Urgent Help needed - Post here! - 15 Years are almost up

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15 Years are almost up - HELP!

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Forum Name: Urgent Help needed - Post here!
Forum Description: In a student loan crisis? Post here for help! Members! Watch for posts and will help out!
URL: https://www.canadastudentdebt.ca/forum_posts.asp?TID=6904
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Topic: 15 Years are almost up - HELP!

Posted By: Looking4Hope
Subject: 15 Years are almost up - HELP!
Date Posted: 20/June/2014 at 3:51am

I’m hoping someone can answer this question, or direct me towards someone who can.

I’m currently coming up on my 15 years ending for loan repayment. Of course, I am still nowhere near paying it off as the payments and amount are just too large.

I have been on interest only payments for most of those years, as frankly that was all I can financially handle. If I stop interest only payments, the monthly payment would go up to $465 until paid at the 15 year mark. There is no way I can handle that large a payment. I just cannot pay this loan. I wish I had known. I would have never gone to school. I feel like I have paid for this mistake for most of my life. :L

I do not qualify for RAP because my income level is too high. I’m stuck in purgatory.

What happens after the 15 years is up? Can I still make payments that I can afford. Will they negotiate or forgive?

If someone could help, I would greatly appreciate. This is causing me great anxiety as I feel like I’m running out of time. I don't know what to do.

Thanks so much.

Replies:

Posted By: angel44
Date Posted: 29/September/2014 at 7:33pm

Hello,

The maximum amount of time your loan can be outstanding with the NSLSC is 15 years. If you keep doing interest only payments until that 15 years is up then eventually you monthly payment will become your whole balance.

If your payments right now would be $465.00 then (depending on your total loan balance) you still have some time.

At the 15 year mark the loan will be returned to the government (CRA and provincial collection).

In the meantime, if you cannot make your regular payment you might want to just make any extra payment you can. For example, if you are paying interest monthly of $200.00, and in any given month you can pay any extra towards the loan then I would say do it. ANYTHING extra you pay will reduce your principal balance, which will make it hurt less when the loan is returned to the government.

You are already aware that your balance is not getting any smaller if you are just paying the interest, but even if it's $50.00 here, $100.00 there, something at tax time, you can pay anything you want on top of that interest monthly, and anything will help.

Posted By: SolveStudentDebt
Date Posted: 30/September/2014 at 2:15pm

Many people default rather than give away money for nothing though. The reality is that there are more benefits available to borrowers in distress when in default. There is more room for compromise. It is a sad state of affairs really when people have to default in order to get some sort of relief benefit.

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

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com

Posted By: old hippy
Date Posted: 01/October/2014 at 8:47am

Hi Looking4Hope,

I can relate to your dilemma. I was on interest relief for 5 years, and then interest-only for close to 10 years and was asking the same question - what happens at 15 years? My regular monthly payments totalled well over $700 - so interest-only was the only way I could go and my income was (I thought) too high for RAP.

Did you actually apply for RAP and get turned down? I had considered taking that step, but I was laid off, my income went way down, and I have been on RAP for almost 6 months now. It's like heaven having payments go towards the principal. Although, not so great being unemployed.

Apparently, I have six years left to repay now - that's what one person told me anyways. I went into Stage 2 RAP right away.

I had also considered defaulting and asking Johnny for help. Or applying for RAP and paying max. 20% of gross income for whatever period of time it would take to pay it off. I wanted to keep a good credit rating so I could buy a home.

My loans had been extended to a 20 year repayment period - that was an option at one time.

Posted By: michelleread
Date Posted: 01/October/2014 at 9:34am

I am sorry if this post is in the wrong place but I saw "15 years" and went for it.

I have been reading through so many forums looking for answers and I am stuck. Can anyone shed light for me on what this 15 year limitation period actually means? Is a defaulted, risk shared loan still collectable after this time? And what does "15 years from the day on which the act or omission on which the claim is based took place" mean? When does the clock start? I thought the limitation was 6 years in Saskatchewan? I am so confused now.

Posted By: SolveStudentDebt
Date Posted: 01/October/2014 at 10:23am

15 years has nothing to so with limitations for collection and recovery. 15 years int his case refers to the time in which the loan is due an payable via RAP.

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

http://www.solvestudentdebt.com" rel="nofollow - solvestudentdebt.com