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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bubba View Drop Down
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    Posted: 09/February/2007 at 12:30pm
If i'm not mistaken the student loan system in Australia works like this:  you must earn a minimum amount ($25,000 AUS) per year before you make any payments on your student loans.  I think the student loan system in Canada should consider this also.  I know you can qualify for interest relief in Canada if your income is low but after you exhaust interest relief aren't you required to pay regardless of how much you earn?  Payments should be based on how much you earn for the life of the loan, not just for the time you are eligible for interest relief.  This way you can live decently and still pay down your debt instead of simply living just to pay off debt.
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momof2 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote momof2 Quote  Post ReplyReply Direct Link To This Post Posted: 11/February/2007 at 2:53am

an income contingent repayment plan makes sense to everyone but the bank. 

it would also make sense that persons on any form of income supplements - ie social assistance, pension, disability, child care supplements - should not be expected to repay their loans if the government has already decided we don't make enough money.  likewise people who have zero income and do not qualify for any assistance programs should not have to endure harrassment from collection agencies. 
 
further, a spouse's income should be irrelevant to paying one's loans - it's my loan, not my spouse's and they are not legally responsible for the debt, yet their income is considered for interest relief etc.
 
interest charged on loans needs to be removed and replaced with a fixed cost of borrowing - maybe then people would be able to repay thier loans.  a fixed time period to repay the loan would be nice also - rather than having the loan linger forever.  student loans should also be able to be discharged in a bankruptcy without having to jump throguh hoops after the ten years has expired.
 
the whole system needs to be trashed - i mean overhauled.
professionals built the titanic but amateurs built the ark...
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frustrated-guy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote frustrated-guy Quote  Post ReplyReply Direct Link To This Post Posted: 12/February/2007 at 10:49am
The UK has an income contingent repayment student loan system like Australia.
 
In the UK repayment does not begin until one earns more than 15,000 UK Pounds (34,000 Cdn) yearly and payment occurs through your taxes (tax payroll deduction, called Pay as You Earn in UK).  Even then repayment is only based on 9% of your income above 34,000 Cdn.   They make sure you have at least 34,000 Cdn to live on no matter what.
 
This seems much fairer than the system in Canada.
See details here:
 
 
Perhaps we could have something like this instigated in Canada.
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frustrated-guy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote frustrated-guy Quote  Post ReplyReply Direct Link To This Post Posted: 13/February/2007 at 6:27am
The US gov has an income contingent repayment option for some of their student loans to.   It appears that an American student can choose the optional income contengent repayment plan if it is best for them.
 
 
 
It would be great if Canada Student Loans offered income contingent repayment as an option.  It sure would help many of us in Canada avoid defaults.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote jrmevans Quote  Post ReplyReply Direct Link To This Post Posted: 22/February/2007 at 6:16am

And if it ever happened, I would hope that it would also apply to people who are currently paying on a student via a collection agency.

I think an income contingent student loan would be the best. Also, have it added as a deduction, from your monthly paycheck, like cpp or EI.
 
It's just bad that it very unlikely to every happen.
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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: 22/February/2007 at 11:07am
Here is hoping.

Johnny
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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benny View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote benny Quote  Post ReplyReply Direct Link To This Post Posted: 26/February/2007 at 6:53am
Ya but with income contigent loans some people like the CFS are still going to complain anyways.
I know student loans are a responsibility and shouldnt be taken lightly but in my opinion they are a different type of loan than anything else and here is why. With a normal loan you are approved based on your ability to re pay, i.e things such as your income are taken into consideration as well as your credit rating and debt to earnings ratio. With a student loan you are given money with no job, no prospect for a job and and minimal credit rating. and they wonder why there are defaults...people need time to get established in their careers to earn decent money. If i took a loan out now i would have no problem making the payments every month, but because it took me a year to get my job i am now punished by harrasing collection agencies every month until my student loan is paid off, how stupid is that?
I am getting student laon fatigue, i have been paying every month for years and its almost paid off but i am so bitter i am thinking about not paying them this month, i will pay them when ever i please, who cares anymore?
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