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 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 have been forced to cancel programs and layoff hundreds if not thousands of full-time and contract instructors.

Again, the Liberal government has messed up the education environment.


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Forum LockedCollections and Interest Relief

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scoobydoo View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote scoobydoo Quote  Post ReplyReply Direct Link To This Post Topic: Collections and Interest Relief
    Posted: 23/October/2006 at 8:27pm
Is interest relief available on loans that are being held by a collection agency?  My ontario and canada loans are held with separate agencies.

BTW are the eligibility tables specifying gross or net income?  Also how do I read it? Is it saying that if I can't make the required payment then I qualify for interest relief?

Thanks.
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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: 24/October/2006 at 5:07am

Getting interest relief for a defaulted loan can be extremely difficult.

It is my understanding that you would have to pay all the back interest to bring the loans in good standing.  You may also be required to then make six months payments.  Then if you really grovel they may (and I stress May) allow you to apply for interest relief.  This may be difficult if the loan was a guaranteed loan and has already been paid out by the government as the bank would have to be convinced to take the loan back from the gov.

Unfortunately, it is my understanding that the tables are gross income.

You should call the CSL program and OSAP to see what they say your options are.

Please

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scoobydoo View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote scoobydoo Quote  Post ReplyReply Direct Link To This Post Posted: 24/October/2006 at 1:01pm
I've already paid the back interest and having been making payments for more than 6 months.

However, these are loans paid out by the gov and as you say it would be very hard to get the bank to take them back.  Anyway I don't think I qualify based on gross income :(

FYI there is one advantage to having you loans paid out by the gov.  It seems to have a negligable impact on your credit rating because those amounts simply disappear by getting closed and aged off your report.  At least its worked in my favour that way.

lol
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Post Options Post Options   Thanks (0) Thanks(0)   Quote frustrated-guy Quote  Post ReplyReply Direct Link To This Post Posted: 24/October/2006 at 1:39pm
Please let us know if you are able to get interest relief.  Good Luck with it.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Leafs Quote  Post ReplyReply Direct Link To This Post Posted: 24/January/2009 at 7:34am

bringing back an old post but I'm trying to re-start my life after being irresponsible and lazy with my financial money management and consequently both my OSL and CSL going into default in 2003.  I'll have my OSL fully paid off but the CSL is a bit much for me to tackle.

Never having applied for IR I had a look at the table and was surprised to see that I would qualify in the first row having make less than $1300/month for the last 4 years and being married my household income of 2 of $1300/month would fall well short of the $3200/month eligibility requirement.  One big problem though my CSL is in collection though it's still listed in Scotiabank's account. I've been making payments every month towards my CSL though directly to that Scotiabank CSL account.
 
Anyone with a CSL in collection tried getting IR and what was the outcome?  My interest at the moment are accruing at about $70/month and I need to stop the bleeding so I can get the principal down.
 
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