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: 05/October/2016 at 6:46am

Hi, I am unable to pay for my student loans. They are from Ontario, OSAP Provincial and of course the Federal part. I am a dual citizen; Canadian, European, and no longer live in beautiful Canada although I've spent most of my student and working life there. I will not returning to Canada any time soon if at all. I have been financially strapped over the years and have not paid anything back. I finished my studies over 3 years ago and have had no contact with OSAP or their Wolfe's i.e. Collection agency in that time. My questions are; if I don't pay the Loans back will it affect my old age pension in 25 years when I apply for it? Can they still collect, my loan plus interest, should I move back in 10 years? Does the debt stay on my record for how long?I just don't want to be riddled with debt and interest over that time period it would be tens of thousands in interest. I've read there is a limit on debt retrieval i.e how long they can come after you, but does the debt stay with you your whole life? i.e. do you have to pay it back even after 10 years or does it get washed away so to speak?

To sum it up do I have to pay the monster of a debt back? if I don pay it back what possible problems could I face in the future?

Thanks for your advice in advance...Smile
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Syne View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Syne Quote  Post ReplyReply Direct Link To This Post Posted: 20/October/2016 at 2:12am
That's a really good question. My guess would be in 25 years that it may exist on a database somewhere that you once owed loans. I imagine though that a lot of things will change in the next 25 years, namely entitlements to post-secondary education, which would erode the system in which these debts are collected.

My hunch is that you'd go to apply for pension and some administrator will have to run it up the flagpole to have your account unlocked and you'll be fine.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 21/October/2016 at 4:39pm
Hmm sorry Syne, there is no evidence or precedent to suggest that the OP will be fine.. If it's OSAP, then the full amount might be due and tax returns would be collected...

I haven't heard of old age pensions being garnished, but no one is old enough yet (as far as I know) to test those waters.

There is no statute of limitations on OSAP loans...
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Syne View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Syne Quote  Post ReplyReply Direct Link To This Post Posted: 24/October/2016 at 3:01am
So they can garnish your tax returns 20 years after you've failed to acknowledge the debt? Can they also keep reporting it to your credit bureau?

I only ask because I participate in other forums and there's a lot of confusion surrounding student debt, specifically when it falls off your credit report and whether it can be discharged through bankruptcy. You might be surprised to know that the majority of people believe that a.) You can't discharge OSAP under any circumstances -and- b.) They can continue to ding your credit score well after that limitation has passed.

What I think people need is an explicit legal answer to these questions that I can go back and refer to. Preferably an answer that has some sort of legal precedent attached to it.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 25/October/2016 at 1:03am
They will always be able to collect the Ontario portion of your loan unless they change the rules at some point in the future.

However,  OSAP consists of several parts.  The loan parts are an Ontario and a Canada portion.  There are limitations for the collection of the Ontario portion. However, there is a 6 year limit on the Canada portion.  After that 6 years expires without activity which is getting very hard to achieve, the Canada portion is set aside in a safe place ( or vanishes through a lost hard drive) and largely "forgotten" about.  If your tax refund is still being collected its being used to pay off the Ontario portion at this stage.

Garnishing of wages only applies where there is an explicit judgement against your.  
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