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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Daisy View Drop Down
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Joined: 09/February/2004
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    Posted: 09/February/2004 at 5:56pm

Hi all,

I just had a quick question.  My husband was just defaulted on his National Student Loan and sent to HRDC collections, where he says he was told that there was no specific amount to be repaid each month, just that we should pay what we can, when we can.  I was wondering whether this was a common scenario, as I was expecting that we would have to arrange some sort of repayment schedule.  He wasn't sure why we were told that.

Thanks.

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eshelton View Drop Down
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Points: 375 		Post Options Post Options   Thanks (0) Thanks(0)   Quote eshelton Quote  Post ReplyReply Direct Link To This Post Posted: 30/October/2004 at 8:35pm
The loan is considered to be open ended (whatever that means) and that the "minimum monthly amount" is only a guideline (whatever that means).  If they ask you to fill out a financial questionaire, do so at your own risk as your minimum payments may go up.  But if that is just a guideline...

Just try to get the whole thing paid off as quickly as possible in the next few years, then you can get the credit bureau to note that the account was paid in full. 

Nothing like "loan in default" to get you refused for the most Mickey Mouse of credit cards. 
"A proof is a proof. What kind of a proof? It's a proof. A proof is a proof. And when you have a good proof, it's because it's proven." - Jean Chretien
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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: 30/October/2004 at 8:45pm

 

 Open-Ended means that a specific item has special terms set forth. "Open-ended" items on a credit report are rated with the letter "O". The old guaranteed CSLP, for instance. CSL accounts were written as bank loans with comments like "loan in default - paid by government guarantor". The actual rating for these stayed as "O5". The bank risk loans remained rated withthe letter "I" - which means "fixed-term".

 Open-ended items, in standard credit terms, could be best described as an account with a 30-day payment in full demand, hence the term "demand note or loan". So, Amex charge accounts with 30 day full payment requirements, some Gas Cards (Esso, Ultramar, etc), Overdraft accounts are all considered this.

 
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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Points: 6 		Post Options Post Options   Thanks (0) Thanks(0)   Quote emma0327 Quote  Post ReplyReply Direct Link To This Post Posted: 22/December/2004 at 5:58am

HRDC is very understanding of everyones's situation.  They take each client seperalty and understand if one of us can put 25 $/month and if another can put 100$/month.  They are there to help.  And has a lot of you may know, the collection agencies are not.  They want to pressure us into paying right now because the rep. receive a commission if we do so.

If a HRDC rep told you to give what you can, then they mean it.  Just make sure you do give something and more if you can and pay it all of has soon has you can.
Emma
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Points: 93 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Coffee Quote  Post ReplyReply Direct Link To This Post Posted: 22/December/2004 at 8:55am

You needn't worry about your credit rating if HRDC holds your guarnteed portion of your CSL. HRDC does not report defaulted CSL to either Equifax or Transunion.

However, you should endeavour to pay whatever you can right now.

Coffee
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eshelton View Drop Down
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Points: 375 		Post Options Post Options   Thanks (0) Thanks(0)   Quote eshelton Quote  Post ReplyReply Direct Link To This Post Posted: 22/December/2004 at 8:57am
Becareful.  My defaulted loan that is with HRDC is reported on my credit bureau.  Perhaps they should not be doing this? 
"A proof is a proof. What kind of a proof? It's a proof. A proof is a proof. And when you have a good proof, it's because it's proven." - Jean Chretien
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Points: 93 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Coffee Quote  Post ReplyReply Direct Link To This Post Posted: 22/December/2004 at 9:09am

Eshelton,

That's funny....my guaranteed portion of my CSL went into default in 2001 and I have ordered credit files from both Equifax and Transunion. Not so much as a bleep on the radar.

Maybe you have an older CSL.

The inconsistencies are not surprising....
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Points: 702 		Post Options Post Options   Thanks (0) Thanks(0)   Quote kwelmm Quote  Post ReplyReply Direct Link To This Post Posted: 22/December/2004 at 10:37am

Eshelton,

My CSL with HRDC is defaulted and on my credit report as well.  My loan is an older one.
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Points: 93 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Coffee Quote  Post ReplyReply Direct Link To This Post Posted: 22/December/2004 at 11:36am

Kwel, E-Shel:

On your credit report, who is showing as the lender on the guaranteed portion of your CSL.

On my credit report, the non guaranteed portion held by RBC shows as an I9. Nothing at all from HRDC.....

 
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Points: 375 		Post Options Post Options   Thanks (0) Thanks(0)   Quote eshelton Quote  Post ReplyReply Direct Link To This Post Posted: 22/December/2004 at 11:43am

Coffee,

The lender is shown as "GOVERNMENT STUDENT LOANS" 888-815-4514.  Balance is $0.  Loan in default.
"A proof is a proof. What kind of a proof? It's a proof. A proof is a proof. And when you have a good proof, it's because it's proven." - Jean Chretien
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Points: 93 		Post Options Post Options   Thanks (0) Thanks(0)   Quote Coffee Quote  Post ReplyReply Direct Link To This Post Posted: 22/December/2004 at 11:47am

Wonder when HRDC decided to cease reporting to the credit bureaus?

I have friends in the same situation as I and they show no blemishes on their credit report in spite of the fact that they owe guaranteedd portion of their CSL to HRDC.

Maybe Johnny can explain....

 

 
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Points: 375 		Post Options Post Options   Thanks (0) Thanks(0)   Quote eshelton Quote  Post ReplyReply Direct Link To This Post Posted: 22/December/2004 at 11:51am
Yeah this is sounding pretty screwed up.  Johnny is familiar with my situation with HRDC (we did a conference call with them once - works wonders) so I'm sure he can provide the final word on this matter. 
"A proof is a proof. What kind of a proof? It's a proof. A proof is a proof. And when you have a good proof, it's because it's proven." - Jean Chretien
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Points: 702 		Post Options Post Options   Thanks (0) Thanks(0)   Quote kwelmm Quote  Post ReplyReply Direct Link To This Post Posted: 22/December/2004 at 12:02pm

Coffee,

The lender is shown as the Royal Bank, phone # last reported in 10/03 rating the installment account as I9, meaning a bad debt, collection account or unable to locate.  Balance $16,000. That's what the report reads.
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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: 22/December/2004 at 3:33pm

 

 Kwelmm,

 The loan you are describing is nothing but a RBC risk student loan (federal or provincial). These ugly things rate just like a regular consumer debt, unfortunately.

 "I9" means "fixed term" or a loan with a set term with installments. The 9 speaks for itself.

 Coffee,

 Federal guaranteed, or what is called "Federal Direct" loans are the newest wave of typical government loans. It is now an "integrated" lending system and strategy. The credit reporting is different now with these new type(s). Banks are not so involved anymore as well all know, so there will be less destructive patterns reflecting when a default occurs. Federal and Provincial loans may still reflect on a report depending on the disposition of the debt.

 If you were privy to what I see every day, the destructive patterns relevent to credit reporting are a direct link to the way the banks report risk student loans. These are the credit killers in most part when defaulted.

 Here is another statistic that will raise brows...

 The default rate in Canada is slightly more than 25%. The default rate in the United states is less than 10%.

 The United states has a very valuable act that assists sutdent borrowers which is called the "Rehabilitation Act". Together with this act, the FDPCA adds a wonderful flavor to the variety of "assistance cocktails" that the USA provides it's people.

 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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kwelmm View Drop Down
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Points: 702 		Post Options Post Options   Thanks (0) Thanks(0)   Quote kwelmm Quote  Post ReplyReply Direct Link To This Post Posted: 22/December/2004 at 3:41pm

Johnny,

Part of that loan is with the HRDC--other part with Royal (NCO collections).  The report does not distinguish between this.
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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: 22/December/2004 at 6:32pm

 

 Kwelmm,

 Anything to do with your Guaranteed CSL on the report is rated "O", not "I". For instance, the credit reporting directive stipulates that guaranteed loans that are defaulted will be rated as "O5" when they subrogation process is finalized.

 A guaranteed CSL will reflect this reporting (ver-batum):

 RBC Student Loan - loan in default - paid by government guarantor. Balance is zero. Rating is O5.

 The part that is with HRDC would reflect this remark in your credit file. The other part is the federal risk portion which the RBC has sole onus to collect on their own. There is no govenrment intervention or Crowning process.

 Now, if you do not see anything on your report that reflects "Loan in default, paid by government guarantor - O5 rated, etc.", then the guaranteed amount is a federal direct loan. The RBC loan registered on the report is risk and that would be the only one reflecting on your credit history.

 The best thing to do is contaf tme, and let me see your report. This way I can disect it for you and help you better understand what is happening. In January, I will be launching a site that has virtual on-line workshops for people with credit education needs (among MANY other things). You can also wait until then if you wish.

 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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Points: 792 		Post Options Post Options   Thanks (0) Thanks(0)   Quote momof2 Quote  Post ReplyReply Direct Link To This Post Posted: 23/December/2004 at 2:53am

johnny

sounds like the new year will bring great things !!!

thank you so much for your efforts to assist and educate - we are all very grateful for your presence here.

looking forward to the new site !!
professionals built the titanic but amateurs built the ark...
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