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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wendyj View Drop Down
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Joined: 07/January/2005
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Points: 3 		Post Options Post Options   Thanks (0) Thanks(0)   Quote wendyj Quote  Post ReplyReply Direct Link To This Post Topic: Pre 10 year rule bankruptcy
    Posted: 07/January/2005 at 4:55pm

Here is my problem:

I went bankrupt in 1996 and was discharged in 1997 (January) due to a marital split.  I specifically asked about my student loan and was told by my bankrupcy trustee that I could not exclude my student loan. I last attended school in April 1989.

I am now looking at going back to school to upgrade and get a better job.  When I went on line to consider OSAP I got this message:

"You cannot apply for OSAP because you have defaulted on the Canada portion of you Canada-Ontario Student Loan and/or on a Canada Student Loan (CSL).  You are not eligible for OSAP funding until the default has been cleared. To obtain clearance you must contact the National Student Loans Service Centre (NSLSC) at 1-888-815-4514"

I called this number and they don't have any record under my SIN number.  They said I would have to call back on Monday before 4:30 to speak with someone.

First I am totally confused as to why the internet has a record under my SIN number but not the National Student Loans.  The other thing is why, if this is pre the 10 year rule, it would apply to me at all.  I understood that way back then all these weird rules did not apply and the bankrupcty treated a CSL loan the same as all other debt.  Any help or clarification available?

Thanks in advance, need all the help I can get on this.
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SolveStudentDebt View Drop Down
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Joined: 05/November/2003
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 08/January/2005 at 4:40am

 

 Wendy,

 You wrote:

 ""You cannot apply for OSAP because you have defaulted on the Canada portion of you Canada-Ontario Student Loan and/or on a Canada Student Loan (CSL).  You are not eligible for OSAP funding until the default has been cleared. To obtain clearance you must contact the National Student Loans Service Centre (NSLSC) at 1-888-815-4514"

 1) If you have outstanding student loans that are active and in collection, you cannot obtain any more student loans until you have either paid them - or met whichever conditions issued by the lending administration that would qualify you once again.

 2) If your debt has been removed from active collection (statute barred), you still cannot obtain any further student funding unless you pay - or agree to pay the old debt.

 3) If an individual filed bankruptcy BEFORE April/1998, and the student loans were discharged BEFORE the ammendment to the BIA was made (April 1998), then this could very well disrupt , or "prejudice" the decision to lend any further money later down the road in the event that it is determined by the lending sector that you may not have acted in good faith. This is possible also.  

 
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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wendyj View Drop Down
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Joined: 07/January/2005
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Points: 3 		Post Options Post Options   Thanks (0) Thanks(0)   Quote wendyj Quote  Post ReplyReply Direct Link To This Post Posted: 08/January/2005 at 4:59am

The bankruptcy was indeed filed before 1998.  How would I find out whether it was determined that I bankrupted in bad faith.  Would I ever have heard anthing about it?  Just as a side note on that, I don't understand why anyone would assume I would do something like this in bad faith.  Separated,  job gone, 4 kids, and trying to live on between $950 and $1150 month with rent at $680, but that is a whole other story.  I actually ended up bankrupting on less that $25,000 as trying to sell a house under separation seems like a losing proposition.

I still don't understand why I was directed to phone the NSLSC when nothing shows up there?
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SolveStudentDebt View Drop Down
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Points: 5996 		Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 08/January/2005 at 5:08am

 

 The government views a bankruptcy in different ways. Many cases where bankruptcy has been filed consisted mainly of student loans back inthose days. It was a quick fix that cost the government millions upon millions. This is why the window was closed back in 1998.

 The government would simply review the conditions and circumstances of your bankruptcy- and then draw their conclusion.

 The NSLC is not where you would have to call. I do not know why OSAp told you to call them. You have to call HRDC or Social Development Canda (888-819-2516) and query them about your concerns and findings. Any borrower wqho has or had a student loan is in their database(s).

 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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wendyj View Drop Down
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Points: 3 		Post Options Post Options   Thanks (0) Thanks(0)   Quote wendyj Quote  Post ReplyReply Direct Link To This Post Posted: 08/January/2005 at 10:42am

Thanks for the quick replies and the advice!  I really appreciated a site like this to ask these types of questions.

I will take you advice and call HRDC or Social Development Canda (888-819-2516).

Thanks again
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