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debt forgiveness letter, round 2

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Category: Government Program Problems
Forum Name: Applying for Student Loan Disabilty Relief
Forum Description: help others going through this crazy process!
Printed Date: 23/May/2019 at 6:55pm
Software Version: Web Wiz Forums 11.08 -

Topic: debt forgiveness letter, round 2
Posted By: momof2
Subject: debt forgiveness letter, round 2
Date Posted: 22/November/2004 at 11:49am

ok guys and girls, here's the second draft.  as always, i value your suggestions and comments.  thanks in advance


my name and mailing addy

November 22, 2004

Canada Student Loans Program

Student Assistance Directorate

PO Box 2090, Station “0”

Ottawa, Ontario K9P 6C6


Dear Sir or Ma’am

Re: momof 2  and my SIN goes here

Canada Student Loan Account Number goes here

I am asking to be considered for relief from my Canada Student Loan debt for medical reasons. I am currently under long-term medical care for carpal tunnel syndrome, fibromyalgia, and chronic fatigue syndrome. I also suffer from depression and extremely high levels of stress, which are compounded by my current situation regarding my loans.

I am unable to pay the debt because of circumstances beyond my personal control. The education I worked so hard to obtain is essentially useless to me now as I am helpless to apply it in any manner. I am unable to work and I am suffering financial hardship and experiencing deteriorating health. I make my request on compassionate grounds for my debt to be forgiven.

My daily life has changed in every facet. Simple tasks that many people take for granted are difficult or impossible for me to perform, and any exertion requires days for me to recover. Imagine having no strength in your hands, being unable to open a bottle of juice without assistance.  Something as simple as getting out of bed can be extremely difficult for me as my body feels encased in concrete. Stairs cause me pain and anxiety. Grocery shopping is a chore that I cannot complete alone. The list is long, my symptoms are numerous and my life will never be the same.

I am requesting that you send the necessary documents to me to apply for the forgiveness of my debt. I ask for special consideration in having my application processed despite being in default on my loans as I have no hope of repayment of this debt. Debt reduction, loan forgiveness and disability benefits should be available to all in need and not discriminate against those who need it most - namely those in default or experiencing medical problems making it impossible to work. I also request that my loans be removed from active collections pending the outcome of my application as I am unable to physically or emotionally deal with any inquiries regarding repayment at this time without experiencing anxiety and stress followed by days of depression.

Thank you for your cooperation. Your efforts to expedite my request are greatly appreciated as I am already under considerable duress. If you have any questions please contact me at xxx-xxx-xxxx.


Yours truly,







professionals built the titanic but amateurs built the ark...

Posted By: Islander
Date Posted: 22/November/2004 at 5:37pm
Fabulous, Mom!

What? Me, worry?
Alfred E Newman

Posted By: momof2
Date Posted: 22/November/2004 at 7:11pm


no changes to suggest ?  you mean i actually did a decent job on the second draft ?  here's hoping that the letter gets me somewhere.  i'm thinking about sending it to all those people on the click here to tell your story on the home page...

professionals built the titanic but amateurs built the ark...

Posted By: kwelmm
Date Posted: 22/November/2004 at 8:47pm
Well-written and clear.  Hope it works for you !

Posted By: debtmonkey
Date Posted: 22/December/2004 at 4:25pm
I have thankfully had both my CSL and OSAP
forgiven. I would like a "translation" of the following,

"A review of your file has been completed and I am
pleased to inform you that the ministry will not be
pursuing collection of your provincial account. As a
result, the ministry will take the necessary steps to
remove your OSL from active collection."

What is meant by "active collection" ie does this
mean they can reactivate collection at some point if
they wish? Under what circumstances might they do
this? ie if my disability status ends would they

"Please be aware that should you wish to be
considered for additional provincial funding through
OSAP in the future, you must satisfy all clearance
and eligibility criteria in effect as at the time of your
new application"

What exactly does this mean? What, in particular, is
meant by clearance? IE would I have to pay back my
OSL debt which is no longer being pursued before I
could get any further loans?

Posted By: mtbi survivor
Date Posted: 26/January/2006 at 11:14am

Hello, I have read your letter momof2 and I thought it was great. I was wondering if anyone can tell me what they think of my letter that I will be sending to Canada Student Loans, and who I need to address it to. Here is my letter;

To Whom It May Concern,


My name is XXXXXX and I have a Canada Student Loan that is in collections with NCO Financial. The purpose of this letter is to establish that before the 6 month window was up, I suffered a disability that prevented me from making payments for a two year period.


In August 2003 I was in a serious car accident that left me with many permanent disabilities. My left elbow was shattered and had to be rebuilt and as a result has deficits in mobility. My right wrist was also shattered and carpal tunnel was found, then my wrist healed with serious deficits in mobility. My left hip was dislocated and continues to be of concern because of risk of vascular necrosis. I also suffered a mild traumatic brain injury that continues to be a hindrance in finding and maintaining gainful employment.


I am asking that my debt be recalled back to Canada Student Loans because it causes undue financial, emotional, and physical hardship with NCO Financial. As a result of my disabilities I am already under strain to find and maintain gainful employment, and my MTBI prevents me from finishing my arts degree. As a direct result of my car accident, I am suffering from financial strain, and with collection agencies harassing me I am certain that a mental break down is imminent. For 6 months I could not do anything for myself, including feeding and going to the washroom. For 1 year I could not work at all. Two years later I’m working at a job that is wage subsidy sponsored by THEO BC, who helps disabled people find work. I make $524.00 every two weeks. My rent is $600.00, groceries $100.00, car:gas/insurance $250.00, Hydro $50.00, Terasen Gas $50.00, Phone $10.00, Mastercard $40.00, NCO current payment on CSL $100.00. There is no room for error in my budget. The current payment to NCO is putting me over the line already. They intend to take me to court over this matter. They have already raised the payment, from $67.00 to $100.00. They have already taken my last two tax returns and GST cheques.


When I was in my car accident I broke both arms and as a direct result could not lift a telephone to my head for 4 months, when finally I did call Student Loans to tell them of the situation, the window had already passed. My call was not even answered, a voice mail message said “ We are currently experiencing higher than normal call volumes, please call back” . I called back a number of times, but I always got the same message. Eventually I forgot about calling ( This is because I have a brain injury and have problems remembering simple tasks). All I want to do is pay my student loan off with no hassles. I do not want to get another student loan, I merely wish to pay this one. If you could possibly find it in your hearts to recall my loan, I would be forever grateful. I have not once missed a payment to NCO, and I will not miss one with you. I just cannot mentally handle the stress NCO is putting me under. Please consider recalling my loan.


Thank You



What should I be sending in regards to doctor files, I have many many letters from physicians, neurologists, orthopedic surgeons and the like


Posted By: ireire
Date Posted: 26/April/2012 at 8:51am
hi guys please please help, im in dire straits i owe 45k and need to get it forgiven due to financial hardship..i am currently working now but its just a temp job, the bad thing is my husband makes quite a bit welding... can i still write a letter to get it forgiven even though its 2012? do they still have the program, do i have to phone to ask for the financial hardship kit? 

Posted By: footloose
Date Posted: 29/April/2012 at 4:09pm

The information that you provided in your post is very "sketchy" at best as you did not indicate when these loans were received, whether they were Federal or Provincial/Territorial and if they were not Federal, in which Province/Territory they were obtained.

I can, therefore, only provide a general summation of when student loans can be discharged or extinguished when students have not completed the full repayment of their loan agreement. To the best of my knowledge, there are only FOUR current situations in which to discharge or extinguish a student loan prior to its maturity.

1. File an Assignment in Bankruptcy. If your end of studies date is at least 7 years before you made an Assignment in Bankruptcy, you may include your student loans in your Bankruptcy and have them Discharged providing your student loan providers do not oppose the Discharge of your student loans. Should a student loan provider oppose the Discharge of your student loan, the Registrar of the Bankruptcy Court may impose additional conditions which you must satisfy before the Court will grant a Discharge. If your end of studies date is less than 7 years before you make an Assignment in Bankruptcy, your student loans WILL survive your Bankruptcy and after you receive your Discharge, you will still be responsible for the repayment of your student loans.

2. Make an Application under Subsection 178(1.1) of the Bankruptcy and Insolvency Act ( BIA ) to have your student loans that survived a previous bankruptcy included in your previous bankruptcy. Please note that this Application does NOT constitute a new or second bankruptcy but is simply an application or request to the Court to consider including those student loans that survived the previous bankruptcy to be included in the original bankruptcy. This Subsection of the BIA is more commonly referred to as the "HardshipRelief" provision. In order for an Application to be considered by the Court, your end of studies date must be at least 5 years before you make the Application and you must demonstrate to the satisfaction of the Court with full and complete documentation that you have acted in GOOD FAITH with respect to your liabilities under the student loans and you are experiencing current and ongoing FINANCIAL DIFFICULTY with respect to your liabilities under the student loans and will continue to do so into the future.

WHAT IS GOOD FAITH? You have acted in good faith if you have used the student loans for their intended purpose, attended school, did not receive a substantial economic benefit from the education, made reasonable efforts to repay your student loans based on your ability to pay and have applied for interest relief or loan forgiveness ( now rescinded ) or applied for repayment assistance, if applicable.

WHAT IS FINANCIAL DIFFICULTY? The objctive test for financial difficulty is found by completing the surplus income test set out in Directive 11R2 of the BIA and the determination of your ability to pay. The subjective test is the applicant's Statement of Income and Expenses.

3. Permanent Disability Benefit. This benefit is available to borrowers with a SEVERE PERMANENT DISABILITY. If you have a severe permanent disability, you may be eligible to have your loans immediately forgiven. The Canada Student Loans Program defines a severe permanent disability as "A functional limitation caused by a physical or mental impairment that prevents a borrower from performing the daily activities necessary to participate in studies at a post-secondary school level and the labour force and is expected to remain with the person for their expected life".

Also, students with a severe permanent disability who received loans under the Canada Student Financial Assistance Act between August 1, 1995 and July 31, 2000, more commonly referred to as "risk-shared" loans are eligible for immediate loan forgiveness regardless of when the severe permanent disability occurred, providing they meet the eligibility criteria and their loan remains with the financial institution.

You can apply for the Permanent Disability Benefit by contacting the NSLSC and requesting an application by phone. Complete and sign the application form along with all the supporting documentation and submit it to the NSLSC.

For those students who received a "risk-shared" loan, they can request an application from their financial institution and submit the completed application to their financial institution.

4. Death. All Federal and Provincial/Territorial student loans are extinguished immediately upon the death of the borrower. This usually happens when a borrower is killed in a car accident or suffers death in an unusual set of circumstances. However, for those student loans that are "risk-shared", they will survive the death of the borrower for one year.

According to Human Resources and Social Development Canada, the government can collect on "risk-shared" loans if the borrower dies or becomes permanently disabled six months after the student completes their studies. There are provisions in the agreement that the lending institutions signed with the Federal government governing "risk-shared" student loans permitting the government to collect "risk-shared" loans from the dead student's estate within the first year. Once the death has been verified, the government contacts the student's estate in writing to determine if there are any available funds to be applied against the debt.

Any income tax refund the dead student would obtain through their final tax return would also be applied toward the debt. If there are still monies owing on the student debt, it is then written off.

Educating one Consumer at a time

Posted By: chrisnat
Date Posted: 10/April/2018 at 5:21pm
I am trying to draft a letter to appeal my repayment assistance. Any advice?

Posted By: Johnny
Date Posted: 11/April/2018 at 11:38am
I answered this in previous posts. 

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

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