I am in a very difficult situation and I'm wondering if anyone can help me out with this.
Due to circumstances I had gone to bankruptcy in 2009 January. I have just been discharged this year May. I'm trying to rebuilt my credit and not make the same mistakes I have made in the past. My OSAP loan was not included because it was not in the 7 year point at that time (now it is). At the time I was filing for bankruptcy, I did not know how to deal with my OSAP loan. I completed my studies in 2005 and was sending in the repayment assistance forms each year. After I had filed for bankruptcy, In 2009, I had called into national student loan office and asked what to do with my loan and payments. They had told me since I went to bankruptcy, my account was frozen and they cannot tell me what to do or accept any payments. However, I wasnt going to make any payments, I had simply called to inquire about what to do next with osap. They did not inform me I can keep sending repayment assistance forms and nor that the government would pay for my interests. They simply told me they can't accept payments or anything and I would have to deal with my trustee. Nothing about the repayment assistance options were discussed with me, or else it's not a big deal for me to send those forms each year, which I was doing before. So, I had stopped sending in the repayment assistance forms after that. I contacted them again in 2010, and I was pretty much told the same thing, nothing about me to keep sending in the forms. After I was discharged this year 2014 in May, they sent me a letter saying I had to pay close to $7000 in accumulated interest immediately for them to update my account. They had also told me that if I had sent in the repayment assistance form each year, then I wouldn't have had to pay this much in interest and that the government would have paid for it, which does not make sense because I was not informed of this before. They are saying, I was sending it before why didn't I just continue. However, I did not know I could continue sending in the assistance forms, especially after I was told my account is frozen until I come off bankruptcy. So now, I'm left to pay immediately the interest or else it would keep building up and then it would be sent to CRA for collection. I am unable to pay the $7000 immediately. I was just discharged, my credit is not even built for me to apply for any loan. I cannot borrow that amount from anyone. I am a single mother with a baby. As much as I don't want to be, I am on social assistance temporarily. I was just diagnosed with a chronic illness of rheumatoid arthritis which prevents me from working for now. So basically I am in a very bad situation. I am in no way to come up with $7000 or I don't even know how I will be able to make payment arrangements. I don't think my medical condition will be considered for disability forgiveness as they told me for that I would have To be severely disabled. I don't know if my condition will get worse, maybe it could maybe it might get better with medication. I had explained all this to the national student loan service, however, they said they can't do anything about it. I had asked them, how will I pay for all this in my current situation? They i just have to come up with the $7000 interest or it's going to CRA and more interest will be built up. I feel it's not fair because I wasnt properly informed and considering my situation now, I'm still being forced to pay. If I was told to keep sending in my forms, all this interest wouldn't have been built up. I spoke to a manager as well, and he also said I should have known and since I contacted them few times, I was aware of it? It seriously does not make sense to me, and I do not know what to do or who to contact for help. My total osap amount is $32000 and the interest which accumulated is $7000 and $400 will continue to accumulate each month. A representative had also suggested for osap forgiveness because of my disability, but she also had stated my disability had to be severe whereas I cannot function at all on a daily basis. I had even asked to add the $7000 to my principal and if I could apply for interest repayment again. They said no. I asked if I could make small payments towards my loan in whole, they said no. Basically they gave me no options. What can I do about this? I don't know who to ask for assistance on this. I feel my situation is not being considered fairly. Please if anyone can assist me with this, I would very much appreciate it. Thank you for your time.
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This is another case of the system being totally inflexible and unwilling to help. I admire your effort to try to work something out, but as has been demonstrated, the rules don't work for people who want to try to do something.
Since it has been five years since you were out of school and you are experiencing hardship (it's normally 7 years but 5 if you can demonstrate hardship), you might talk to your trustee or a legal aid representative to see if you can now include the loans in your previous bankruptcy.
Keep us posted on how things progress.
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