think it would be prudent for them to continue to send them,lest I come to the conclusion they have finally given up. Surely ,I can't be the only one.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Buff Quote  Post ReplyReply Direct Link To This Post Posted: 28/October/2009 at 3:22pm
Call CRA and get the statements going again.
 
I had no statements from December 2008 to September 2009. I was out of the country and not able to check my mail (and had other stuff to think about), so it never occurred to me. When I called CRA in September to get the interest statement that they were supposed to send early in the year, I asked why it, as well as the last 8 monthly statements, hadn't been sent. The person said that I had been placed in the inactive file. She couldn't explain how that happened, since my address hadn't changed and I hadn't missed a monthly payment since early 2007. I received a single statement covering that period, so no details on when payments were made or what interest was added, just a lump sum for both categories.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote seekinganswers Quote  Post ReplyReply Direct Link To This Post Posted: 10/May/2010 at 7:59am
i was really excited to hear about the new repayment options; until i learned that it was nearly impossible for people with defaulted debts to meet eligibility standards.
:(
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