This website is a testimony to the problems Canadian Student Loan borrowers experienced from approximately 1996 to 2008 and until their loans were paid off.

The privatization of the Student Loans system by the Chretien and Martin Liberal governments broke the system and defaulted thousands of borrowers who were trying to pay their loans. There were even stories of suicide due to the harassment of borrowers.

Read the report that I prepared back in 2007 here. Canada Student Loans-The Need for Change Fortunately the new Conservative government at the time revamped the program and fixed the system for new borrowers, but borrowers under the previous program were left with ruined credit and continued harassment from debt collectors.

I call on the Canadian Government to apologize to the borrowers affected by this fiasco and make amends.

Unfortunately the Liberal government is again clobbering the Education system with their upcoming changes to International Student Visas. Yes, there's a problem, but instead of a well thought out plan, they have pulled the emergency brake on the train causing a derailment. This has introduced unprecedented instability for both private and public education institutions who serve both international and local students.

Universities can't plan. I've heard of courses being cut because the government has no process in place for universities to send the newly required acceptance letters to the government.

This means that students who have been accepted can not attend courses that start in the summer 2024 semester. With cut sections, current Canadian students will have trouble getting courses, and may have to switch to part-time which changes their enrollment status and might trigger repayment of their loans or ineligibility for funding. I've seen this before. It wreaks havoc on the student loan borrowers.

Again, the Liberal government has messed up the education environment. Will the new system needed in a rush for the acceptance letters be the new Arrivecan scandal?

I call on the government to implement a slower phased in approach and delay the requirement of the acceptance letters until a process is in place to submit these letters.


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    Posted: 30/June/2015 at 8:50am
I posted this in another section and did not receive any replies and time is running out so I'm hoping I may be able to get some answers here.  My trustee is ignoring me after I questioned whether his info was correct.  Here is the breakdown:

Last date of Study is April 2001
Bankruptcy in 2002 discharged in 2003 (student loans survived obviously)
Consumer proposal after my divorce in December 2013 going until 2018 with student loans included. CIBC accepted the proposal.

My employer wants to send me back to school and the program is at one of the colleges. They are going to pay for it all.  I was also hoping to go back and finish my degree on my own dime.  My question is - does my 7 year period start over and my loans survive the proposal or am I safe because it was 12 years after my date of study?  I don't want to screw up my proposal and my trustee said it depends on who the creditor is but I "should" be okay.  Should makes me scared.

Thanks!!
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 01/July/2015 at 1:27pm
Bankruptcy and proposals are treated the same way regarding student loans i.e the loans are collectible unless you have been out of school for 7 years or 5 years in the case of proven hardship.

Going back to school is tricky. There have been conflicting rulings... so hence your trustee's caution  in saying should... 

Be prepared and be aware of case law to support your case.  Some rulings found that if you did not use student loans for the new schooling, then it did not affect the last date of studies.... some other cases were deemed the opposite.   Each case is different regarding the circumstances and what the individual was trying to accomplish.

Note that these were bankruptcy cases, not proposals, and if CIBC has accepted your proposal, then perhaps you need written assurance from CIBC, through your trustee that the proposal will constitute full completion of your obligations towards CIBC for these loans.

That being said, there is always the chance that CIBC will send it to collections and you will need proof of your proposal and action to get CIBC to call off the collection agency. 

Either way, make sure you have copies of all these documents...
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