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 LockedAmortization of Student Loan repayment

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pogorelichfan View Drop Down
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Joined: 24/February/2007
Location: Canada
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    Posted: 24/February/2007 at 5:41am
Ouch

Dear Readers,

 

I suppose I'll get a few angry replies for making this suggestion, but I hope people in gov't, as well as student advocates will consider it nonetheless.

 

If we accept the fact that student tuition fees are going up at an alarming rate, and that they are likely to continue increasing, we need to modify the student loan programme to recognize that students can no longer pay their loans off in the standard ten year time limit provided by the federal gov't in particular.

 

In reality, student loans are mini-mortgages that require a repayment schedules that reflect the debt loads Canadians are carrying; thus, I suggest the following:

 

Federal student loans borrowers should have the ability to extend their amortization periods to a maximum of around 250 months.  Currently, federal student loans must be paid back within a standard 114 month period--which can, admittedly, be extended (if you know to ask) to 174 months. 

 

The BC Student loan programme already offers students extensions of up to 234 months, no doubt reflecting (or acknowledging) the debt levels students already face. 

 

Yes, I know about interest relief; I know about the extra interest costs; and I've heard all the carping about the 'potential' for student tuitions to increase as a result of such a plan--but my concern is only this:  I never want to default on my loan because one's financial health pretty much goes down the crapper if you do!  I would rather make smaller monthly payments and actually have a life than go into financial purgatory for ten years--assuming I could pay $600.00 per month in payments.

 

Longer amortization periods also mean people have an option OTHER THAN interest relief, which really doesn't 'solve' anything--except put off the inevitable repayment.  Plus, your credit rating is affected if you go on interest relief--say goodbye to that car loan you might need!

 

All in all, it would be a step in the right direction...

 

Best, Julian.

 

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