Note: Registration email issue has been resolved.
  New Posts New Posts RSS Feed - Student Loans Can Be Rehabilitated
  FAQ FAQ  Forum Search   Register Register  Login Login

Student Loans Can Be Rehabilitated

 Post Reply Post Reply
Author
administrator View Drop Down
Admin Group
Admin Group
Avatar

Joined: 25/January/2003
Points: 1766
Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Topic: Student Loans Can Be Rehabilitated
    Posted: 22/September/2010 at 8:05am
Follow this thread!  If you are in collections and want to rehabilitate your loan, HRSDC says banks are obligated to take back from collections!   BUT ONLY IF YOU ARE RETURNING TO SCHOOL OR APPLYING FOR RAP!

http://www.canadastudentdebt.ca/forum_posts.asp?TID=5485&KW=Letter+Sent&title=letter-sent-to-hrsdc

So I have to write to them again and say "If someone is not returning to school or applying for RAP, how can they rehabilitate their loans?"

Here's the most recent letter I've received about this!

Dear Mr. O'Meara:

Thank you for your electronic correspondence of August 24, 2010, regarding difficulties that some borrowers may encounter in rehabilitating defaulted loans.

As you are aware, Canada Student Loans borrowers in default may apply to have their Canada Student Loans (CSLs) returned to good standing through the rehabilitation process.  The Canada Revenue Agency (CRA) administers the collection of outstanding student debt for the Canada Student Loans Program (CSLP) for those loans that were guaranteed, direct and some risk-shared loans returned under an agreement with participating financial institutions.  CRA officials receive requests for rehabilitation either directly or through the CSLP.  They then ensure that the requirements of rehabilitation, 6 monthly payments and all accrued interest paid, before referring back to the Program for approval.

In the case of risk-shared loans, participating financial institutions are obligated under the Canada Financial Assistance Act and Regulations to offer the option of rehabilitation should an individual wish to return to full time studies or participate in the Repayment Assistance Program (RAP).  In the event that a private collection agency does not wish to forward a request for this process, the borrower may contact the bank directly or the CSLP and the request will be forwarded to the appropriate department of the financial institution. 

All collection agencies are provincially regulated and I note that your website provides contact information for individuals that may have experienced difficulties with the agency assigned to their account.

Thank you once again for taking the time to write on behalf of students.

Sincerely,

Senior Director
Canada Student Loans Program
Learning Branch
Human Resources and Skills Development Canada

Administrator
-------------
Mark O'Meara
Administrator

-------------

Mark O'Meara

Back to Top
Sponsored Links


Back to Top
administrator View Drop Down
Admin Group
Admin Group
Avatar

Joined: 25/January/2003
Points: 1766
Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 22/September/2010 at 8:06am

Here's my new letter!


Thank you for your reply but the question was not answered for borrowers who are not returning to school and are not applying for RAP.

If someone is not returning to school and is not applying for RAP, can you please provide a mechanism to rehabilitate risk shared or guaranteed loans. 

Please remember that (according to your own report) in 2003 the payment system went off line and a higher than usual default cohort occurred, also there were numerous mistakes and documents lost by the NSLSC causing defaults as documented in numerous newspaper articles.  These people deserve a remedy.

Again, to clarify, please come up with regulations or provide a mechanism for the rehabilitation of these loans if the person is not going back to school or applying for RAP.  These people suffer abuse of collection agencies, have their credit rating destroyed, and the collection agencies continue to harass for more money, and do not respect the payment arrangements in place.  

I appreciate your efforts at answering my questions, but I would appreciate getting a direct answer. If there is no mechanism in place, then there needs to be one. 

Regards,

Mark O'Meara

 

Administrator

-------------

Mark O'Meara

Back to Top
 Post Reply Post Reply
  Share Topic   

Forum Jump Forum Permissions View Drop Down

Forum Software by Web Wiz Forums® version 11.08
Copyright ©2001-2017 Web Wiz Ltd.