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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lisat1607 View Drop Down
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    Posted: 27/January/2010 at 7:22am

Time is running out on me to file my defense in small claims court.  My end study date was 2002, I filed a consumer proposal in 2006 and have a full certificate for that. My loans are 14K plus 6K Interest.  heard about the "hardship application" but not sure where to get help with this.  I have until Thursday to file my small claims defense (ARC Collections/Scotia Bank). I need help or advise on this issue. Can anyone help me?

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Iknowalotofstuff View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Iknowalotofstuff Quote  Post ReplyReply Direct Link To This Post Posted: 27/January/2010 at 1:20pm
Since you have been out of school for 5 years and you have a certificate of full performance, you are eligible to make the application.  You would be successful if you could demonstrate that you have acted in good faith and experience current and ongoing financial difficulty with respect to your liabilities under the loans.  This application can be made at any time after you have been out of school for 5 years and have successfully completed your proposal.  

Ask the administrator of this site to send me an email to contact you directly and I can help you through the process.  In the alternative, you may be able to do the application yourself if the Toronto bankruptcy Court has some self help material. 

As for tomorrow, you owe the money.  Admit liability for all or the part of the student loan and dispute the rest.  Propose a payment amount and when the payment will start.  Do not make the proposed payment larger than you can handle in tough times and give a starting date.  This option is on the defence form in SCC.  There will be no judgment signed until you are in default of the negotiated terms.

ARC will have 20 days to ask for a hearing if they do not like the proposed payment.  This should give you sufficient time to see if you qualify for relief under s. 178 1.1 (hardship application) of the BIA


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Post Options Post Options   Thanks (0) Thanks(0)   Quote SolveStudentDebt Quote  Post ReplyReply Direct Link To This Post Posted: 27/January/2010 at 2:41pm

HArdhsip applications apply to government loans and not the privates, such as the one you are describing. ARC sure is suing a lot of people. They are a very aggressive and competitive agency.

What is the reason for filing an action, other than the fact that you owe this? Have they (ARC) refused a payment arrangement? Are they claiming that you are refusing to pay?
 
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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Post Options Post Options   Thanks (0) Thanks(0)   Quote lisat1607 Quote  Post ReplyReply Direct Link To This Post Posted: 28/January/2010 at 1:34am

Hello Johnny;

My loans were Canada & Federal Student loans consolidated through Scotia Bank.  The government is currently withholding tax refunds etc.  They (ARC) are saying I refused to make payments...even though I repeatedly contacted them to try to make payment arrangements and THEY (ARC) refused!! ARC wanted full payment immediately, started shouting at me over the phone and calling me at work 2 - 3 times in one day!! left messages on wrong extensions....even after I told them I was on part time duties during maternity leave.  Anyway...In 2008 The collection agency I was dealing with was Creditors Interchange..at least I could communicate with them and I made arrangements and paid $50 - $100 each pay.  Now after having the baby... I am bearly coping financially so I heard about "financial hardship..after my proposal and think I will be going that route. 
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Post Options Post Options   Thanks (0) Thanks(0)   Quote lisat1607 Quote  Post ReplyReply Direct Link To This Post Posted: 28/January/2010 at 1:51am
Your response is soooooo helpful!! You really do know a lot of stuff.  I contacted the trustee that administered my proposal and they said the same thing you said...they referred me to a lawyer who takes care of these things.  She asked me a bunch of questions and thinks I have a shot, especially with a family of 4, net mthly income $4200, I have proof of some payments (very minimal), BA (majored in Psychology), now in sales.
Oh..when I said Thursday...I meant next Thursday 4th Feb.  By the way...this lawyer wants to charge me $1000 for preparing court application, serving the documents on the interested parties, filing the application at court and appearing on my behalf.  The only problem is I have to come up with $500 for retainer..but by the time I can get that money my small claims defense deadline would have passed.  Not sure what to do here? So... If I Propose a payment amount in my defense...will that trump or affect my hardship application?  or does a successful "hardship application" trump a small claims judgement?
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Iknowalotofstuff Quote  Post ReplyReply Direct Link To This Post Posted: 28/January/2010 at 6:59am
lisat1607:
If you contact me directly through the site administrator, I will get you the necessary information to do this process yourself.  I will tell you where and how to serve the documents and what needs to be included.  I will help you with all of the paperwork etc.  I will only charge you our fee which is less than half of what the lawyer is charging if you are successful.   

You have nothing to lose and everything to gain by doing this process yourself.

You may be asking yourself why do it for nothing.  I guess I have something to prove to the people reading this site.  If you are successful in your application and tell the people on this site that our service has value and is worth the fee, it speaks well of the service I offer.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote lisat1607 Quote  Post ReplyReply Direct Link To This Post Posted: 22/February/2010 at 8:16am

SUCCESS!!! Financial Hardship application worked!! I had my day in court last week.  The Registrar signed my order...now I go to small claims settlement in April to shove it in ARC's face!!! Thanks for the info. WHOOHOOOOO!!!

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Post Options Post Options   Thanks (0) Thanks(0)   Quote Syne Quote  Post ReplyReply Direct Link To This Post Posted: 23/February/2010 at 3:06pm
Awesome news! Keep us updated!! :)
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Post Options Post Options   Thanks (0) Thanks(0)   Quote fiona1985 Quote  Post ReplyReply Direct Link To This Post Posted: 31/August/2011 at 11:26pm
Originally posted by lisat1607 lisat1607 wrote:

SUCCESS!!! Financial Hardship application worked!! I had my day in court last week.  The Registrar signed my order...now I go to small claims settlement in April to shove it in ARC's face!!! Thanks for the info. WHOOHOOOOO!!!


My congratulations, though so late. How were you able to get the applic?
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