New Posts New Posts RSS Feed - Student Loans coming due- exhausted all options!
  FAQ FAQ  Forum Search   Register Register  Login Login


Student Loans coming due- exhausted all options!

 Post Reply Post Reply
Author
1stepforward2bk View Drop Down
Groupie
Groupie


Joined: 17/November/2003
Location: Canada
Points: 128
Post Options Post Options   Thanks (0) Thanks(0)   Quote 1stepforward2bk Quote  Post ReplyReply Direct Link To This Post Topic: Student Loans coming due- exhausted all options!
    Posted: 07/July/2015 at 4:45am
Hi,
I am hoping someone can give me some advice.  I have an Ontario and Federal CIBC Student Loan from the 90's that are coming due in October.  I have done a few revision of terms, used interest relief and interest only payments along the way to keep this debt out of default but now that the debt is coming due, my payments are 1200 a month.  There is just no way I can make these payments.... My husband and I make too much money to qualify for any assistance program. That said, we also have a mortgage, 2 kids, consumer debt and my husband's student loan to deal with. I have been told that I have exhausted every avenue and there is and that there is nothing they can do for me.  I must pay what they ask so that it is paid off by October or I default.  CIBC recently pretty much cleaned out my account because the payments were behind.  This left me with a pile of NSF cheques, broken payment promises elsewhere and no cash for the basic amenities.  I have tried to borrow against my mortgage (we are only 5 years in) and tried to get a consolidation loan to pay these off but was turned down.
I do not want these loans to go to collections after paying/keeping them afloat for many years and the end is in sight.  I just want more time and affordable payments.  No one is willing to work with me from CIBC.  They say they are mandated by the government and that there is nothing they can do. I asked if I could work out a payment plan with the government and they said the only way I would be in contact with the government is when the loans have defaulted.  My back is against the wall .  I am so stressed out and sick over this.  Is there really NOTHING I can do?  Any help would be appreciated.
Thanks.
Back to Top
Sponsored Links


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

Joined: 25/January/2003
Points: 1796
Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 07/July/2015 at 5:33am
First of all, change banks so that you can protect yourself from these withdrawals.  I don't mean change branches, but set up your banking with a completely different bank.  They have the right to go into the account the loans were deposited into and withdraw payments.  CIBC and others are ruthless and don't care if you have no money to feed your kids.  Protect yourself first.

Some questions....  what do you mean by 'they are coming due'?   Have you applied to the RAP program?  You should apply anyways to see what things might be offered.

Under the RAP program, loans are not supposed to last more than 15 years.  I'm not sure how this works with old loans, but you should check into it.

CIBC had a practice years ago of preferring people to default because the loans were then transferred to head office from the branch, meaning the branch managers got better performance bonuses.  Not saying that's what has happened here, but they aren't very helpful. They will work things in their favour not yours.

Try to escalate this higher than the level you are dealing with now.  And contact the national student loan service to see what they say. Contact your MP to explain the predicament that the bank is putting you in and their unwillingness to negotiate and ask for guidance from them.

I'd start an RAP application immediately just to see what the outcome is.  With that assessment in hand, they can't say "you didn't apply"

Let us know how it goes...

Administrator

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

Mark O'Meara

Back to Top
1stepforward2bk View Drop Down
Groupie
Groupie


Joined: 17/November/2003
Location: Canada
Points: 128
Post Options Post Options   Thanks (0) Thanks(0)   Quote 1stepforward2bk Quote  Post ReplyReply Direct Link To This Post Posted: 07/July/2015 at 9:05am
Thanks Mark for your response. By "coming due"  I mean they will not extend my repayment time. In the past I had done a revision of terms to extend the repayment time of my loans to decrease monthly payments. When times got tough I made interest only payments to keep my loans in good standing. So now they are telling me that they cannot extend the duration of the loan any further and balance is due by October, and I must make my now regular payments of 1200 a month until then plus catch up on the  2 payments they are behind. The Ontario loan in serious risk of being sent back to the government and the Federal loan being sent to third party collectors.
I was on the phone for an hour with CIBC National Student Centre last night begging with them to work a payment plan out with me to no avail.  I believe the agent applied for the RAP program on my behalf last night but she said that I won't get it because our incomes are too high to qualify. She said it would at least bide me some time as they will not clean out the account when there is an application pending.
 
I could change my payroll deposit to another bank but because they cleaned me out, now I am in overdraft at CIBC , so that could get me into even more trouble.  I just have no idea what to do.
 
I will definitely contact my MP when my application is refused but I am afraid that it will be too late by the time any action or help would be offered.
 
The agent from CIBC suggested I get a loan from somewhere other than a bank.  Not sure what she meant by this- guessing a loan shark?
 
I feel like I am up against a losing battle.
Back to Top
administrator View Drop Down
Admin Group
Admin Group
Avatar

Joined: 25/January/2003
Points: 1796
Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 07/July/2015 at 3:03pm
I suggest you contact your MP now.     The agent from CIBC might be breaking the law by suggesting that you get a loan somewhere else.... It would be illegal for a collection agent to do that...

You need to change banks now and protect what cash you have coming in.  Bounced cheques and missed utility bills will harm your credit.   Pay off the overdraft as you can, take care of yourself first.

Contact your MP for assistance or to at least let them know what you are going through.  

Good that you've applied for RAP.   Another suggestion is to seek credit counselling... not from a debt pooling business but a bona-fide credit counselling service in your area. They might have some suggestions.

Do you have any home equity? Is it possible to remortgage? Who did you apply to for the consolidation loan? Was it a bank?

You need someone helping you out with this..

Mark

Administrator

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

Mark O'Meara

Back to Top
1stepforward2bk View Drop Down
Groupie
Groupie


Joined: 17/November/2003
Location: Canada
Points: 128
Post Options Post Options   Thanks (0) Thanks(0)   Quote 1stepforward2bk Quote  Post ReplyReply Direct Link To This Post Posted: 09/July/2015 at 6:53am
Thanks Mark.  All good advice. We do have home equity but because we are only 5 years in and our mortgage is backed by CMHC mortgage loan insurance, they bank was not able to help.  So we applied for the consolidation loan from RBC and that was a no go.
Your right...I do need help with this.... Who is my best bet? Anyone besides my MP? Seeing as its a time sensitive matter I'm not sure anyone can help before the axe falls.
 
I wish I never took out these loans.  They have crippled me for years.  I just want to pay them off and have a normal life.  I made a mistake in my early 20's and have been paying for that mistake for half my life. It's bloody depressing.
 
Back to Top
administrator View Drop Down
Admin Group
Admin Group
Avatar

Joined: 25/January/2003
Points: 1796
Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 09/July/2015 at 2:40pm
Hi,
I'm not a financial expert at this but there are couple of options.
1) Instead of a consolidation loan, perhaps a line of credit?  If your home value has gone up, then it might be possible.  On the line of credit you can make a smaller minimum payment.
2) The other option would to be to negotiate the consumer debt and the student loan debt for a payout but that would require a lump sum.  It's not good to do a consumer proposal or a bankruptcy because a mortgage renewal in the future would be difficult.
3) Speak to a financial wellness coach such as John Leblanc at CFW Group. He charges fees but might be able to help you work something out with CIBC.

There are lending business other than banks for home equity loans.... they may charge higher rates, but it might help you avoid a default on the debt. I'd suggest speaking with John at CFW Group first and see what he says...

Keep us posted on what happens...
Mark
Administrator

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

Mark O'Meara

Back to Top
1stepforward2bk View Drop Down
Groupie
Groupie


Joined: 17/November/2003
Location: Canada
Points: 128
Post Options Post Options   Thanks (0) Thanks(0)   Quote 1stepforward2bk Quote  Post ReplyReply Direct Link To This Post Posted: 13/July/2015 at 5:44am
OK Thanks Mark.  I tried to contact Johnny (via online form) last week but still have not heard back.  Hoping he gets back to me before it's too late!
Back to Top
 Post Reply Post Reply
  Share Topic   

Forum Jump Forum Permissions View Drop Down

Forum Software by Web Wiz Forums® version 12.03
Copyright ©2001-2019 Web Wiz Ltd.