Repayment Assisstance Plan (RAP) Issues - NEW LOANS RULES RELEASED

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NEW LOANS RULES RELEASED

Printed From: CanadaStudentDebt.ca
Category: Government Program Problems
Forum Name: Repayment Assisstance Plan (RAP) Issues
Forum Description: Rules, regulations and problems (Formerly Interest Relief and Debt Reduction)
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=5370
Printed Date: 16/April/2024 at 12:28pm
Software Version: Web Wiz Forums 12.07 - https://www.webwizforums.com

Topic: NEW LOANS RULES RELEASED

Posted By: administrator
Subject: NEW LOANS RULES RELEASED
Date Posted: 15/June/2009 at 4:42pm

The Federal Government has now released the text of the new Canada Student Loan and Canada Student Financial Assistance Regulations including the new Repayment Assistance Plan (RAP) in very confusing legaleze (why not plain language so we understand) at:

http://gazette.gc.ca/rp-pr/p1/2009/2009-06-13/html/reg4-eng.html - http://gazette.gc.ca/rp-pr/p1/2009/2009-06-13/html/reg4-eng.html

The regulations give the new thresholds for income elgibility for RAP

It appears that those in default are not allowed to apply for repayment assitance plan and there is still no provision to undefault (rehabilitate) defaulted loans so that those with defaulted loans are allowed a to qualify for RAP and a regular repayment plan (those with defaulted loans held at CRA are required to repay their loans in full over 3 years instead of the 10 years that every other student is allowed.

Furthermore the regulations do not appear to fullfill the government's two written promises:

1) to not punish students for administrative errors that were promised on the canlearn website http://www.canlearn.ca/eng/main/spotlighton/bdg2008/otc.shtml - http://www.canlearn.ca/eng/main/spotlighton/bdg2008/otc.shtml

promised by HRSDC on canlearn.ca but not delivered in new regulations "Administrative changes to the Canada Student Loans Program will allow the flexibility to correct administrative errors, accept documents beyond prescribed deadlines" This promised but non delivered change would have prevented many students from going into default due to errors by the government, banks and NSLSC (eg lost forms ...)

2) promised byHRSDC on canlearn.ca but not deliverd in new regulations "allow for deferral of repayment for students who remain in full-time studies beyond their maximum weeks of loan funding and in-study interest-free status" This promised but non delivered change would have allowed doctoral and medical students in long programs to complete their degrees before entering repayment

There is a 15 day period from which we can comment commencing from June 4 when these regulations were published:

"Interested persons may make representations concerning the proposed Regulations within 15 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Glennie Graham, Senior Director, Canada Student Loans Program, Human Resources and Skills Development Canada, 200 Montcalm Street, Tower 2, Gatineau, Quebec K1A 0J9 (tel: 819-956-8937; e-mail: mailto:glennie.graham@hrsdc-rhdsc.gc.ca - glennie.graham@hrsdc-rhdsc.gc.ca ). Ottawa, June 4, 2009"

It appears if anyone wants to comment they must do so by Friday June 19, 09 at the contact info above(15 days from June 4)

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Administrator
Mark OMeara
Author of Let Go and Heal: Recovery from Emotional Pain
https://LaughSingWrite.com - http://bit.ly/heal2024

Replies:

Posted By: dale
Date Posted: 15/June/2009 at 5:53pm

Also worth noting is the change in the Permanent Disability Benefit (PDB) provisions. Moving forward, borrowers will not qualify for the benefit unless they are completely unable to work or attend school.

THis is the legal implementation of what has been (mis)understood by CSLP staff for some time to be operating policy, much to the protests of rejected applicants.

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-Still fighting

Posted By: clarssa21
Date Posted: 16/June/2009 at 6:12am

thank you for posting this for us. I tried reading it but I couldn't understand it.

Posted By: mr.o
Date Posted: 17/June/2009 at 8:06am

I have sent a reply. I encourage others to take a minute to express your views. Surely you can spare that.

Posted By: highland
Date Posted: 17/June/2009 at 11:00am

Please note the fine print:

"Interested persons may make representations concerning the proposed Regulations within 15 days after the date of publication of this notice. All such representations must cite the Canada Gazette, Part I, and the date of publication of this notice, and be addressed to Glennie Graham

wouldn't want our comments to be discounted on a technicality!!

Posted By: Tokenwhitemale
Date Posted: 17/June/2009 at 10:12pm

I'm so worried about this. I'm in the second year of my PhD. I have 3 more courses left to take, and about 3 years of school left. I'm studying at an American University.

I have about 40,000 in debts from my first couple years as an undergrad. I've exceeded the 400 weeks they allow students to go to school for. These new regulations disqualify me. If they don't include the promised changes that would've allowed grad students to stay in school, or at least something that allows people to qualify for repayment assistance while in the usa, then I'm out of luck and looking at either staying in school and that means defaulting for three years (I'm a fixed income, J1 Visa, can't legally work in this country and living off a stipend of less than 1000 a month) or dropping out of school so I can return to Canada and get on repayment assistance.

Lucky me.

Posted By: Marigold
Date Posted: 21/August/2009 at 5:16pm

I am no longer a student nor am I a young person. I had to go to CIBC when I took out my loan and have paid it regularly, with the exception of interest free periods. I would not recommend CIBC for any type of transaction. The federal government dropped the contract with CIBC several years ago. I wonder why??? The other banking institutions have are now lenders and I do not hear any complaints about them. CIBC is the only banking institutuon which has a forum for dissatisfaction. The call center is useless. They did not send out the legal papers to me to revise the loan terms, but of course, that is my fault. They teach their staff to say "no" in twenty ways, and they are so tangentile that I find it difficult to have any type of conversation. They cannot answer a straight forward question. They are not interested in solutions, because they will lose money which is their biggest fear. It is the only banking institution which needs to offer incentives to university students to bank with them - a carrot they offer. Without going into more details, I would say select other banking institutuons, Do your own assessment of a bank which you can respect, and will remain your main source of loans for your home, car and business. Ask questions, and listen seriously to the expereinces of others. Avoid the trouble with CIBC. Anyone who finds themselves in trouble with CIBC needs to send the Globe and Mail a letter. CIBC does not not like the negative attention.

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Anne