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: 11/October/2004 at 10:38pm

Hi, I'd like to add another comment about John LeBlanc and the CFW Group. I haven't been to this board in nine months, which is the time I met John.

 

Let me begin with my background. I went to school for 5 years and accumulated a Student Loan worth somewhere in the neighborhood of 40k. I also met the woman I'm spending the rest of my life with, who just herself graduated a few months ago. After leaving school, we both moved back to Victoria (we spent a couple of years out of town) where I searched for work and she continued with her schooling. I did get a job, but with just my income, it was tough to support my family( she has two children). Although we made it month to month, the student loan repayments went by the way side. Lots of stuff in between then and now, but essentially the lack of payments over the years introduced me to Federal Credit, whom I'm sure many of you know.

 

Upon initial contact, they seemed very friendly and they wanted to help me get my debt back on track. They explained that my interest alone was now $270/mo, so payments in the range of 5 or 6 hundred a month would clear me up in no time. Hmm...well, I was still the only full time earner in the house, and certainly couldn't pay what they were asking. In fact, paying the interest alone wasn't even possible! As you can guess, my new friends at Federal Credit didn't want to hear that, and became "less friendly". They started the early morning calls at home, they called me at work, they threatened to sue me and investigate myself and my wife for tax issues and I started to lose sleep at night. My employer was getting a bit annoyed with the calls and I just didn't know what to do.

 

My mother mentioned that she had 10k that she could lend me if I really needed it, so I approached FC to offer a settlement. After talking to the agent and offering to pay 10k to settle this, they convinced me to offer something like 12,534.92. Not exactly sure where I'd get the extra, I said OK. Looking back, I know now that they just hung up the phone, counted to 100, then called me back. They said the bank refused, and really, if I could offer 12 instead of 10k just like that, I could certainly come up with another 7 or 8 to make it an even 20k. They were sure the bank would go for that. After explaining that I wasn't able to do that, the threats of lawsuits started again.

 

Realizing I couldn't negotiate this myself, I contacted a lawyer's office to see if they could negotiate on my behalf. Sure, they said. Not that they had done this before with student loans, but heck, for a mere $1000 they would table the offer for me. The lack of confidence in their tone made me think twice. Now what was I going to do? I searched the Internet for any ideas on dealing with credit agencies, or changing my name and moving to Tibet. Instead, I found this site.

 

I posted a few questions about my situation, and got a lot of helpful advice and support from others in similar situations. One member in particular seemed very knowledgeable. A guy named Johnny.

 

This Johnny guy gave everyone advice that came to the board, and it appeared he was a well respected member. In fact, he even claimed to have personally helped people deal with collectors. After dealing with him a few times on the board, I sent him an email. He replied, explaining that I really needed to talk to him in person to fully appreciate what he could do for me. Being the skeptic I always am, I avoided calling him. Federal Credit, however, did not avoid calling me! Every day, two and three times a day. I couldn't deal with it anymore. I made the call.

 

Now I'm on the phone with this Johnny guy from the Internet, and I have no idea what to expect. John explains his background to me and also explains what he can do for me and others in my position. He states that with very little effort, and a cost to me that is affordable, he can make the phone calls stop. not only that, but he'll negotiate a repayment plan on my behalf that I could deal with without my family starving. And although I'm talking to a guy that is literally on the other side of the country and a complete stranger, I felt that John was being completely honest and forthwith about his abilities. I decide to take a chance.

 

After discussing the details over the phone, I filled in some forms authorizing John to deal with this issue on my behalf. That was nine months ago, and that was the last time I got a call from FC looking for money. That day stopped all the harassment and the threats and I actually got some sleep that night. But not too much sleep. This wasn't over.

 

John arranged for me to pay minimum payments with FC and it was an amount I'm sure the agency was unhappy with. I paid them every month for six months, and then had to renegotiate and justify the low payments. This wasn't an issue and in fact was only a formality. I still didn't have the money they wanted, so I was to continue to another 6 months of payments. However, you'll remember that I came to this board looking for advice on a settlement. John suggested that this might be the time to try again with an offer to settle, and I had a bit more money available to me from family. So offer we did. The agency and the bank refused. Ok, I said, back to making payments. John was not so quick to give up though, and told me to hang tough. John presented the offer again, using his knowledge of the agencies and banks and how they do things. John called me a couple of days ago to inform me that the bank had accepted the offer. So what does all this mean, you ask?

 

It means this. After paying the settlement offer, I can move forward with my life. I can build my credit again and know that this is behind me forever. It means when the phone rings at work, I know who isn't there to threaten and harass me. It means my kids don't get threatening call from collectors. It means I can sleep at night, free from the pressure of this hanging over my head for the rest of my life. More importantly, it means I owe a great debt of gratitude to John Leblanc for his persistence in seeing this through. If I hadn't made that call, I'm not sure where I'd be. The stress of something like this can affect your health, your marriage, your relationships with everyone in your life. The Canadian Financial Wellness Group helped me through this stress, making sure it didn't ruin the other more important things in my life. I now have an overwhelming sense of relief knowing I can move forward. I sat still for far too long, and I have John to thank for getting back on my way.

 

I realize this became rather long, but John helped me complete a long journey. For that, I thank him.

 

Brad

 

 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Islander Quote  Post ReplyReply Direct Link To This Post Posted: 11/October/2004 at 11:39pm

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 You are most welcome, Brad.

 I am pleased with the results. Thank you for your kind words.

 

 

Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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Hello "Indeep" and Johnny!

"Indeep" - I am very curious to know what the CSL found "acceptable" in the end with regards to the settlement which eradicated your loan?... And Johnny, this is my very first posting and I have seen your name mentioned all over the place in reference to your ability to help CSL sufferers..... so I hoped that you could perhaps give me some valuable feedback?....  I am researching how to continue proceedings with my own CSL debt and stumbled upon this informative site....  Over a year ago I settled my BC Provincial SL debt at approx. 8 cents on the dollar, and have been speaking directly to and corresponding with the HRDC ever since to finally take care of my CSL, which is now 10 years old - I started out at $14k and the loan is now up to $23k.  Interestingly enough, my provincial loans officer informed me during the course of our "mediation" that CSL "NEVER SETTLES"..... although the provinces can and will.  I was not discouraged by his words, believing that where there is a will there is always a way -and my intention was and is to eradicate this final blemish on my credit record and honour the debt the best way that I can.  (I really want this monkey off of my back!)  I have included my MP in my CSL plight, having met with him at his office to explain my circumstances and asking him to be a part of all correspondence to HRDC, to which he agreed to by having me "cc" all CSL correspondence to his attention.  It has been ten years since I took my last uni course, and I graduated with my degree in 2002, (why it took me so long for convocation is a long story...) My main argument with the CSL for what I deem as not "settlement" but rather "correction of funds owed" is that I qualified for loan remission while in my studies, and now qualify as I have completed my degree of study, albeit outside the usual remission time limit parameters, (due to a documented long term illness.)  ALSO, my loan was improperly (dare I say "fraudulently"?) recalled by my CSL loaning bank in 1996 - this was the time the Canadian government put a pressured time limit on all loaning banks to CSL's that they would no longer pay out CSL's after Jan 1997? (I may be a bit off with the month?)  Any ways, my bank lied to the government, claiming that I was not cooperating with them for repayment, when in fact I had shown compliance and wanted to work out a suitable repayment schedule with my bank's financial advisor who promised to call me with a monthly repayment amount based on my then circumstances as a single mother who was in subsidized housing and working a near minimum wage job.  This same bank advisor ignored all of my phone calls to her to see what the hold up was, and lo and behold I surprisingly receive a letter from her stating that my loan was now considered in default and was subsequently sent into collections, and thus started years of interest, interest, interest and the horrid experience of a collection agency.  This agency, NCO, had been harassing me on and off for years, although their calls slowed down after I sent them a registered letter claiming my rights to written correspondence ONLY, no telephone calls at any time.  I have received no calls from NCO since dealing directly with the HRDC and working with my MP, nor have I received any NCO requests for financial statements since this process began just over a year ago.  I have made no payments whatsoever for about three years now, although "they" (HRDC or NCO?, I don't know which) have taken my income tax refund monies, but not my GST these past two returns.  I am now in the final stages with my CSL case - already having presented the same "case" to them that I did with BCPSL.  I have sent faxes, spoken with my main HRDC contact on the phone, and dealt also with his HRDC superior via letter.  I made an offer a bit better than the one that BCPSL agreed to.  It took them three months to respond, but about two months ago I received an HRDC letter claiming, (based on a financial statement I supplied them with as per their request), that I have the means to repay the loan and that only in "extenuating circumstances" do they consider "settlement"... and that they were forwarding on my financial report to NCO for their perusal and to set up a monthly payment sum.  I was furious as I had spent loads of time compiling and sending the details of my "extenuating circumstances" and they did not address my loan remission status or the bank's inappropriate default.  I cannot believe their statement that I had the ability to repay the loan, as I was then, and still remain, unemployed -I drive a $500 beater car, I do own a home with my husband, however, it has an allowable equity that bankruptcy would permit.  My frustration, as expressed to my MP, is that the government seems to encourage bankruptcies on student loans.  This seems pointless to me as it is far better to get something than nothing.  I am not fearful of bankruptcy, as my credit rating has already been marred by both student loans, yet I would like to pay what I think is a fair and correct loan amount, and show my responsibility to paying this debt off.  My MP suggested I now: ask to be forwarded to the person who has the clout to decide a "settlement"; offer the settlement amount (1/2 the original principal, to account for the loan remission break, and no interest based on the improper default);  and break this down into a three year term of repayment, with definite interest free status (at the LEAST) from the onset of my correspondence with HRDC to solve this debt.  Based on what you did for "Indeep" do you think that this would be accepted by CSL, or do you suggest that I just proceed with bankruptcy? My MP said that it takes many letters back and forth to reach an agreement with the government...... so this being said, perhaps I will plod on, but I am hearing from some that bankruptcy may be a better option for me - although I gather that you are not in agreement with bankruptcy as an "answer" to CSL problems???........... Thanks for your input, and for reading my loooooonnnnng story! CC 

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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 03/January/2005 at 4:55am

 

 Your situation is complex, indeed. However, there are so many similarities based on other case history. The CSLP/HRDC is not an easy bunch to negotiate with by any means. Believe me.

 The thing to do is approach the right individual(s) at the CSLP and HRDC. Do you have any documentationt hat substantiates the errors and faults of the lending administration(s)?

 Best thing to do is contact me when you are free to do so. I will discuss these things with you - and better assess the issues in question.

 Johnny

Solve Student Debt specializes in solutions for students and graduates in student loan default, and those at risk of defaulting.

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