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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Forum LockedNo new loans due to old stats barred loan

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    Posted: 19/July/2016 at 4:03am

Hello,

Hope you can help. I recently found out that I owe on a defaulted loan (which I thought was paid in full) and with the help of your website and others, I now know I only paid off the Ontario portion of the loan.

Here is the story, I went to college 1996-1999, I completed and graduated the program but was unable to find suitable work (single mother with 2 children) I wasn't able to find much more than a minimum wage position, I accessed the student interest forgiveness for my loan for about a year, but then my life took a really bad detour (won't bore you, but it evolved an abuse husband, loss of child to the children's aid and becoming homeless) *whew*  so needless to say, when your whole life sucks on such and epic level paying back loans are not even on the list of things to do.

When I managed to get my life back on track, I called the number on the CRA tax forms to see about paying off the loans that were taking my tax returns. In the years to follow I managed to pay off (what I now know ) were the Ontario portion of my loans (even when I was on welfare, I managed at  least 25 dollars a month)

Anyhow, I went back to school in 2007 for a certification program and managed to pay for it without the help of more student loans. Still not able to get "the dream job"(cause the whole world was in financial crisis) I talked to a bankruptcy trustee, I was told I had to bring with me all the debt that I thought I owed for the appointment, I called Crystal from the CRA number provided and was told I only owed 4000.00 in student loans and because I went back to school I couldn't bankrupt these loans because I reactivated them going back to school.

Fast forward to June  5, 2016 deciding again to go back to school (I know but) I filled out my Osap loan online and immediately was told to call a number. I talked to Jonathon as was told I was "stats barred" because I was in default. I told him, "nope" I have a letter from NCO saying I paid the loan in full. Jonathon said, no, you are in default of the Federal portion of the loan and am not able to access any further loans until this matter gets cleared up, so I asked him what the amount was and how it could be possible that anyone could owe the Canadian Government anything if they file taxes every year. There was no answer, I asked him now what do I do,

 he gave me 2 options, 1st, I could file bankruptcy and wait 3 years to apply or I could pay the interest owed and 2 payments and the loan is rehabbed.  I asked again how this could be possible, how this could happened when I called the CRA to find out about any debts I owed them( student loan, E I, etc) and was told I only owed 4400.00 in loans, again no answer. 

I started to research and with the help of this website i have some information.. The loan itself has been in default since 2000 and I don't believe I ever paid other than the interest relief.  (before you hate on me, I would have gladly paid for my first loan if I  was aware of it, there is a statute of limitation on this now and that is perfectly legal for me to access.) I paid off all my debt or thought i did, I know that the government has "stats barred" it, so no longer are they able to collect on it.

My question is how do i get them to lift the status so I can get a new loan to go back to school. I have contacted my MPP to see if i can get them to cut through the red tape, but if you can help i would gladly take it.
 
thanks
[Note from Admin] I separated the long posts into paragraphs for readability....
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 19/July/2016 at 5:50pm
First of all, I commend you for your efforts to pay off your loans. 

During that time period there were many changes and people ended up with 4 to 6 loans.  The govt had no central database of who owned what. Some loans were cashed with the bank.  

It is completely unfair that you tried to find out how much you owed and were given incomplete information.  The govt screwed up as it has for many people.  Fortunately they are recognizing that it is statute barred. 

Unfortunatley, although the loan is stats barred, to get further funding you need to pay it off.  The reasoning is this: If you lent your friend $1000 ten years ago and he/she did not pay it back, but the loan is statute barred, and then that friend asks you for more money today, how likely are you to lend them money again.....

Your best bet may be to go to a bank and get a student line of credit, or talk to your university about other sources of funding.

The bankruptcy advice is not good....if you declare, I still don't think you'll qualify for loans....

Keep us posted and let us know if you find any solutions...

I suggest talking to your Federal MP as this was a federal loan issue that is blocking your funding...

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 21/July/2016 at 3:46am
The only way for someone to return to studies and take out new loans while having any loans in default is to either rehabilitate the closed out loan and revive it, or pay the amount outstanding in full.  If the loan is statute barred then they make it so that you cannot take out any future funding unless you pay the old. 

Bankruptcy is a VERY dangerous thing to do as well. Never go bankrupt when someone tells or suggests you do until you have all the facts. The government agent was vague with you because these people do not have access to the information you are seeking. They cannot give you all of the accurate details because the file is in a different officer within CRA that houses barred accounts. 




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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Post Options Post Options   Thanks (0) Thanks(0)   Quote howie7of8 Quote  Post ReplyReply Direct Link To This Post Posted: 27/July/2016 at 11:41am
ok, me again. I have a question about loan the forgiveness application. I have received some information from my MPP and I have couple more questions.

I would like to know who I would talk to about debt reduction or forgiveness due to not being able to meet the financial minimums.

one of the requirements is that the applicant be out of school for 10 years, is that 10 years from program in which the loans were used for or is it from the last time you finished school.  I returned back to school in 2007 for 1 semester to complete a certificate program.

I want to thank you again for all the information you have provided.

It pisses me off to no end that I cannot get any of this information without agreeing to the debt,  freaking catch 22.

thanks
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 04/August/2016 at 1:38am
You have to take it to CRA Non-tax collection office in Belleville. Or, go directly to the minister's office via Service Canada or ESDC. 

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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