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What have I done...
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Pluto View Drop Down
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Joined: 20/November/2018
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    Posted: 20/November/2018 at 4:17pm
Hi Everyone!

It’s been over approximately ten years since the end of my last study date. I had received a provincial and federal student loan during my studies. Over the years I suffered set backs and was not able to consistently commit to paying the sum back. I never made a single payment....

At one point during this period I called the national office about my federal portion to inquire about it going to collections as I started to receive letters.   I realized my loan had defaulted at that point. I believe that was around four years ago.... I still didn’t make any payments.

Now I’m trying to get back on my feet so I went to a lawyer who can write a lump sum proposal for this debt, they said that I need to contact them find out my current totals and get other paperwork together.   

I did contact the provincial to find out that my loan was forgiven and Would not have to pay anything back. I realize there are consequences to this but it’s done nothing I can do about it!
I then call the federal offices and find out that that loan is “not in active collections, but still owing” still acquiring interest daily... and essentially just sitting there forever.

I’m wondering if when I called four years ago, and now for the matter did I just restart this whole thing to never be deleted? I’m fine with the consequences of having it written off as that’s already happened anyway with my provincial loan I don’t understand why it didn’t happen to my federal portion.

If I wait six years will the federal loan be forgiven? Is calling hem preventing this from happening? I feel like such an idiot if so.

Should I just go forward with a consumer proposal? Apparently this loan I have with the federal does qualify for that according to the agent I spoke with. The federal amount is around 12,000

Please help me I have an appointment with the lawyer soon and I’m not rich by any means just trying to figure out how to get out out of this mess considering I basically wasted my time at school, accomplish nothing there, and went on my merry way to owe a substantial amount of debt.    
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Johnny View Drop Down
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Joined: 05/November/2003
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Points: 5932 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 20/November/2018 at 5:07pm
If it is in active recovery then it is a problem. If it is statute barred then it is really not a problem. It is essentially dead in that case. The government doesn't offer forgiveness to borrowers whereas student loans are legally unrecoverable and barred. If you acknowledge them then the government will reactivate. It's pretty simple. This leads me to the next part of this - bankruptcy (Consumer Proposal).  A bankruptcy proceeding of any kind is described as an acknowledgment (admission of liability) in the law that applies to limitations. So, once you proceed with bankruptcy)and you have a federal student loan (or any one really) that is asleep in the statute barred bunk, the bankruptcy proceeding of any sort will bring it out. 

If you want to make an offer to settle the student loan then I suggest you do so very carefully. If you want cost-effective help doing this I or someone in my group can help - and also see to it that it does not disrupt, but that is a call you will have to make.

If you have a good case for it then it will be a much simpler process.   
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
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Pluto View Drop Down
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Points: 4 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Pluto Quote  Post ReplyReply Direct Link To This Post Posted: 20/November/2018 at 6:18pm
Thank you for your insight.

I think that I should just move forward and get this debt paid. I’ve been lucky in some ways with having the provincial portion forgiven....

I understand that offering a consumer proposal is acknowledging this debt and thus reactivating it’s dormant status... but given I plan to pay this off I think that’s alright.

My concern now, is what will happen if they don’t accept my proposal? I plan on offering a lump sum. Do you think I have a good chance? I don’t earn a lot of money and am definitely in the lowest tax bracket, so given that, I don’t think they could get much out of me if they did not accept this proposal.
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Pluto View Drop Down
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Points: 4 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Pluto Quote  Post ReplyReply Direct Link To This Post Posted: 20/November/2018 at 6:19pm
Thank you for offering your help as well. I appreciate that. I don’t know what hep looks like though :)
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Johnny View Drop Down
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Points: 5932 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Johnny Quote  Post ReplyReply Direct Link To This Post Posted: 07/December/2018 at 12:24pm
It looks like this - www.solvestudentdebt.com :) 
Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

solvestudentdebt.com
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