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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chamcat View Drop Down
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    Posted: 03/March/2017 at 1:59pm
Hi guys,

I'm posting this in urgent because it's caused me to essentially run out of money and I need to know what my options are pretty quickly.

I'll try keep this short.  I'm an undergrad in Alberta, and took last academic year off school (Sept. 2015 - Sept. 2016).  During this time I entered the repayment assistance program.

Fast forward to now, I've been a full time student again since Sept. 2016, but didn't let canlearn know that I was back in school.  It slipped my mind because I still wasn't making payments, as I was still on the repayment assistance program.

Then at the end of January, approximately $600 was withdrawn from my account for a loan payment.  I quickly realized what had happened (repayment assistance had expired), and I let them know that I was indeed back at school.  Then on Feb. 28th, another $600 was withdrawn from my account for a loan payment.

I called them and they said they didn't get the notification I was back in school in time to prevent the Feb. 28th payment.  I'm not sure why, since I did it online in early February.  They won't refund any of the money, despite me explaining the situation.

Anyway, with an already tight student budget, $1200 gone has really put in my trouble. I feel like I should be able to get those two payments refunded since I can prove that I've been in school as a full time student this whole time.  Do I have any recourse here?  Any opinions are welcome.

Thank you.
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administrator View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 04/March/2017 at 10:54am
The only way you will get help from the NSLSC is if you escalate your case to a manager.  If you provided proof that you were back in school and they still took out a payment then that should be reversed.

Let us know how it goes.... as others have experienced this too....
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Mark OMeara
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Jen View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Jen Quote  Post ReplyReply Direct Link To This Post Posted: 04/March/2017 at 11:41am
I've read you people advice others that if student loans froze your bank you only have to change banks. That's a load of b.s. I changed my bank and they found it and froze it.quit telling people to open another account at a different bank. You are liars
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Post Options Post Options   Thanks (0) Thanks(0)   Quote administrator Quote  Post ReplyReply Direct Link To This Post Posted: 07/March/2017 at 4:25am
Did you change branches or banks.  The loan agreement gives right of offset so they can come into your bank account and take the money.

This is the first time we've heard of this here so it may be something new.  If you can provide more details i.e what province the loans were from

Always want to provide better info so if you can help out here that would be great.
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SolveStudentDebt View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 07/March/2017 at 9:11am
Set-off rights - If you owe to the BANK a student loan debt, and it goes into collection, then the BANK can take money from a bank account you hold or are named on to then be applied to that debt. A bank you owe a student loan to cannot go into an account you hold or are party to at another branch to perform "set-off". 

It has been said in this forum that in order to protect one's self from set-off like this is to do business with another bank and that is a safeguard. 

Now, what you are describing is not set-off.  This sounds like you were sued by whomever you owe the money to, and they located a bank you deal with, and issued an execution order to freeze the account and seize money. 

These are two different things. Contact your bank and ask for a detailed account outing where the execution order to freeze and seize came from. 

SO - Example" CIBC cannot seize money from your account with XYZ bank for a defaulted student loan UNLESS they have a judgment and execution order from the court allowing them to attach a bank account.  
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 Royal-NCO Quote  Post ReplyReply Direct Link To This Post Posted: 07/March/2017 at 10:40am
Originally posted by Jen Jen wrote:

I've read you people advice others that if student loans froze your bank you only have to change banks. That's a load of b.s. I changed my bank and they found it and froze it.quit telling people to open another account at a different bank. You are liars

People on this site are for the most part making a well intentioned best effort to answer people's questions and give information based on their experience and expertise.  Accusing them of B.S and lying is completely inappropriate.

As Jonny said, its most likely because there is a judgement against you.  In that case, they can execute against you if they know your bank.

If there is no judgement,  there is one other risk.  I don't know if this applies, but when I was in the thick of this I was very careful to ensure that the new institution had no direct or indirect affiliation with the institution I owed money too.  For example:  I had issues with Royal Bank.  Because I have my own business now, and needed a merchant account for my business, I was careful to check which merchant providers actually work with Royal Bank.  Moneris is one that does have an affiliation with Royal Bank. If you read the contract carefully, Royal Bank has the right of set off against the Moneris merchant account for previous amounts owed.   Another example of this is that often Credit Unions have direct relationships with the major banks.   You have to check carefully to ensure that the institution you're working with has no direct/indirect connection with the institution you owe money to.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 08/March/2017 at 7:06am
That is a VERY good point re the merchant account business and linkage.  
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 chamcat Quote  Post ReplyReply Direct Link To This Post Posted: 18/March/2017 at 2:26pm
Update:  corresponded with them several times via phone and fax explaining my situation, and eventually they agreed to refund about 3/4 of it.  They claim they needed to keep some to keep the loans in good standing.  I still feel like I should have gotten all of it back, but I didn't want to have to deal with it anymore and 3/4 is pretty good.  The cheques are in the mail!
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